Fixed or variable? Pending energy price decreases!

Carol62

I need to switch my energy supplier, but do I go with a fixed or variable in light of the pending price decreases being announced by some suppliers? My current supplier is announcing a 5% decrease if I say on variable but no decrease if I fix for a year. Or do I go variable and become a "switching tart"?
Anyone else in the same predicament please?

CashStrapped

Do not get confused by the terms Fixed and Variable.

Energy companies play fast and loose with these terms, mainly to confuse us all.

Companies have

Variable Tariffs: This means the tariffs (what you pay for electric and gas) can change at any time. You can normally switch whenever you want from these tariffs. They are usually very uncompetitive. Stay Away!

and

Fixed Tariffs: This means the tariff you sign up for is fixed at at particular price for the term that was offered (usually 1 year) It does not always mean you are fixed and locked into that 1 year term permanently! Only the tariff (price) is fixed!

Switching Fees on Fixed Tariffs: Some companies do charge fees for leaving part way through a fixed tariff you have signed up to. Not all do however, so you have to check the terms before you sign up.

To confuse the matter further, those companies that charge for switching to another company may not charge for switching (hopping) to another tariff with them.

To further confuse the confused matter, those companies that do not charge for switching to another company may charge for hopping to another tariff with them.

Example:

EDF offer one year fixed tariffs but have no penalties for switching to another company or hopping to another tariff with them.

OVO offer one year fixed tariffs and do not charge a penalty for switching to another company but may charge for hopping to another tariff with them.

E.On offer one year fixed tariffs and do charge a penalty for switching to a tariff with another company but do not charge for hopping to another tariff with them.

The companies listed above often have multiple tariffs, so the examples I gave may not reflect the terms in their full range of fixed tariffs (you have to check yourself)!

So..........still with me? In summary...

Variable means variable (and usually more expensive).

Fixed does not mean fixed and can mean a variety of things.

Got it? No? Good, because that is exactly what they want!

Choice is great until you have so much choice you don't know what to choose!

footyguy

Carol62 wrote: »

I need to switch my energy supplier, but do I go with a fixed or variable in light of the pending price decreases being announced by some suppliers? My current supplier is announcing a 5% decrease if I say on variable but no decrease if I fix for a year. Or do I go variable and become a "switching tart"?
Anyone else in the same predicament please?

As far as I know only 2 suppliers have to date announced price cuts - and those price cuts are only for gas not electricity which appear to be nudging upwards if anything when I look at the whole market.

For both suppliers that have announced the reduction to their gas price, MSE ran individual news articles. I suggest you take a read as they both advise ditching & switching as both suppliers are still expensive for gas even after the 5% price cut.

Use a comparison site to find the best deal for you today.
(Actually worth waiting 'til Tuesday if possible to see if the MSE Collective switch offers a good deal for you ... but you need to be signed up in advance to even be offered it)
Don't worry too much about the fact it may be a fixed tariff. As CashStrapped says there may be no early exit fees if you then discover an even better deal elsewhere ... but even if there are then they can often be neutralised by the cashback offerings available by switching.