Variable Tariff, worth doing?

suestew

Hi all,

Just looking at saving some money as my Scottish Power's fixed tariff is coming to an end?

I am in the cheap energy club and looking at recommnedatoins that not only save you money but have good reviews.

My question is are variable ones worth going for? I mean do they ever go down?

Cardew

suestew wrote: »

My question is are variable ones worth going for? I mean do they ever go down?

The 12 month fixed tariffs are usually cheaper than the variable tariffs and many have no penalty for leaving early, or just a small penalty. So most of the astute contributors here would not go for a variable tariff.

Norman_Castle

Would the astute contributors go for 12 months fixed @ 12.6 p/2.8295 or 24 months fixed @ 12.6p/2.9753 ?

What would Mystic Meg do?

Neil_Jones

Norman_Castle wrote: »

Would the astute contributors go for 12 months fixed @ 12.6 p/2.8295 or 24 months fixed @ 12.6p/2.9753 ?

What would Mystic Meg do?

Depends whether you think prices are due to rise in the next two years.
If they do and you locked in and you ultimately end up on what turns out to be a dirt cheap tariff, you'll be quids in.

If prices fall and you don't have exit fees, just switch. Not a problem. With exit fees you will probably to have to decide whether paying 10/20/30 pounds to leave is worth it on the savings of the next tariff.

macman

Fixes are not necessarily cheaper. You are effectively buying insurance in that you know exactly what you will be paying for x months ahead.

phillw

Norman_Castle wrote: »

Would the astute contributors go for 12 months fixed @ 12.6 p/2.8295 or 24 months fixed @ 12.6p/2.9753 ?

What would Mystic Meg do?

Mystic Meg would be raking in the cash from her fake predictions and not care about her energy bill.

Normally it's a gamble which you would either take the longest cheap fix and forget about it, or study form and make predictions. However I would avoid any fix that ends just after article 50 negotiations are due to end.

Cardew

Norman_Castle wrote: »

Would the astute contributors go for 12 months fixed @ 12.6 p/2.8295 or 24 months fixed @ 12.6p/2.9753 ?

What would Mystic Meg do?

Depends also on the Daily Standing Charge and penalty charge for early termination.

Having consulted Mystic Meg she tells me that the 24 months fioxed is the best option and that Spurs are a certainty to win the Premier League next year.

Norman_Castle

Cardew wrote: »

Depends also on the Daily Standing Charge and penalty charge for early termination.

Both 12.6p and £30 exit fee. Currently with Zog on a 12 month fixed ending soon. I can get it £19 p.a cheaper with Solarplicity but prefer to stay with Zog as they've been hassle free.

Mystic Norman predicts prices will go up or down although some may stay the same.

footyguy

suestew wrote: »

Hi all,

Just looking at saving some money as my Scottish Power's fixed tariff is coming to an end?

I am in the cheap energy club and looking at recommnedatoins that not only save you money but have good reviews.

My question is are variable ones worth going for? I mean do they ever go down?

Variable tariffs can go up or down
Capped tariffs cannot go up (beyond the cap) but may go down
Fixed tariffs will not change over term agreed.

Nothing particularly wrong with a variable tariff. Years ago we were all on them
You will be given notice of any price change, and any adverse change (increase) will only apply after a notice period (typically about 4-6 weeks)
If you change supplier because of such notice, you will usually remain on the existing prices until the switch occurs (assuming it occurs in a timely manner)

The only thing to be aware of is that tariffs change all the time, and a fixed tariff available today may not be availale tomorrow.

teddysmum

I remember, some years ago, when Martin Lewis was in his early days on tv and encouraged people to fix long term.


I took a one year fix only and was very pleased about that, as, for once,prices did drop.


I don't think there will be much of a drop in future, as, though wholesale prices may go down, the government will have some kind of scheme that really must be funded. (wind farms that don't need wind or meters that are smarter than smart meters).