Newbie; FIXED OR VARIABLE?

katie4

Morning all,


we have always been with swalec for our energy and have not really looked into switching before as I didn't know how, seemed complicated to me, but I'm looking now as SSE are increasing there prices as we are on a variable rate, we always seem to owe on our gas.
I am just wondering which is best variable or fixed? any other ideas welcome thanks

JJ_Egan

Price drops then variable .
Price rises then fixed .
Personally just fixed for two years .

katie4

JJ_Egan wrote: »

Price drops then variable .
Price rises then fixed .
Personally just fixed for two years .

Thank you, this may be a silly question but as we owe on the gas atm what would happen if we owed on a fixed? or is that not possible as its fixed?:o

alleycat`

katie4 wrote: »

Thank you, this may be a silly question but as we owe on the gas atm what would happen if we owed on a fixed? or is that not possible as its fixed?:o

The terms Fixed or Variable refer to the amount each "unit" of gas or electricity cost.


If the unit is a fixed price for a year it will always be (as an example) "3p" per unit.


A Variable tariff that cost per unit can go up and down at any point in time.
So for 6 months it could be "2.5p" and for the next 6 months it could be "4p".


Fixing is hedging against Gas and electricity unit price rises in any given time frame.



The term fixed doesn't mean it's "all you can eat" for a price per month.


If you under pay each month it doesn't matter if you're on fixed or variable you will still get a catch up bill.

System

Choose a supplier like Octopus ( which has excellent reviews and a Which endorsement) and you can get a fixed tariff without exist fees. If you use a referral link, you can also get £50 off the total cost.

Please note @AlleyCat's advice. The term 'fixed' is misunderstood by many. The only things that are fixed are the contract term; the unit price and the upper limit of the standing charge. If there are any discounts offered these are deducted from the standing charge. If a consumer breaches the terms of a fixed contract, then the discounts may well be removed (look at ts and cs) and the standing charge will increase.

JJ_Egan

Yes agree 100% so many misinterpret fixed .

AndyPK

Standard variable tarrifs are usually the most expensive.


So find yourself a fixed deal that costs less.


Usually best to fix for 1 year.
2 year fixes can sometimes be good for low users.


use this to find a good deal for you.


https://www.moneysavingexpert.com/cheapenergyclub

Robin9

Your first move should be to get your Swalec account in balance - otherwise Swalec may block any move.

You say you have always been with Swalec - have you changed tariffs with them over the years ? Your monthly/quarterly account will tell you if they have a better tariff.

The general advise is always to read your meters at least monthly and submit them online.

katie4

Robin9 wrote: »

Your first move should be to get your Swalec account in balance - otherwise Swalec may block any move.

You say you have always been with Swalec - have you changed tariffs with them over the years ? Your monthly/quarterly account will tell you if they have a better tariff.

The general advise is always to read your meters at least monthly and submit them online.

Thanks no we have always been on the standard tarrif since we moved on 5 years ago.
I will look and see what options are available thanks

Robin9

katie4 wrote: »

Thanks no we have always been on the standard tarrif since we moved on 5 years ago.
I will look and see what options are available thanks

Do let us know what the savings are.

Smodlet

In a word, fixed. Prices are rising. Five out of the big six have just increased their Standard Variable Tariffs. Use comparison sites, find the cheapest for your area and fix. If you can get cash back either through the CEC on here or via cashback sites/referrals, do it. Snooze, lose.