Huge price swings in crude oil have fluctuated between record highs of $150 per barrel to lows of around $40 per barrel. The current price hovers around $63 per barrel, but with no foreseeable end to the current downturn, market volatility is likely to remain high which means that electricity prices will also remain volatile.
In these uncertain times, one of the safest options you can take is to enter into a fixed-rate energy deal. A number of the energy providers offer fixed prices which will lock you in to a set rate for a variable period of time from 12 to 24 months. Entering into such agreements will give you the safety net of consistency – you know how much your energy is going to cost you, which will eliminate any nasty surprises if oil and gas prices suddenly rise on the open market.
The downside of these deals is that the security of consistency often comes at a premium price. You may have to pay more for your energy as a result of buying into a long-term contract. In the same vein as getting a fixed-rate mortgage, the choice is all about weighing up the relative risk and reward of getting fixed electricity prices. In the event that oil prices tum
Despite the very mutable nature of oil prices in a volatile market, the general trend inevitably will see electricity prices rise in the coming years. Finding a cheap utility fixed-rate deal over a long-term contract is much more likely to save you money, even if in the short term prices drop below your agreed fixed-rate cost.
