Switch from a cheap short term deal to something longer?

Maureen43

Hi All

I'm currently on EDF's Blue Price Promise deal (August '15).

Their latest long term deal is the Blue Price Promise (May '18)

This is more expensive than the deal I am currently on but would I be better to take a long term view?

Opinions please!

Maureen

macman

No one knows-you are simply buying an insurance policy against possible future rises with a 3.5 year fix. And such an insurance policy comes with a very high premium, as you have noticed. Which you will start to pay immediately.
Your current fix will see you through this winter-no one knows where prices will be in November, let alone next August.

Pincher

Write down the long and the short deals. Make sure you have the kWh numbers you use to get the quotes. Do the same very year with the same consumption figures. After three years, you can see for yourself what you should have done.

I know what the result is, because I've done it.

Short term fix wins. They set the long term fixes really high, because mugs are born every year.

System

Some good advice from the previous posters. I went for a 2 year fix with a smaller supplier. Given that the GBP is falling against the the USD (and could well fall even more after the Referendum) and oil is priced in USD, then I think that prices will rise. Against this is the rise in US shale production which may keep World demand low. You pays your money and takes your chance. The only certainty is that the energy companies will be looking for crafty ways to keep their profits high.