All you need to know about fixed energy deals from Flogas - Midlands 103

Image audioAll you need to know about fixed energy deals from Flogas - Midlands 103

Flogas this week became the first electricity provider in nearly three years to offer a fixed energy deal. This means energy customers will have greater certainty about what they will pay.

Daragh Cassidy, Head of Communications at bonkers.ie, appeared on Midlands 103 to discuss the new energy tariff option from Flogas. 

You can listen to the interview above or look at the main points discussed below.

Main points from the interview

  • Fixed rates never really caught on here in the energy market, despite being popular in the UK.
  • Even in the mortgage market, it took a while for fixed rates to catch on. Up until 2012 or 2013, fixed rates in the mortgage market were almost unheard of.
  • Eventually we ended up following in the footsteps of our European counterparts.
  • There’s been so much volatility in the energy market in recent years. Gas and electricity prices have been hugely volatile. It was too expensive for energy suppliers to pay for the fixing.
  • It could be a sign that a tiny bit of normality is returning to the energy market now that Flogas is offering fixed rates.
  • Fixed rates may not be the best option for everyone, it does just depend on your circumstances. 
  • Wholesale prices have come down a lot in recent weeks, but this may have given people a false illusion that prices are going to fall rapidly shortly. Despite the prices falling, they’re likely not at the level for decreases to be passed onto households
  • We get most of our gas from the UK and prices there are still three times what they were eighteen months ago.
  • We may see decreases in the summer months, depending on how the war in Ukraine pans out, but we just don’t know.
  • This is a trade-off whenever you sign up for a fixed deal. You have to ask yourself ‘could prices go up or down?’ - it’s a bit of a gamble.
  • Other suppliers may come out with something similar. They’ll likely be watching the demand and seeing if people go for these fixed deals.
  • Given the two years we’ve had, people are looking for certainty with their energy bills so they can budget. With this in mind, these deals may end up being relatively popular.
  • Usually fixed energy deals are a bit more expensive, but Flogas is offering a welcome credit as well which is €150 for one fuel (gas or electricity) and €300 for dual fuel
  • If prices fell and these customers wanted to exit their contract with Flogas, they would have to pay €50 per fuel. Flogas would likely try to take back the cashback as well. 

Top energy switching tips and advice

You can use our free energy price comparison tool to compare deals from Ireland's main energy suppliers and switch provider.

Find out all you need to know about the comparison and switching process in our Quickstart Guide.

You can also reduce your energy consumption by checking out these different ways to use less electricity and how to heat your home for less.

Don’t forget, we have a range of other helpful comparison tools that will help you keep money in your pocket! We have services for broadband, insurance and banking products.

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