gas/elec switch help

Magnificent_Mrs

hi there,the comparison sites have said it will cost around £234 extra a year if we switch to the 4 year fix with edf,
is this worth it in the long run or should we go for a shorter fix ?????????????????

Cardew

Who will win the 2:30 at Ascot?

Since fixed tariffs began some 10 years ago, it has simply been a gamble.

You haven't stated how much your annual bill is now. If you are a very light user £234 is a high percentage, as a heavy user £234 is a low percentage.

If you are an average user, with a bill around £1200pa on an internet tariff, you need to estimate how much extra you will pay in the first period of the fix tariff. Then how much you will gain in the second period of the fix tariff.

Will labour get in in 2015? will there be a price freeze?

Decisions, decisions!

macman

There are at least a dozen posts on this board asking the same question. No one knows if it's 'worth it'. It may be cheaper, it may not-you won't know for at least two years.
It's essentially an insurance policy. If you want the insurance and can pay the hefty premium, then go for it. If not, stick, or go for a shorter term fix.
Just get off Standard tariff, if still on it.

Magnificent_Mrs

our annual usage currently is 1660

spacey2012

Common sense tells you they would not be offering this if they thought they would lose money.

Pincher

Take the tariff that doesn't cost £234 extra.

Yes, I know, you didn't say whether that was fixed or not, so how should I know.

macman

Magnificent_Mrs wrote: »

our annual usage currently is 1660

But usage of what? Gas or electricity?
That can't be your annual kWh usage of either-it's far too low, unless you have no heating, and tiny electricity usage. That leccy usage on it's own costs under £200 anually, so you can't possibly have a tariff saving of £234! Post your correct kWh figures.
How is the property heated and hot watered?

Cardew

spacey2012 wrote: »

Common sense tells you they would not be offering this if they thought they would lose money.

Not so!

Your 'theory' has been put forward for years on all the fixed/capped rate tariffs.

Yet nearly all of the early fixes turned out the be excellent value for the customer. Apart from a couple of BG fixed tariffs a couple of years ago, I believe all have been beneficial to the customer.

That said, 'past performance is no indication etc etc' - and it is still a gamble.

Personally it would depend how much £234 represents as a percentage of total bill.

Cardew

our annual usage currently is 1660

macman wrote: »

But usage of what? Gas or electricity?

I suspect the OP means £1660

Bluebirdman_of_Alcathays

spacey2012 wrote: »

Common sense tells you they would not be offering this if they thought they would lose money.

What guff.

I'm on a fixed price from 3 years ago. I paid a 5% premium at the time. That I made that back within 6 months of the first price rise, and, comparing what I pay now to the latest from SSE and BG, I am paying 25% below market price.

They may not 'lose money', but that is due to people on standard tariffs subsidising the likes of me. But for the savvy consumer, fixed price deals have offered fantastic value.

Magnificent_Mrs

sorry,yes £1660 a year currently ,it would be £234 extra a year if we went with edf fixed for 4 years....just wondering if it would be worth it in the long run as 234 is alot of money!