Should I take Martins advice???

grizzly1911

I have fixed with EDf until 9/12 mainly due to the fact my current deal finishes at the end of this month. That was a very cheap fixed one and I am having to pay an extra £200 to get back on the ladder as it were. Why are there no snakes when you want one.

This was the same cost(ish) as the best variable, for us, at present.

I didn't really want to fix any further as the jump would have been closer to £400.

Just bear in mind that whilst fixing gives you certainty on price for a period when you renew you may well have to jump further to get back on the escalator.

teamscottbarnes

Looking at the switching websites the EON one looks best for the time being for us too.
Keeping my fingers crossed its not too painful when we come to the end of the fixed rate.
Thanks for all your help/advice

Premier_2

teamscottbarnes wrote: »

Hello, having just listened to Martin on radio 2 i've run my details through uswitch.

I'm currently with OVO (new energy variable) and pay £73 for both gas and electric. According to uswitch i'm on the cheapest option and the cheapest fixed plans are more than £100 extra for the year.

We are very tight financially currently and things don't look like they're going to improve. What should I do???

We are very frugal with our heating/lighting and wear many layers in winter whilst in our cold house! Any advice would be lovely!

You are going to be struck between a rock and a hard place, I fear.

The danger is that your variable rate which you struggle to afford today will skyrocket. No one knows by how much - the only guide is that SP increased their prices on average by 10% and 19% (but some people are facing increases of 40+% :eek:)

If you fix, at least you'll now what the cost will be for the duration of the deal ... hence Martin's recommendation. In your situation that sounds like the best plan as it sounds like you cannot afford to take the risk of unknown fuel bills.

To be able to afford the energy, i.e to save the £100 extra it will cost you, then you need to reduce consumption.
Sorry if that sounds harsh, but that's the fact if you can't afford to pay for it. Ask your supplier for advice, or search the internet for ways to economise. Keeping track of your usage by regularly checking your meter(s) will help too. Consider using imeasure.org to keep these records.

Mr_K

Martin talks a lot of rot sometimes, maybe just to attract headlines/publicity. He can't know everyones individual circumstances; true a fixed deal might be of use if you're on a tight budget and any major rise would leave you stuffed. Personally I've never believed in fixed deals; energy companies wouldn't be offering them if they didn't think they could make more money out of you. People in the past have regretted fixing at a higher rate when variable tariffs have never risen that far, or risen then fallen again. It's a gamble being on a variable deal but one I'm prepared to take knowing I can switch whenever.

Premier_2

Mr_K wrote: »

... It's a gamble being on a variable deal but one I'm prepared to take knowing I can switch whenever.

You can get out of most/all fixed rate deals, just like you can out of variable rate deals.

The fact is that in the vast majority of cases, whether you opt of a fixed or variable rate, it will only be cheap if you agree to an early exit fee.

Hence the chances are that if you have a deal that does not have early exit fees, then you are on a losing bet...
e.g. the suppliers standard variable rate tariff

Mr_K

Premier wrote: »

Hence the chances are that if you have a deal that does not have early exit fees, then you are on a losing bet...
e.g. the suppliers standard variable rate tariff

Not always the case. I 'm on the variable Save Online 2 from Eon which is hundreds less than any fixed/variable tariff for me - it has no exit charges, not that I want to exit ! True, tariffs without exit charges are getting harder to find. Companies are obviously sick of us getting the best deal.

Premier_2

Mr_K wrote: »

Not always the case. I 'm on the variable Save Online 2 from Eon which is hundreds less than any fixed/variable tariff for me - it has no exit charges, not that I want to exit ! True, tariffs without exit charges are getting harder to find. Companies are obviously sick of us getting the best deal.

https://forums.moneysavingexpert.com/discussion/2593243

I did say 'chances are' as there is always an odd situation for a particular customer and their usage that a standard tariff will be cheapest (This is where Ebico attracts the really low users, etc )

Note however that Eon disguise their early exit fees by not paying a discount on a final bill (except where you are at the end of a fixed term with stated early exit fees) - from the above thread that implies a hefty 26% discount lost

Pedro1874

Mr_K wrote: »

Martin talks a lot of rot sometimes, maybe just to attract headlines/publicity. He can't know everyones individual circumstances; true a fixed deal might be of use if you're on a tight budget and any major rise would leave you stuffed. Personally I've never believed in fixed deals; energy companies wouldn't be offering them if they didn't think they could make more money out of you. People in the past have regretted fixing at a higher rate when variable tariffs have never risen that far, or risen then fallen again. It's a gamble being on a variable deal but one I'm prepared to take knowing I can switch whenever.

I am on a capped deal with Scottish Power until Sept '11, so after hearing about the price rises due in August I have started investigating. Looking at current SP capped and fixed until Jun 2013/Jan 2015) and calculating using my gas and elec kWh/year figures, given by SP every quarter which I do appreciate, I noticed that they are both 22-25% higher than what I am paying at present. So they obviously factor in their best guess at the price rises. I am going to do more calculations and check with comparison sites but as Mr K says I might just gamble on the company with the lowest rate and keep switching. Having a current cost electricity monitor connected to my PC with Techtoniq Energy station software for the last two years has helped me cut down my bills by about 25%. If you use old style light bulbs, leave them on all the time, leave your audio/video/tv/sky+/virgin+ boxes on or on standby all the time then you might as well be tearing up pound notes. Double insulating/topping up the loft makes a huge difference too.

you_llneverwalkalone

Anyone ever thought that energy companys "MIGHT" actually drop prices one day?

I know i know before everyone jumps down my throat..... I,ve got more chance of winning millions on the lottery before that happens!

steve237

teamscottbarnes wrote: »

I like the sound of an insulated hot water jacket for myself!

We no longer have a hot water tank and we were told our loft insulation meets the minimum limits although probably could do with more.

From advice looks like fixing seems most financially stable thing to do- just got to grit my teeth (and put on an extra layer in winter)

I'd fix if I were you. If you've not done so already, call your supplier and ask for your useage in elec and gas in kilowatts. This will give you accurate figures in the comparison sites. I find energyhelpline the clearest to understand, but went via beatthatquote to switch as they offered £35 cashback instead of £15 with energyhelpline.

I chose EDF's 2014 fix (will take us through 3 winters), but if that's too costly for you, EDF's 2012 fix may be more affordable and in The Times today they seem to think this is the best value fix.

Regarding loft insulation, I have seen in the newspapers stores like B&Q offering big rolls for a pound (or something very low), subsidised by the government I think. Could be a good way of saving some money on energy next time they have these offers.

All the best