If I go fixed bills 20% more! Any point?

dan_cup

Hello, I've just done a rough comparison on simply switch and it suggests the cheapest fixed deal is £220 a year more/19% more than what I pay now (npower online v20). The fixed one is edf fixed v2.

I'm not sure this makes sense to switch though as this is quite a leap, or am I missing something?

Regards

broxis11

Maybe that the prices may jump more than 19% during the term of the contract?

dan_cup

Yea true but they would need to go beyond what I've saved not moving now

Swipe

Why do you think they are all offering fixed deals? I'll take my chances and stick with regular switching.

undaunted

On the plus side
You'd know exactly what you were going to be paying in the future / term of the contract.

Should prices rise more than 19% you'd be saving money

On the negative side
You'd currently be paying 19% more than you need to & will continue to do similarly until prices rise more than 19%

Might wholesale prices go down in the future? If so you're energy bill will stay at the higher rate.

I'd compare it to mortgages - fixed & capped rate deals galore a few years ago after interest rates had been high but in reality when rates dropped most people could have done as well or better on variable rates.

If you want "peace of mind" you may find fixing worthwhile but, whilst it will possibly leave us in a minoroty, at 19% above your current rate I'd be inclined to agree with Swipe & take my chances personally