Switch now or wait til July?

someanonbloke

Hi, what's people's advice here? I keep hearing contradictory things.
Some say energy prices will decrease as we get nearer the summer
whilst I've heard from BBC and Guardian that prices will rise.

I'm with Avro but there are cheaper options presently available.

Should I grab the best offer now or wait a bit? (Avro don't charge an exit fee.)

Cheers.

[Deleted User]

Nobody knows the answer.
If they did, they wouldn't be on this forum but on the energy futures market making a fortune.

Have a look at the OFGEM understanding your energy bill and you will see that the wholesale energy costs make up less than 40% of the total bill. (39% for gas , 33% for electricity)
Where the BBC and others talk of energy costs, they tend to be only talking about the wholesale cost. So given how little of what we pay is for the wholesale part, it would take a massive price drop/increase to really effect the amount you and I pay.

https://www.ofgem.gov.uk/consumers/household-gas-and-electricity-guide/understand-your-gas-and-electricity-bills

Benight

someanonbloke wrote: »

Hi, what's people's advice here? I keep hearing contradictory things.
Some say energy prices will decrease as we get nearer the summer
whilst I've heard from BBC and Guardian that prices will rise.

I'm with Avro but there are cheaper options presently available.

Should I grab the best offer now or wait a bit? (Avro don't charge an exit fee.)

Cheers.

My advice would be that if you can save money today (after taking into account any early exit fees if applicable) by switching, then switch
(as long as you are happy with the terms)

Everyday you delay waiting for a possible lower price that may or may not come, you are wasting money.

Repeat as appropriate.

With typical early exit fees (if applicable) often being able to be offset by around 50% with a cashback, then it comes down to about £25-£30 'penalty' at worst for switching early. i.e about the minimum saving required to make the time & effort of switching worth it.

[Deleted User]

Possibly one idea would be to switch to Bulb ( with a friends referral fee of £50 cashback ) who run only one variable tariff and its quite a low one compared to any of the big 6.
With that referral fee you would be close to the best rates available with fixed deals with unreliable here today gone tomorrow suppliers and no exit fees if you see an astoundingly low deal in the summer
Once you join Bulb, you too could pick up a few £50 referral fees to your friends