Cheapest Gas & Electric offers

amber_camper

Please could someone tell me whether I've got my wires crossed… My understanding is that the Utility companies (mine is Scottish Power) have to put you on the lowest tariff they offer. Is that correct? We were given a tariff last year which terminates in 2015. If the one on offer this year is cheaper, am I correct in saying that we can transfer over onto the cheaper rate on offer for this year?
Advice welcome.

matelodave

No you've contracted to pay for energy for a price until 2015. If you want a lower tariff then you have to terminate it and transfer which might cost you a contract termination fee. The power companies only have to put on their cheapest general tariff which is usually their variable one at the end of your contract (check your contract T&C's which tell you whether there are any termination fees and what will happen at the end of the term).
If you look at most suppliers they have dozens of fixed price tariffs, all with different names and termination dates and are usually only available for a limited period until the next one come out (some seem to change tariff on a monthly basis)