Length of Fix vs Cost Savings

sbradnam

I am coming to the end of a 3-year fix for dual fuel, which has been very good, but I am unsure how long to fix for in my next contract.

The "crossover" point was at about the 14 month point for this 3-year fix - ie when actual prices on variable tariffs overtook my fix price - so I was getting a better deal for about 60% of my fix (bearing in mind I had "overpaid" in the early phases.

So my dilemma is whether to fix for one year, 2 or 3 - longer fixes are more expensive, and may not be cheaper in the long run - I have not done the detailed maths, and wonder if there are any ninjas who have done the analysis!

Many thanks

Stuart

Neil_Jones

The general consensus is that energy prices will continue to rise for the foreseeable future but nobody has a crystal ball, if they did we wouldn't be sitting here writing this!

Remember that you can always leave the tariff you go to (unless its business) subject to exit fees. It may well be that a great deal comes along in the future that saves you money even if it means paying £30 to exit a three year fix.

A 1yr fix may be worth it in the short term, to see where things go. Remember longer fixes tend to factor in expected rises in other areas, not just the cost of the energy itself.