What does a fixed rate tariff actually mean?

  • 26 April 2018
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  • Anonymous
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When you sign up to a fixed rate plan, it can be confusing to know what this actually means - and what is and isn’t subject to change.

I thought I’d highlight the T&Cs around this - to dispel any confusion about our Pay monthly fixed tariffs.

So firstly - what does the ‘fixed’ part of the agreement actually mean?
This refers to the unit rates (price per kWh) and daily standing charge you sign up to.

For example - let’s say you’re quoted 16p per kWh for the electricity, 4p per kWh for gas and 30p per day standing charge (per fuel). If you’re choosing the Better Energy or 2 Year Fixed tariff - these rates will not change for the duration of your contact (either 12 or 24 months). Even if the prices we offer increase or decrease - you won’t be affected until your contract is due to renew.

What can often cause confusion is the quoted Direct Debit amount. This amount is a personal projection only - not a guarantee. This is an estimated monthly spend, calculated using the usage information provided during this sign up process.

However this will only ever be an estimate - as we can't predict exactly what each customer will use, or how much they’ll save, as everyone’s usage habits will differ on a daily basis.

You can read more about the Direct Debit review process here.

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