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  • FIRST POST
    • pollyanna24
    • By pollyanna24 6th Sep 17, 3:19 PM
    • 3,683Posts
    • 4,382Thanks
    pollyanna24
    2 year fix
    • #1
    • 6th Sep 17, 3:19 PM
    2 year fix 6th Sep 17 at 3:19 PM
    With energy prices going up, would it be sensible to go for a 2 year fix?

    Most of the fixes are 12 month, but there are a few 18 month and I have found one 2 year.
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £400,000
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Page 1
    • fredandwilma
    • By fredandwilma 6th Sep 17, 3:43 PM
    • 1,069 Posts
    • 1,425 Thanks
    fredandwilma
    • #2
    • 6th Sep 17, 3:43 PM
    • #2
    • 6th Sep 17, 3:43 PM
    Chances are, I'll be looking for a long fix, early next summer.

    Predictions say, there could be a dip or at least prices stable in the early part of next year.

    I took a long fix which has worked out very well and I shall probably do the same again, depending on the market at the time.

    However, it's a gamble.

    No one can definitively predict what will happen in the future.

    I personally think that's the way to go, at the moment. Well, not quite this moment, (approaching autumn / winter,) but certainly next spring / summer.

    Collectives have had their day, for now.

    It just depends what energy game you play?
    Fred - Where's your get up and go?

    Barney - It just got up and went.



    Carpe diem
    • Cardew
    • By Cardew 6th Sep 17, 3:46 PM
    • 27,029 Posts
    • 13,151 Thanks
    Cardew
    • #3
    • 6th Sep 17, 3:46 PM
    • #3
    • 6th Sep 17, 3:46 PM
    This question is posed loads of times and the answer is nobody knows; it is simply a gamble.

    I have today gone for a 2 year fix. If it turns out to be a bad move and prices drop considerably, I will pay the penalty for leaving and switch.
    • JJ Egan
    • By JJ Egan 6th Sep 17, 3:48 PM
    • 9,859 Posts
    • 4,058 Thanks
    JJ Egan
    • #4
    • 6th Sep 17, 3:48 PM
    • #4
    • 6th Sep 17, 3:48 PM
    With energy prices going up, would it be sensible to go for a 2 year fix?

    Most of the fixes are 12 month, but there are a few 18 month and I have found one 2 year.
    Originally posted by pollyanna24

    Depends upon two simple facts .
    Have they gone up and that's an unknown in two years time . So you are guessing that they will go up even if using informed opinion .
    Two whats the price difference .
    How much more will you pay in year one and year two than a current 12 month deal .

    £50 pa more i would probably take it £100 pa more i would not take the bet .
    • polymaff
    • By polymaff 6th Sep 17, 4:30 PM
    • 1,774 Posts
    • 760 Thanks
    polymaff
    • #5
    • 6th Sep 17, 4:30 PM
    • #5
    • 6th Sep 17, 4:30 PM
    The crystal ball here is on the blink

    Some of the 2019 deals look very expensive compared to the 2018 ones but in the end, it is your choice / punt
    • Neil Jones
    • By Neil Jones 6th Sep 17, 4:55 PM
    • 951 Posts
    • 525 Thanks
    Neil Jones
    • #6
    • 6th Sep 17, 4:55 PM
    • #6
    • 6th Sep 17, 4:55 PM
    I recently took two one year fixed deals and already in less than six weeks nothing on the Energy Club (even the new collective) can get anywhere near those for me. That's how fast prices may be rising. I don't foresee any drops long-term and I wouldn't be surprised if the overall trend is upwards between now and when we leave the EU.

    The decision is yours, just bear in mind you may end up paying more in the long run if prices drop. You can always switch again but of course bear in mind the penalty clauses, if any.
    • gitch01
    • By gitch01 6th Sep 17, 5:34 PM
    • 52 Posts
    • 14 Thanks
    gitch01
    • #7
    • 6th Sep 17, 5:34 PM
    • #7
    • 6th Sep 17, 5:34 PM
    I just took the plunge with OVO today with their 2 year fixed. comparisons say I can save £288 each year from my British Gas standard tariff.
    so if prices drop a bit then I don't think I'm going to lose out by much.
    however with all the uncertainties going on in the world I don't think prices will drop dramatically, if at all. but then what do I know.
    plus the said they can change my smart meter (for free) from BG one to an up to date one that is still compatable if I switch suppliers
    • Neil Jones
    • By Neil Jones 6th Sep 17, 7:54 PM
    • 951 Posts
    • 525 Thanks
    Neil Jones
    • #8
    • 6th Sep 17, 7:54 PM
    • #8
    • 6th Sep 17, 7:54 PM
    Well moving from any standard tariff to, well anything else really, will save money as those are all overpriced anyway. You may find the rate you've been given from OVO turns out to be rock bottom but at least it won't change for the next two years so no matter what happens price-wise you aren't affected. Good show
    • AndyPK
    • By AndyPK 6th Sep 17, 7:54 PM
    • 2,441 Posts
    • 654 Thanks
    AndyPK
    • #9
    • 6th Sep 17, 7:54 PM
    • #9
    • 6th Sep 17, 7:54 PM
    Generally 2 year fixes where you pay more than a 1 year fix are a bad idea, just to scare people who think prices will rise to where they can't afford it, so will lock into an expensive price due to fear.

