EDF fixed Price Ending April 2014 - Switch Now?

[Deleted User]

I am currently on the EDF Blue+ Price Promis 2014 paying 3.45p per unit for Gas and 11.34 unit for Electricity. They calculate I spend £85 a month on electricity (electric oven) and £32 a month for Gas.

My fixed price tariff ends in six months.., and because of the price rises that seem to be imminent I don't know if I should sign up now for the EDF Blue+Price Freeeeze March 2017 which charges 14.95p per unit for Electricity and 4.101p for Gas per unit.

Its quite a hike in per unit charges.., but if I leave it, the chances are it'll only go up even higher in the next six months.

Because it will mean higher charges immediately, the comparison sites aren't a great deal of help.

I would be looking for a fixed price deal.., and would prefer a longer term one. The shorter term ones will still cost me £155 more per year and only give me a fixed price for a year.., the 2017 will give me an increase of £355 a year, but prices will be fixed for 4 years.

As I am on benefits right now, having a fixed rate is quite important. Don't quite know how I'll find the £30 extra a month it will cost though (yes I do budget very carefully).

Wolf3

So your paying £1400 a year now, and would be paying an extra £355 a year on the 4 year deal, you would have to hope EDF raise their prices by more than 25% in the next 4 years to make it worth your while switching, plus you would also have to factor in any cancellation fee. Although they might waive it by remaining with the same energy company.
Your choice should be down to if that 4 year protection is worth it on those prices or remain on a cheap rate through this winter and fix it at whatever rates are available in spring

[Deleted User]

I hear what you are saying.

However, no cancellation fee at all.

I seem to have done quite well with the prices with the fixed rate I am on presently.., but it seems that whatever I do (if I change tarrifs), my charge is going to go up. There just isn't anything cheaper than what I am paying now (variable or fixed).

But if I change right now.., I'll almost certainly be better off long time (like I am now) but it means a £30 a month hike immediately for the four year fixed tariff, compared to what I am paying now. £12 a month hike if i take a year long fixed rate looking at all of them (and with different companies).

If I wait, prices increase and fixed rate tariffs will be even higher.

But I am still going to find it difficult to find the extra £30 a month.

NPowerUser

I would be stunned if you couldn't get a good deal sometime next summer after you have enjoyed the benefits of your current deal.

How much gas and electricity do you think you will be using May 2014 through to August 2014?

There are countless themed threads regarding this tariff, perhaps a look at this one might help you in your decision?
https://forums.moneysavingexpert.com/discussion/4794667

I would rather eat gravel through a straw than migrate at the present time, but then again, this is my preference to stay cozy on my old gamble.

macman

If you are financially stretched right now, why on earth would you ditch your current (relatively) cheap rate that will see you through the winter?
Your position may be better in the spring, hopefully you'll no longer be on benefits.
Otherwise, save the £30pm for now and you'll have a reserve of £180 for when your current fix ends.

spot1034

I'm also on this tariff and have had the same thoughts - espcially when I saw the new Scottish Power March 2015 tariff, whose unit rates are actually slightly lower than the one I'm on now, although the much higher standing charge more than offsets this benefit. I figured that I could get cashback which would pretty much cancel out any higher cost for what would have been the remainder of my present contract, and then I would have eleven months at a rate which would probably cost about £100 more than my present deal.

In the end I've decided against it, because I'd then have to make another switching decision only eleven months after the end of my present deal, and who's to say that what will be available in March 2015 might not leave me worse off in the long run than perhaps getting a better deal for all or part of the same period in April 2014? There's also the possibility that because this issue is now so high on the political agenda that moves over the next few months might lead to slightly more favourable deals being around next summer - maybe a ratcheting up of fierce competition from small suppliers forcing the big 6 to offer some tempting longer fixes - also it's not inconceivable that we could have a very mild winter leading to a modest short term reduction in wholesale prices which will be passed on - this might seem unlikely but it has happened before.


