Fixed-Term Tariff Contracts For Energy & What Happens When They Expire
There are some things in this world that we do not easily understand — with complicated energy bills likely being one of them.
This is where bill auditing services can help — they’ll find what you should be paying less for, or not at all.
Or maybe you could be paying a better price with an alternate energy supplier.
Let’s find out more about lower-cost fixed-term energy tariff contracts and how this affects your energy bill at the end of each month.
Fixed Term Tariff Expiry
When you sign up for a fixed-term tariff, you might not be aware that your contract has a limited timeframe of usually between one to three years, whereafter you will most likely be switched to a higher costing standard variable rate (SVR for short).
Unfortunately, any discounts, loyalty rewards, or related incentives will fall away once the fixed-term tariff expires.
Because the lower locked-in price protection is no longer applicable, your energy bill will be susceptible to SVR price fluctuations, whether good or bad.
Standard Variable Rate (SVR)
The standard variable rate is the usually more expensive fluctuating rate that you pay if you do not have a fixed-term rate contract with your energy supplier.
This type of tariff rate offers no price protection, comes with no rewards, and is often the more expensive option.
There are some benefits to the SVR Rate which includes its month-to-month flexibility with no exit fees or penalties for changing your energy plan or changing over to a new energy supplier.
With that being said, however, it is not the ideal long-term solution which is where an auto-switch company will be of great use in your quest to lower your energy bills.
Why You Do Not Know About This!
While it may be a popular choice to lay the blame TOTALLY at the energy supplier’s door, it is most likely not their fault that YOU the consumer do not know about a soon-to-expire fixed-term tariff contract as it is obligatory on their part to inform you ahead of time.
Now, if that email goes to spam and their email was not whitelisted — it’s not their responsibility.
Some energy suppliers will let you know how this will affect your tariff, and give you a window of opportunity to renew your fixed-term tariff (that would be great!) or tell you about other options available to you.
In Conclusion
Ultimately, it is up to the consumer to remain proactively informed and involved in monitoring their energy usage and bills.
It sounds like not knowing when a fixed-term contract is about to end can be mitigated with due diligence.
I say, set the date on your fridge calendar, circle it in bright red with a “MUST RENEW!” comment, and just do it.
And if you happen to not know what is what and what is not, you might do well with an energy bill auditing service that can help you with this aspect of your billing and many other bill reduction investigation services.
“Must Renew!”
