First Utility offer

Smartdriver

I am currently a First Utility customer, having swapped to them around October last year. No real grumbles so far, except - due to a mixed up reading from me - I didn't receive a bill from January, up until 15th April.

All that aside, I've had an email from them today offering a "fix for 3 years". I've looked at the Tariff Comparison Rate and it would appear that there is a substantial increase on the gas and electricity price p/kWh.

The current p/kWh for electricity is 13.43. If I fix until 2017 it will be 13.25 or a 2018 fix will be 15.13.

The current p/kWh for gas is 3.54, the 2017 cost is 4.23 and 2018 is 4.26.

Has anybody any advice on whether to fix or not (either 2017 or 2018) as it's all Greek to me :undecided. I know that nobody can be sure whether prices will remain stable (unlikely) go down (even more unlikely) or go up (likely! :mad:) but I'm having difficulty deciding which will be the better value.

All hints, tips or advice would be most welcome
Thank you

JJ_Egan

Stay on a one year tariff with no exit fees is probably the best for now .

macman

What's the exit penalty on this tariff?
But locking in just before an election is fairly risky...i agree with JJ.

Smartdriver

The exit penalty (leaving before 10th February 2018) is £30 per fuel - and I'm a dual fuel customer.

If I choose to take the offer (fixed until 2018) my monthly direct debit payment will increase by the princely sum of 96p, to £70.96

Nada666

Smartdriver wrote: »

If I choose to take the offer (fixed until 2018) my monthly direct debit payment will increase by the princely sum of 96p, to £70.96

That may well be. But the 2018 tariff is not 96p per month more expensive.

Use your annual consumption with the standing charge and price per kWh (utilise a comparison site) and ignore the useless tcr and misleading monthly payment you have been given.

But, in general, it is probably not worth choosing a new fix longer than twelve or fifteen months. For your sort of usage the 2018 and 2017 fixes could be £80 per year more than their 2016 fix. (Rough figure - impossible to be certain without breakdown of your usage between fuels.)

But take your postcode and annual usage (in kWhs, not £s) to a comparison site and have a look yourself.

macman

With the prospect of an energy price freeze should Labour achieve a majority, no doubt suppliers will be keen to lock people into an expensive 3 year fix over the next two weeks.
Nada is spot on: forget monthly DD projections-the only figure that matters is the annual cost based on your kWh usage.

Smartdriver

Thank you all for your input it's much appreciated. Will now check comparison websites.

barbedhook

I wouldn't fix for that long energy prices will come down in summer as usual so would look on comparison sites I joined first utility through Quidco last July and got £50 cashback