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Paying a fixed rate for electricity

Q: Is it permissible to enter into a fixed plan with ones energy supplier? By fixed plan I mean entering into a contract to pay a fixed price per kWh for any gas/electricity used during the coming year. The alternative is to remain on a variable plan, which means that the price of the gas/electricity fluctuates depending on market prices.


A: If you both agree on a specific price, it will be permissible.

In the second case, it will be permissible to follow the market rate provided you both agree to the price at the beginning of each contract so that no dispute takes place later on.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.