Right time to switch from fixed to fixed?

tomla

Hi

I'm on the edf blue+ may 2014 tariff which is obviously cheaper than anything around today but I fear changing tariff at the end of this period will not be as good as switching to a long fix now and taking the increased cost today to be cheaper in the long term.

Comparisons suggest I will pay £9 a month more now to fix until 2016 but then I could be saving money each month vs deals at the time as soon as June next year, for a further 2 years.

Is there an obvious way to know when to switch?

Thanks

mardiemare2008

There is no way to know when to switch. Suppliers give at least 30 days notice or price changes. But normally you cannot fix at the pre switch prices during this 30 day period. One piece of advice would be that once one supplier puts up the prices, they all follow suit. So if you hear on the news that one of the big suppliers is increasing prices.... that is your warning sign to look around and switch.

victor2

I'm on EDF fixed until next April, having been on their previous fix.
What they did towards the end of the last fixed tariff was to offer customers a switch to the new Blue +Price Promise tariff from the end of the existing one, so long as they applied in advance. With no penalty for leaving early, it really was a no-brainer.
Not saying they'll do the same again, but it was refreshing to see that they made an offer specifically to retain existing customers.

However, I will certainly start shopping around before the end of this tariff to see what is available. A price increase is inevitable, but might as well stay on the rate I've got until the bitter end, is my approach.

mardiemare2008

I would agree. I think you should remain on existing tariff. Depending on the the % of the next price increase it may not be beneficial to switch as the the cost of any applicable termination fees may be more than the saving (depending on your current annual usage etc.)