Warning bell: cost of fixed price energy plans start to creep up

EDF Energy has launched its new Blue + Price Freeeeze November 2016 tariff, enabling consumers to fix their energy prices for over three years. This latest salvo in the long-term fixed price battle wins EDF Energy the title of the longest fix on the market, swiping the crown from npower with its Price Fix September 2016.
 
With price rises last winter and continued uncertainty in the energy market, three in ten switchers have been opting for fixed price tariffs. The new EDF Energy plan offers long-term price security with no exit fees, but at £1,350 a year, this security now comes at a cost.
 
The plan comes in at just £3 a year cheaper than the average standard plan for customers paying by cash or cheque, one of the most expensive types of tariff on the market. However, at the time of its launch in May, npower's Price Fix September 2016 offered the same length of protection (41 months) and no cancellation fees for £1,318 a year, £32 a year less - a telling sign that a premium is creeping back onto fixed priced plans. In addition, EDF Energy has removed its Blue + Price Promise February 2015 and replaced it with the Blue + Price Promise September 2014, which at £1,210 a year is £18 a year more expensive and almost half a year shorter than its predecessor.
 
While almost three and a half years protection is a great comfort, many consumers might be willing to hedge their bets and go for one of the cheaper plans on the market. Fortunately there are a number of competitive short and mid-term fixed price plans available, which could give consumers the protection they want for a fraction of the cost. In fact, the cheapest tariff on the market, Flow Energy's Thames Fixed Online Sept 2014 is fixed until September 2014 and costs £1,135 a year, a saving of £215 against the new EDF Energy plan. However it comes with a £30 cancellation fee per fuel.
 
The new EDF Energy Blue + Price Promise September 2014 which was also launched today costs £1,210 a year - £140 cheaper than its long-term counterpart and also comes without cancellation fees. While only protecting consumers for fifteen months, this might be more appealing to those looking for a comfortable middle ground between protection and value for money.

Tom Lyon, energy expert at uSwitch.com, says: "Fixed price plans have increasingly dominated the best buy tables offering competitive prices, good guarantees and often no exit penalties. But with the premium to fix starting to creep back in, alarm bells are ringing and the decision to fix is starting to become more of a gamble for the cost-conscious consumer.
 
"It is now more important than ever that consumers heed this warning and ensure that they are looking into all options and moving to a tariff that best suits their needs. If they are willing to pay a premium for long-term price security then EDF Energy's new offering could be the answer to their prayers. However, there are also a number of short and mid-term fixed price plans which offer the best of both worlds - security without the initial extra cost."