It's all a guessing game, but I've decided in the end that I didn't sign up to the EDF April 2014 deal , which was and still is a really good one, to leave it early, so I'm staying put.

macman

Since there is no ETC on them, you can of course switch out of or between either of the current EDF fixes very easily. So you could, for example go to Freeeze 2017 now (if you want the insurance it offers), and then revert back to Promise 2015 in the spring (if it's still available).

WiggyDiggyPoo

deannatrois wrote: »

I am currently on the EDF Blue+ Price Promis 2014 paying 3.45p per unit for Gas and 11.34 unit for Electricity. They calculate I spend £85 a month on electricity (electric oven) and £32 a month for Gas.

My fixed price tariff ends in six months.., and because of the price rises that seem to be imminent I don't know if I should sign up now for the EDF Blue+Price Freeeeze March 2017 which charges 14.95p per unit for Electricity and 4.101p for Gas per unit.

Its quite a hike in per unit charges.., but if I leave it, the chances are it'll only go up even higher in the next six months.

Because it will mean higher charges immediately, the comparison sites aren't a great deal of help.

I would be looking for a fixed price deal.., and would prefer a longer term one. The shorter term ones will still cost me £155 more per year and only give me a fixed price for a year.., the 2017 will give me an increase of £355 a year, but prices will be fixed for 4 years.

As I am on benefits right now, having a fixed rate is quite important. Don't quite know how I'll find the £30 extra a month it will cost though (yes I do budget very carefully).

Similar to me but my tariff was Feb 2015, I switched as I could afford the £15 extra they were asking and I wanted a longer term fix deal. I couldnt use comparison sites as I'm new to the property (and my previous was different type of house so old usage figures couldn't guide me either).

In the end as the price they quoted me was 10-12% higher per unit and I still have no exit penalty, I can accept the calculated risk of prices rising more than that in 4 years. If they don't appear to be rising I can always switch again and accept the cost of the gamble.

I think this is the grey area isn't it for those who are on fixed deals who may risk getting a worse deal when it finishes than available now. I felt it was less of a risk as my initial unit price was higher than yours.

macman

If it's a new property then you just use estimated or average figures.

Yorkie1

I've got the same dilemma and have looked at the figures comparing the current EDF tariff (April 14) with the EDF 2015 and 2017 fixes.

[Current annual usage = 1800 kWh electricity (of which 1050 will be used between now and end April); probably no more than 12000 kWh gas (most of which will be used between now and end of April - very little used in summer).]

Before you even consider the increase in prices from the existing EDF tariff to one of the new EDF tariffs, you need to be aware that you'll lose the existing 6% discount for dual fuel when you move. That discount is not being offered on the new tariffs.

For the next 6 1/2 months, my overall rise in costs (including the adjustment for the loss of the 6% discount) by switching to the 2015 tariff would be 13%, i.e. £70 more.

Obviously, after the end of April, the gas usage goes down but without a switch at that point the tariff would become the standard variable tariff, with its raised standing charge. So comparison beyond then is a little difficult. However, on an annual basis I reckon my increase would be no more than £100.

On both timescales, the breakdown is a 17% rise in electricity costs, and 12-13% (depending on actual consumption) in gas costs.

Looking at the 2017 fix comparison, over the next 6 1/2 months my overall rise would be just under 20%, i.e. £95.

My annual costs, compared to the current tariff, would be £200-250 higher.

On both timescales, the breakdown is a 37% rise in electricity costs, and 25% in gas costs.

I'm certainly not convinced that switching now to the 2017 fix is worth it.

Still mulling over whether switching to the 2015 fix is worth it.

Another point to bear in mind is the comment from Martin that if you switch now, it will take a couple of months for it to go through so you'll keep on your existing tariff for the first 2 months of colder temperatures. This does not apply if you're simply switching tariffs with your existing supplier.

Quentin

Presumably if you switch company, then the switch won't happen simultaneously for both g and e.

Does this means that once the first power has switched, the remaining power account will go to a new expensive standard tariff till it too gets switched?