Mufti Online — Madrasah Ta'leemuddeen

Is it permissible to enter into a fixed plan with ones energy supplier?

Published as Paying a fixed rate for electricity

· 17 Rabiʻ I 1440 AH1 min readEnglish

Question

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.

Answer

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 by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/27645
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