What would you do - 1 year or longer fix?

urg123

Hi,

My EDF fixed rate finishes at the,end of the month and I'm looking at the options for a new deal. My current payment is £54 per month.

I've been looking at the options and have 2 -
1) a fixed rate ending in Nov 2014 with exit fees for about £60 pm
2) a fixed rate ending in 2016 - no exit fees at £70 pm.

Do I go for the cheaper option for now or listen to the warnings that prices are likely to go up and take a more caluclated risk?

Your thoughts would be,really helpful.

Many thanks

Urg

Ilona

Personally I wouldn't enter into a fixed rate contract. Firstly I don't do direct debits on utilities, I know they are supposed to save you money, but I prefer a quarterly bill and pay for what I have used, after I have used it.

Secondly, I do not understand how the companies arrive at their figures, I don't trust them, and I think setting an exit fee is a money spinner for them and unfair on the consumer.

I take the old fashioned view that if my consumption is too high, therefore giving me expensive bills, I take steps to reduce it. Simple really, if I don't use it I don't have to pay for it. I am a single person household so it's easy for me. If you have a family you need to get them all singing from the same song sheet, and cut down.

Sorry, I can't help you with your either/or question.
Ilona

JOE_STOTTS

Do a quote via USWITCH or Money saving expert then hit TOPCASHBACK DOT COM!

I switched to Scottish Power last week when they were offering £105 cash back!

They are currently giving £84 cashback at the moment until 16thSeptember!

They currently do a fixed rates deal until january 2017!! Well worth fixing

Ecodave

I am in the same boat, and am leaning towards fixing for as long as possible. I like the security of knowing the rate that I will be charged. Of course, the long term fixes are more expensive than shorter term options, and I am looking at a 30% increase in my fuel bills if I take the long term fix. It may turn out that taking a shorter, cheaper fix would be cheaper in the long run, that depends on the severity of future bill increases, which we can only guess at.

Before making any decision I would join mse's energy club. Just this week npower have introduced a fix until spring 2017 which looks the best long term deal available right now, and is recommended by the energy club.

NittyGritty

urg123 wrote: »

Hi,

My EDF fixed rate finishes at the,end of the month and I'm looking at the options for a new deal. My current payment is £54 per month.

I've been looking at the options and have 2 -
1) a fixed rate ending in Nov 2014 with exit fees for about £60 pm
2) a fixed rate ending in 2016 - no exit fees at £70 pm.

Do I go for the cheaper option for now or listen to the warnings that prices are likely to go up and take a more caluclated risk?

Your thoughts would be,really helpful.

Many thanks

Urg

think of it this way, when the fixed rate ends in 2014, your rates will shoot up regardless of whatever cheapest rates you find using comparisons sites when that deal ends as each and Every new tariff is in essence a new price hike,they just hide behind a new tariff, just work out if its cheaper in the long run with NO rises until 2017, cause I think you can safely say prices will rise every year no doubt.

Pincher

You should fix when you see a good deal.

Currently, there are no good deals.

I'm just going to let my Scottish Power Online Fixed January 2014 run its course, and then freeze to death in protest.
Send somebody to me with the good news : "Gandhi Pincher ji, there is a five year fix for £1,199. please switch your heating on. We all love you like Nelson Mandela."

typistretired

My online energy saver 20 is still the best tariff with Scottish Power when I checked with them today. However, it is due to expire at the end of October 2013. The next best was the Online Fixed Price Energy November 2014. I tried to get them to allow my current tariff to expire and then the November 2014 take over but was told that this tariff had limited numbers and was being quickly taken up. So I have switched to this tariff. It was also recommended by uSwitch as one of the cheapest tariffs.

thecoldstreamer_2

Personally I'm on a fixed edf deal until next year and when doing quotes all are coming up £100 more on my yearly usage.

I've decided to pay more in the interim and go for npower fix until 2017. It may be £14 a month more on calculated usage but the prices could go up 15-18% each year so I'm saving in the long run

thriftylass

I was with EDF too on the Sept.13 fixed deal and now just went for the next one till 2014 as the 2017 deal seemed too much based on my previous years usage. Fair enough next year prices will go up again but then I'm already overpaying by so much in the first year of the 3 year deal I thought I'd be worse off.

typistretired

Maybe with a general election coming up in the next few years the government will finally tackle this industry which forever puts their rates up but never brings them down despite their large profits