The friendly option for those looking for a bit more financial stability as prices remain the same throughout the agreed duration of the contract. This style of tariff makes budgeting and financial forecasting easier – ideal for SME’s or those with less financial autonomy.
The disadvantage of this type of contract is that if the energy market becomes cheaper, you won’t benefit from the savings – until your fixed agreement ends.
These contracts, although safer, tend to be more expensive as many suppliers’ charge slightly more per kilowatt hour as a contingency for market fluctuations.