With energy prices skyrocketing by about 42% in 2008, many households wisely switched to capped gas and electricity tariffs, and saved substantial sums of money. Now, with capped energy tariffs expiring, and energy suppliers competing for the cheapest gas and electricity deal, consumers are considering their options.
Read this article to learn all you need to know about capped energy tariffs, and how to maximise your savings this winter.
When to use a capped energy tariff?
Capped energy tariffs set a ceiling on what your gas and electricity are going to cost in the future. Therefore, capped energy tariffs offer a kind of “insurance” against future price rises. If the price of gas and electricity is lower than the cap, so will yours. Capped energy tariffs typically run for a set period of time, which varies between suppliers. Normally, capped energy tariffs are based on monthly direct debits.
As a rule, suppliers charge more for a capped energy tariff than for one of their online deals – effectively, they ask you to pay a type of “insurance premium” in exchange for protecting you from price rises. Cancellation charges may also look you in for a long time, e.g. two years. This means that capped energy tariffs are a good idea if you expect gas and electricity prices to rise; but when energy prices are about to fall, as they are expected to do this winter, then you are better off moving to a cheaper energy tariff.
My capped tariff is about to expire – what should I do?
As a general rule, if you do nothing, your supplier will move you on to an alternative tariff, often one of their standard products. Of course, your supplier doesn’t want you to save money, they want you to spend as much on them as possible! At the moment, suppliers are competing for the cheapest online energy deal, and prices are likely to drop in the short term. Therefore, you should compare energy tariffs as soon as your old capped energy tariff runs out.
If you are worried about forgetting the date, just set yourself a reminder with SuperSwitcher: simply take a minute to sign up, go to My Account, look up Product Data, and choose the date from the little calendar icon. Done! When your capped energy tariff expires, we will send you a reminder email. Click here to register now for your free SuperSwitcher account, to set up your reminder.
Do I risk any cancellation penalties?
Unfortunately, some suppliers charge cancellation penalties if you leave before the term expires. If your capped energy tariff is going to expire shortly, it may still make sense to switch tariffs now if the penalty is small and you can get a substantially better deal from another supplier. To find out, just click here to compare gas and electricity tariffs now.
Alternatively, just set yourself a reminder on SuperSwitcher, and wait until your capped energy tariff expires. This way, you don’t risk any cancellation fees, and you can happily forget about the whole thing until we email you!
If you already have a Facebook account, you can set up your free SuperSwitcher account by just clicking on the blue "Connect with Facebook" button. This only takes a few seconds, and is the easiest way of staying on top of your energy bills!
If you already have a Facebook account, you can set up your free SuperSwitcher account by just clicking on the blue "Connect with Facebook" button. This only takes a few seconds, and is the easiest way of staying on top of your energy bills!