Energy Fixed Price Tariffs

  oresome 14:10 22 Aug 2008

Many customers will be locked into fixed price deals with the utility companies, some extending over a number of years. If wholesale prices have risen more than was anticipated during these periods, which is very likely, I presume the companies can only make up the shortfall from their remaining customers who are on variable tariffs.

Fixed price tariffs are usually more expensive to begin with, which suggests to me that the poorer in society are least likely to go for them, but may well finish up subsidising the better off. Does this seem fair?

(This is a hypothetical question in my case as I have recently entered into a fixed price deal.)

  spuds 17:08 22 Aug 2008

Looking at some of the higher charges being inflicted on the lesser well off, then I would say this practise of subsidising the better off, is already alive and functioning.

On a personal note. I have just had an Eon representative visit regarding changing suppliers and 'capped' tariffs. I am still totally confused, as to what is on offer. Apparently, they have all the information about saving percentages between companies, but.... @O(

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