Iresa offered fixed tarrif cheaper than variable!

vtc6

Hi everyone.

My introductory rate term with Iresa for electricity is coming to an end. They have offered me two new tariffs, both have the same name except one is fixed and one is variable.

But the fixed tariff is the cheaper one. Isn't it usually the other way round? By providing a fixed rate the energy company is carrying the risk of rates going up.

Maybe Iresa suspect that rates will go down so want to encourage people not to go on the variable tariff?

quiet_advisor

Iresa is probably pitching this deal at existing customers, who will default to a more expensive variable tariff when their present contracts expire unless they take action.

The energy market exploits those who do not remain vigilant.

trickytree1963

Most companies SVT's are more expensive than fixed ones.

vtc6

trickytree1963 wrote: »

Most companies SVT's are more expensive than fixed ones.

Oh ok, I thought it would have been the other way, so I know now.

So basically Iresa have written to me that if I don't do anything then the tariff changes to a terrible default tariff. They've offered me a new decent one that is cheaper than what others are offering, which is a relief as I don't want the paperwork of moving supplier.

I know this company Iresa is getting a lot of bad reviews but they've been fine with us, we get electricity, a low rate, and we get a monthly bill, all's been fine with them.