Fixed Energy Prices

keefiedee

When fixed tariffs were introduced, I understood that the point was to pay a bit extra now but at a fixed price for several months or years so that one paid less if, and probably when, prices went up. This aspect of fixed tariffs doesn't seemed to be factored at all into Cheap Energy Club calculations, and I am at a loss to know whether I should change to a lower rate fixed for a shorter time, or hold on to my "fixed until Dec 2017" tariff even though it is more expensive.

Keith

System

keefiedee wrote: »

When fixed tariffs were introduced, I understood that the point was to pay a bit extra now but at a fixed price for several months or years so that one paid less if, and probably when, prices went up. This aspect of fixed tariffs doesn't seemed to be factored at all into Cheap Energy Club calculations, and I am at a loss to know whether I should change to a lower rate fixed for a shorter time, or hold on to my "fixed until Dec 2017" tariff even though it is more expensive.

Keith

Hi. You are asking an almost impossible question which is a bit like 'will the stock market go up or down'. Historically, energy prices increased annually. With the fall in oil prices, gas prices have fallen but electricity has increased. Given yesterday's news that we are on the cusp of blackouts, I wouldn't bet on electricity prices falling significantly anytime soon.

Your options are (an each way bet):

1. choose a supplier and fixed tariff with no exit fees.

2. Choose a supplier with exit fees but one that allows tariff hopping without detriment; eg, E.oN.

Personally, I wouldn't stay on a long term fixed tariff just in case.

JJ_Egan

Really depends OP on the price difference cost of units and standing charge today's tariff as against any new tariff .Price them up and see how much you would save .

modsandmockers

Yes - the choice used to be between 1 - a lower price initially, but with a near-certainty that the price would increase at an unknown time and by an unknown amount and 2 - a higher price initially, but fixed at a known price for a known period of time.

The choice now is between a wide range of fixed tariffs all of which currently seem to be cheaper than the current variable (non-fixed) tariffs. At the moment, prices are fairly steady, and possibly still on a falling trend. The current predictions of continuing price falls are far from certain.

If you think that prices are almost certain to continue falling then, for now, choose a fix without exit fees.