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To fix for 12 months or 30 months

rjmachin
rjmachin Posts: 371 Forumite
Eighth Anniversary 100 Posts Name Dropper
My energy fix is coming to an end soon with Avro, which is currently costing me £130 (approx) a month for Gas and Electric. I got this deal at a great time when prices were at the lowest seen.

It ends on 8th April, and at the moment, I'm looking at a minimum of a £20/25 at month increase, with the cheapest now around £150-155 for a fix.

Avro is £155 at the moment, which is the easiest option as it's just a tariff switch.

However, I am in two minds over whether to look more towards the future, where it seems unlikely that prices will go down significantly. So looking at longer term fixes, Quest energy currently have a 30 month fix, up to September 2021, which is currently showing as £170 a month, so would be an increase of £40 a month from my current prices.

My thoughts are:
1) should I take the hit now, with a view to saving in the long term
2) Will energy prices increase by this much, if not, I will be paying a lot more than needed
3) If Quest goes out of business in the next 12 months, I will have been paying higher prices for no gain

Your thoughts would be greatly appreciated, what would you do in this scenario?

Comments

  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    A similar dilemma is faced by most of us at some time; it is like guessing who will win the 2:30 at Epsom.


    Assuming the Avro fix is for 12 months, compared with Quest you will have saved £180 over the term of the tariff. So that would be my choice.


    Mind you the Brexit debacle adds another unknown factor!
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