Energy costs increases - worth fixing now for 2 years?

howryoo

As titled, is it actually worth fixing now for 2 years?

With my usage, I've calculated it it may cost me around £100 more over two years IF everything remains equal (no more price rises with current provider vs fixed with another provider).

I suppose it's 'how long is a piece of string' scenario, but what are energy markets likely to be over the next two years?

Likely to fall much in the next 12 months - negating the £50 loss in the first year (recouping from month 13)?

niktheguru

No one really knows the answer to this question. It looks like prices are rising at least for the short term. There are some rumblings it may plateau and might decrease slightly in 2 years but in reality its just a guess

I would certainly fix for at least a year.
Fixing for 2 depends upon how risk averse you are, how much more it is compared to 1yr fix and what the early exit fees are incase prices plummet.

Good luck.

Robin9

I've just gone for a 3 year fix . 

howryoo

Thanks for your replies.  Guess I'll need to do some thinking in the next few days....

t1redmonkey

I was wondering this as well since my fixed tariff ends next month.  One of the cheapest ones for me currently is a 2 year fix with no early exit fees, so will probably go for that (but it's still over £100/year more than my current one so not ideal).  At least I can switch easily in the next 2 years if there is a big drop in prices then.

Bacman

Prices only go up so taking a fixed rate tariff is wise if you get a good rate, variable rates will cost you more.

spot1034

Bacman said:

Prices only go up so taking a fixed rate tariff is wise if you get a good rate, variable rates will cost you more.

Prices don't only go up, and having seen them rocket skywards in recent months it's inevitable that at some point they will pause and quite likely fall back to some extent. That's almost guaranteed - the only unknown is how much further they will go up before this happens, and whether they will fall back to the extent that you would look foolish for fixing for an extended period right now. 

QrizB

Bacman said:

Prices only go up so taking a fixed rate tariff is wise if you get a good rate, variable rates will cost you more.

I was looking back at some old bills. You can't say "prices only go up".

In 2012-2016 I was paying more per kWh for gas than I will be on the 24-month fix I'm about to join.

tghe-retford

spot1034 said:

Bacman said:

Prices only go up so taking a fixed rate tariff is wise if you get a good rate, variable rates will cost you more.

Prices don't only go up, and having seen them rocket skywards in recent months it's inevitable that at some point they will pause and quite likely fall back to some extent. That's almost guaranteed - the only unknown is how much further they will go up before this happens, and whether they will fall back to the extent that you would look foolish for fixing for an extended period right now. 

I think they are referring to the idea that each company only raises prices, not lowers them. It's a cynical viewpoint but I have known it to be the case for a number of bills. If you switch to another, cheaper supplier, then it will be the case that for you, prices will have gone down.

fleemkt

t1redmonkey said:

I was wondering this as well since my fixed tariff ends next month.  One of the cheapest ones for me currently is a 2 year fix with no early exit fees, so will probably go for that (but it's still over £100/year more than my current one so not ideal).  At least I can switch easily in the next 2 years if there is a big drop in prices then.

This wouldn't happen to be Octopus would it?

So you could go for their 2 year fixed rate tariff, but leave during that time without penalty?

I'd have thought you're signed up to a 2 year contract?

bristolleedsfan

fleemkt said:

t1redmonkey said:

I was wondering this as well since my fixed tariff ends next month.  One of the cheapest ones for me currently is a 2 year fix with no early exit fees, so will probably go for that (but it's still over £100/year more than my current one so not ideal).  At least I can switch easily in the next 2 years if there is a big drop in prices then.

This wouldn't happen to be Octopus would it?

So you could go for their 2 year fixed rate tariff, but leave during that time without penalty?

I'd have thought you're signed up to a 2 year contract?

May well be Octopus, however both EDF Direct and E.ON Next Direct do 2 year fixed rate with no exit fees, cheaper than Octopus despite both having increased rates last week ish ............EDF Direct last time I looked was fixed until March 2024 with no exit fees