UK Energy provider, Npower, has announced that it is raising its energy prices, following similar announcements by SSE and British Gas. Other providers, including EDF, Eon and Scottish Power are all also expected to raise their prices in the near future. Rising energy prices has been a hot topic in the news of late and it is of little wonder that the general public have expressed concern, especially when prices are already so high in a time of continuing economic recession.
Experts have claimed that there is a solution to this. It has widely been claimed in the industry that switching to a fixed price tariff from a variable tariff is the solution to this problem, due to the fact that the former guarantees that you will not face an increase in the unit price of either gas or electricity for a pre-agreed period. However, as always, there is a catch. Fixed price deals normally start off noticeably more expensive than their variable counterparts. However, standard tariffs have the potential to become increasingly more expensive in the coming weeks and months, so customers will benefit from changing over to a fixed price deal.
Are fixed price deals the only solution to beating rising energy prices?
Fixed priced deals are almost universally seen as the solution to the growing problem, but there is a small number of alternatives. You can change over to another energy company, which is risky considering that all of the big six energy providers look set to hike up their prices, although there are still lesser known companies still providing cheaper deals.
Totally Money has some interesting ideas about how to save money on energy bills by switching credit cards. In addition to this, an interesting article by Which, showing you how to be more frugal with your energy usage, as opposed to merely getting a cheaper unit price.
Another longer-term option would be to install solar panels on the roof of your house. Although solar panels cost around £8000, the investment will arguably be worth it after 10 years as they save an average of £800 per year.
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