The pros and cons of fixed rate energy bills in Northern Ireland and the suppliers offering them

Connor Lynch
·3-min read
With the Energy Price Guarantee scheme now offering less support many households will see their bills increase
-Credit: (Image: PA)


High energy costs are impacting households across Northern Ireland, particularlly in the winter months as people try to get their homes warm.

Due to the nature of the market, energy prices can fluctuate throughout the year depending on the wholesale cost of energy which can see energy rates increase or decrease as a result of this.

One way in which customers can ensure that they are paying the same rate for a year is by opting for a fixed rate contract with an energy suppiler, with three of the five Northern Irish ones offering this facilty.

Read more: NI adults 'too scared to turn on the heat' as new survey reveals extent of fuel poverty

Read more: Energy Expert's seven ways to save money on your energy bills this winter

These are; Budget Energy, Click Energy and SSE Airtricity.

The Consumer Council for Northern Ireland has said there are advantages and disadvantages to fixed rate contracts with energy suppilers and that customers should be aware of these before making any decisions.

The advantages of a fixed term contract are;

  • Price stability - The main advantage of a fixed contract is price stability. You’ll know exactly how much you’ll pay for your energy, which makes budgeting easier.

  • Protection - From price increases if energy prices rise during your contract period, your fixed rate electricity costs remain unchanged, potentially saving you money.

  • Long-term planning - The regularity of a fixed rate contract gives you peace of mind.

Th disadvantages of a fixed term contact are;

  • Expensive energy – If wholesale energy prices fall, you could end up paying more than other available tariffs that have come down in price.

  • Locked in – Fixed rate plans are on a fixed contract, meaning you can’t change your mind without incurring a cost.

  • Cancellation fees – If you do want to cancel your contract, you might be charged an exit fee. SSE Airtricity are the only supplier in Northern Ireland that currently charge an exit fee (£40).

The Consumer Council has said that customers need to be aware of when their contracts are coming to an end saying: "Your fixed-rate tariff contract is set for a fixed term – typically 12 months. It is important to make a note of the date this contract finishes. Your supplier should remind you in advance, but it is good to be prepared. On this date your rate will be rolled on to your supplier’s default tariff, which will typically be a more expensive standard tariff.

"Before your fixed-price energy tariff contract comes to an end, find out which tariff your supplier will be moving you to. They are obliged to send out end-of-contract letters, and they might offer you another fixed-rate tariff. But before you accept, consider your options, you can either:

"If you find a cheaper deal with another electricity supplier, then it is time to consider switching."

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