Current fix expires end October. When to take out new fix?

sec79

Hi, my current 1 year fix with Avro Energy expires at the end of October. Would it be advisable to take out a new fix now, or wait until say the end of September please? My current fix has no early termination charges. I have been paying £33 per month, and the cheapest 1 year fix with a reasonably large firm (Sainsburys Energy) is going to be about £43 a month, 25% increase!

I'm not sure if firms have already put up their prices given the new price cap.

Thank you  in advance

Neil_Jones

You can take a fix whenever you like.  49 days before it ends is your switching window where any exit fees cease to apply.

Also you need to stop thinking in £s and start thinking in kWhs, as that's what you're charged by - your direct debit is just a contribution into a kitty.

spot1034

In theory, if you have a much cheaper deal which still has several weeks to run it makes sense to hang on as long as possible, the counter argument being that what's available now might not still be there if you hold off for a few weeks. I think I'd take the chance and stay put until the last moment but it's largely a guessing game. I'd say there is likely to be a fair amount of comment in the media over the coming month about rising energy prices which will, in theory at least, result in more people searching for a new deal and some of the larger suppliers might put out some attractive short term offers to take advantage and increase their market share. Once again, that's just a guess.

jbuchanangb

Calculate your kWh for gas and for electricity for a whole year using the readings now and 12 months ago. Use these numbers in comparison sites. You need to run 3 comparisons, gas only, electricity only and dual fuel. Run each comparison once a week for about 3 weeks and keep notes. You should get a feel of which suppliers and which tariffs are looking best for you. When you spot the right deal(s), go for it shortly after the 49 day threshold passes. Sooner if you current tariff has no early termination charges.

BUFF

spot1034 said:

 some of the larger suppliers might put out some attractive short term offers to take advantage and increase their market share. Once again, that's just a guess.

e.g. https://www.theguardian.com/business/2021/aug/27/british-gas-to-delay-rise-in-standard-tariff-direct-debits-until-next-year
Of course they may well still be dearer than some other suppliers.

[Deleted User]

My advice - as soon as you can. This time last week a 2 year gas fix with Zog for my region was 3.19p/kWh: today the unit price is 3.7p/kWh.