Fixed deals

liscooper

I am just moving to a cheaper fixed energy deal (18 months) . Fixed deals used to mean that you paid the same every month. But I am right in thinking that a deal such as: Eon Fixed prices for 18 months means that the rate stays the same for 18 months not the price?

Ayr_Rage

It has NEVER working like that!

All that is fixed for that period is the unit price and daily standing charge.

The more you use the more you pay.

They set the initial Direct Debit based on your estimated annual usage but that figure IS NOT for an all-you-can-eat energy buffet.

It will be amended (if necessary) to match your actual usage.

Gerry1

The confusion arises because 'Fixed' doesn't always mean what might reasonably be expected.

A Fixed Tariff is where the kWh price and the standing charge are both genuinely fixed for the duration.  So far so good.

Unfortunately, the same word is also used to describe most Direct Debits.  In reality, there's no such thing as a Fixed Direct Debit: it simply removes the peaks and troughs, but it only stays fixed (i) if your actual usage turns out to be exactly the same as anticipated and (ii) if it's a Variable Tariff, it never has any 3-monthly price changes.  Hit any of these tripwires and your 'Fixed' DD will have to be changed.

'Smoothed' or 'Averaged' DD would be a much better description.

(Edited for clarity)