When fixed doesn’t mean fixed


Pozitive Energy customers with fixed price tariffs were surprised this week to receive a letter from the supplier announcing a price rise. This has naturally caused frustration from the business energy consumers who understandably were under the assumption that a fixed price would not change for the duration of the contract.

The letter, seen by The Energyst, has stated that the new tariffs come into force from today adding an over 20% increase to the unit price for one customer for gas. The letter states that “we have not set an arbitrary blanket raise across our portfolio, rather we have looked at factors such as current price and remaining contract length to try and minimise the impact on you.”

With current volatile market conditions catching many by surprise it is understandable that suppliers hedging strategy will be out of position, as Pozitive Energy explains who could anticipate “a sharp increase in the gas and carbon prices by up to 300%, reduction of wind and solar generation by 75%, shortage of gas and reduction of gas storage capacity in the UK.”

It is easy to sympathise with the suppliers predicament, if they change the tariff, they go against the contract’s agreement but without very deep pockets it may well be a struggle to survive the current period. Pozitive Energy says, “In normal times we would have made up this additional quantity with hedging at normal rates, and we would have been able to absorb this cost. However, as the wholesale prices have increased so significantly, it is simply not financially viable for us to do so”.

It has given customers the choice to leave the contract with no penalties or remain on the higher ‘fixed’ tariff for the rest of the contract’s duration. Pozitive Energy will not be the only supplier in this situation and its letter is both humble and clear as to the reasons why. However, if a fixed tariff contract is liable to change in the future depending on market conditions, can it really be called fixed at all?


  1. Appreciate the article, I’m in the same boat as the Gas customer you referred to.
    Would you be prepared to share your opinion on this circumstance?
    I ask because the circa £150k pa I spend with Pozitive is due to increase to £190k, with no seemingly obvious route to solution other than engaging another supplier at nigh on double current contracted rates.
    Also I would love to hear your opinion on the 48 hour notice given to us (the customers) of this increase, surely the standard 30 day notice period would be more fitting if they’re already breaching their own T&Cs and our contracts?

    Appreciate your article, it’s well written and I’m glad the situation is being exposed.

  2. Would recommend customers in a similar position with this supplier, or any other energy supplier that chooses to vary a “fixed” contract, carefully read the T&Cs that accompanied their contract. These should be the T&Cs that were valid at the time the contract was agreed rather than those that the supplier may choose to send to you now.

    These are obviously extreme circumstances in the energy market, but the rule of law must nevertheless still apply.


Please enter your comment!
Please enter your name here