    That said, as a low user the SSE 2 year elec deal was a good deal for me. (in March/april)
    • macman
    • By macman 7th Sep 17, 9:52 AM
    • 41,351 Posts
    • 17,001 Thanks
    macman
    What matters is the rate you fix at, not the length of the fix. If a supplier offered a 10 year fix at 50% more than SVT, would you be tempted?
    No free lunch, and no free laptop
    • polymaff
    • By polymaff 7th Sep 17, 11:59 AM
    • 1,774 Posts
    • 760 Thanks
    polymaff
    What matters is the rate you fix at, not the length of the fix. If a supplier offered a 10 year fix at 50% more than SVT, would you be tempted?
    Originally posted by macman
    This thread is about fixed tariffs, not SVTs, but in either case one might well consider a 10yr fixed at 50% more than the current other fixes / SVTs - if, over its lifetime, it would cost less.

    And that decision, as is being pointed out throughout this thread, is guesswork - not cut-and-dried, as you seem to think.
    Last edited by polymaff; 07-09-2017 at 12:07 PM.
    • Hengus
    • By Hengus 7th Sep 17, 4:34 PM
    • 4,554 Posts
    • 2,721 Thanks
    Hengus
    Do the maths. When the wholesale price of gas and electricity accounts for less than 40p in every £1 on your bill then the rationale for going for a long fix is debatable. If the wholesale cost of gas doubled overnight, your bill would only increase by 20%. The one ‘given’ is that suppliers will never offer a fixed tariff that they think will lose them money. When I looked at a 2 year gas deal a couple of months ago, the wholesale cost of gas would have had to rise by 30% in Year 2 to make the deal worthwhile. (Based on my usage and postcode)
    • wiseonesomeofthetime
    • By wiseonesomeofthetime 8th Sep 17, 7:09 PM
    • 133 Posts
    • 66 Thanks
    wiseonesomeofthetime
    I have taken the plunge and switched to a two year Ovo fix rather than a one year fix with Avro and, with the cashback, it actually should work out cheaper based on similar use age to last twelve months.

    Fingers crossed.
    • Blackbeard of Perranporth
    • By Blackbeard of Perranporth 11th Sep 17, 12:37 PM
    • 4,658 Posts
    • 28,094 Thanks
    Blackbeard of Perranporth
    I nearly fell for this, but banged out. My current SP deal runs to Dec 18 and this was marginally more. Then I checked the scam small print. I am going to pay £30 to exit should prices fall as they call this tariff jumping.
    My current supplier allows me to do this free of charge, although I have not done so since October 16!


    AVOID
    I soled my last sock
    For a whiff of your cheap perfume filled with hope of tears gone by
    • polymaff
    • By polymaff 11th Sep 17, 12:48 PM
    • 1,774 Posts
    • 760 Thanks
    polymaff
    I nearly fell for this, but banged out. My current SP deal runs to Dec 18 and this was marginally more. Then I checked the scam small print. I am going to pay £30 to exit should prices fall as they call this tariff jumping.
    My current supplier allows me to do this free of charge, although I have not done so since October 16!


    AVOID
    Originally posted by Blackbeard of Perranporth
    What you rant a "nearly fell for" "scam small print" to "AVOID", the rest of us call clearly-declared terms and conditions to be read and understood before entering into a contract.
    • Swan1305
    • By Swan1305 11th Sep 17, 2:13 PM
    • 5 Posts
    • 0 Thanks
    Swan1305
    Still undecided whether to go with a 1 year deal with Avro or a two year with Ovo. Can't see the energy market prices rising hugely in the near future - in fact I would hope there would be a drop...watching this thread with interest to see what others think.
    • bobstheboy
    • By bobstheboy 11th Sep 17, 2:50 PM
    • 584 Posts
    • 739 Thanks
    bobstheboy
    I have had fixed contracts for a few years, but my BG was finishing and I could not find a stand out alternative. I therefore went with Bulb, no contract, no exit fees and a price I was happy with. I will keep a keen eye on the offers that may come out and if any take my fancy I'll switch.
    • Haffiana
    • By Haffiana 11th Sep 17, 4:24 PM
    • 733 Posts
    • 763 Thanks
    Haffiana
    I am also pondering whether to go for Bulb or OVO. Bulb is currently looking £100 a year cheaper. I am a high user. I simply do not know whether Bulb will go up more than £100 in the next year or two as it is not fixed.
    • JJ Egan
    • By JJ Egan 11th Sep 17, 4:43 PM
    • 9,859 Posts
    • 4,058 Thanks
    JJ Egan
    If its not fixed then you give your required notice if a price rise is to much .
    • Haffiana
    • By Haffiana 11th Sep 17, 10:02 PM
    • 733 Posts
    • 763 Thanks
    Haffiana
    Yes obviously, but I am worried that I will miss out on this Ovo deal.
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