Looking to fix but for how long?

courtleighmanor

HI all,

Just moved in to my new flat which only has electric. I have removed the old storage heaters that were here and have been on the old supplier (SSE) standard tariff for the last few months.

I am looking to now fix for a period of time but wanted to know if there is a cut off before you end up paying too much at the start?

For instance, I see there is the EDF Fix Freeze until February 2018 but the cost at the start will be slightly MORE than I am paying now.

Are there unscrupulous T+Cs that allow EDF to change the rate in a few years time if energy prices soar therefore negating any future savings I could make?

What is everyone's opinion/experience with long fixes? Good/bad idea?

Any info appreciated.
Chris

courtleighmanor

Also I should note it is a 2 bed flat on the 2nd floor in a block that has 3 floors (so the new electric heaters don't need much use) and I work from home so anticipate very high usage.

JJ_Egan

If you take out a fixed tariff then you pay a premium for every year you fix .
Benefit only if prices rise and you lose out if prices drop /
As prices have dropped slightly this year i would avoid a long fix .

courtleighmanor

Thanks for the response. Do you think prices will continue to drop or is it more of a 'put a finger in the air and see which way the wind blows' situation.

There are so many offers out there - bit of a minefield trying to work out what scenario suits us best!

System

Economists believe that oil and gas prices will remain low for some time to come so a long - term fix may not be as sensible as it once was. No doubt politicians will demand that lower wholesale prices are reflected in lower prices to customers. That's the good news. The other side of the coin is that falling prices mean less profits so shareholders will look to the energy companies to resist political intervention. Then there is Labour's price fix if they get in. I would hedge my bets by going for a short-term fix with no exit fees.

JJ_Egan

As above currently yearly fix .

Nada666

JJ_Egan wrote: »

If you take out a fixed tariff then you pay a premium for every year you fix .

Not (usually) true for the shorter fixes. See this thread. You are correct most longer fixes are a bad idea just now.