2 year fix

System

Do the maths. When the wholesale price of gas and electricity accounts for less than 40p in every £1 on your bill then the rationale for going for a long fix is debatable. If the wholesale cost of gas doubled overnight, your bill would only increase by 20%. The one ‘given’ is that suppliers will never offer a fixed tariff that they think will lose them money. When I looked at a 2 year gas deal a couple of months ago, the wholesale cost of gas would have had to rise by 30% in Year 2 to make the deal worthwhile. (Based on my usage and postcode)

wiseonesomeofthetime

I have taken the plunge and switched to a two year Ovo fix rather than a one year fix with Avro and, with the cashback, it actually should work out cheaper based on similar use age to last twelve months.

Fingers crossed.

Blackbeard_of_Perranporth

I nearly fell for this, but banged out. My current SP deal runs to Dec 18 and this was marginally more. Then I checked the scam small print. I am going to pay £30 to exit should prices fall as they call this tariff jumping.
My current supplier allows me to do this free of charge, although I have not done so since October 16!


AVOID

polymaff

Blackbeard_of_Perranporth wrote: »

I nearly fell for this, but banged out. My current SP deal runs to Dec 18 and this was marginally more. Then I checked the scam small print. I am going to pay £30 to exit should prices fall as they call this tariff jumping.
My current supplier allows me to do this free of charge, although I have not done so since October 16!


AVOID

What you rant a "nearly fell for" "scam small print" to "AVOID", the rest of us call clearly-declared terms and conditions to be read and understood before entering into a contract.

Swan1305

Still undecided whether to go with a 1 year deal with Avro or a two year with Ovo. Can't see the energy market prices rising hugely in the near future - in fact I would hope there would be a drop...watching this thread with interest to see what others think.

bobstheboy

I have had fixed contracts for a few years, but my BG was finishing and I could not find a stand out alternative. I therefore went with Bulb, no contract, no exit fees and a price I was happy with. I will keep a keen eye on the offers that may come out and if any take my fancy I'll switch.

Haffiana

I am also pondering whether to go for Bulb or OVO. Bulb is currently looking £100 a year cheaper. I am a high user. I simply do not know whether Bulb will go up more than £100 in the next year or two as it is not fixed.

JJ_Egan

If its not fixed then you give your required notice if a price rise is to much .

Haffiana

Yes obviously, but I am worried that I will miss out on this Ovo deal.

Bigphil1474

If energy wholesale prices go up, our bills will go up, if they go down, our bills might go down. Chances are they'll go up, like they have pretty much every year I can remember since we had the energy market, and even if they've gone down, the drop has been tiny compared to the increases.
You have to do the calcs. but the price rises earlier this year were around the 10% mark. Depends on the price difference between the 1 and 2 year fix, but also your finances. If you are happier knowing what you'll pay (assuming use remains the same) for the next 2 years even if it might be more expensive in year 1 with a hope of being cheaper in year 2, then a longer fix may be better.