So is everyone locking in Fixed Deals right now?

Mr.Boy

The latest MSE newsletter (https://www.moneysavingexpert.com/latesttip/ - sorry can't find the article on its own anywhere) paints a bleak picture about energy prices continuing to rise, but is mainly focused on those using standard tariffs and the caps in place... which presumably isn't the typical MSE user who knows about switching(?)

Our current fixed deal is expiring and the cheapest variable dual-fuel I can see is £550/yr more than I currently pay - a 25% increase. 
The cheapest fixed deals I can see are an additional £350 (1yr fixed) or £400 (2yr fixed). Clearly suppliers are expecting prices to rise and baking this in to their fixed deals, but it's tough to decide if it's worth paying an extra £400 a year! A variable tariff would have to on average increase £800/year before it's a worse deal... clearly providers don't offer these fixed deals to save you money, they do so to make money.

So, any thoughts? I haven't been following the energy market news so am totally out of the loop.

DiseasedBunny

I’d lock for 12m personally, though if it’s only an extra £50 for the 2 year fix, I’d be tempted by that to be honest 

Andrewzy

d000hg said:

The latest MSE newsletter (https://www.moneysavingexpert.com/latesttip/ - sorry can't find the article on its own anywhere) paints a bleak picture about energy prices continuing to rise, but is mainly focused on those using standard tariffs and the caps in place... which presumably isn't the typical MSE user who knows about switching(?)

Our current fixed deal is expiring and the cheapest variable dual-fuel I can see is £550/yr more than I currently pay - a 25% increase. 
The cheapest fixed deals I can see are an additional £350 (1yr fixed) or £400 (2yr fixed). Clearly suppliers are expecting prices to rise and baking this in to their fixed deals, but it's tough to decide if it's worth paying an extra £400 a year! A variable tariff would have to on average increase £800/year before it's a worse deal... clearly providers don't offer these fixed deals to save you money, they do so to make money.

So, any thoughts? I haven't been following the energy market news so am totally out of the loop.

What worries me about the latest MSE newsletter is that it says "My email bag is swamped with people angry and horrified as their cheap fixes set up a year ago are ending, and they're being asked to pay many £100s/yr more" and suggests that people who don't like this should write to their MP. Does this mean that fixed deals are, in effect, not worth the paper they aren't written on? I expect I'm missing the point but that's how it sounds. My cheapest fix is also about £500 over what we're now paying for two years but if that doesn't mean anything - if the supplier can just ignore fix and charge more - why bother? I'm sure I've missed an essential point but I don't have a lot of time to research this, all advice very welcome!

Mr.Boy

Andrewzy said:

What worries me about the latest MSE newsletter is that it says "My email bag is swamped with people angry and horrified as their cheap fixes set up a year ago are ending, and they're being asked to pay many £100s/yr more" and suggests that people who don't like this should write to their MP. Does this mean that fixed deals are, in effect, not worth the paper they aren't written on? I expect I'm missing the point but that's how it sounds. My cheapest fix is also about £500 over what we're now paying for two years but if that doesn't mean anything - if the supplier can just ignore fix and charge more - why bother? I'm sure I've missed an essential point but I don't have a lot of time to research this, all advice very welcome!

Unless I misread you, then you've missed the point that their fixed deals are expiring, not that suppliers are changing the price mid-deal?

ian16527

I had a very cheap deal fixed for 2 years that ended in June. I looked for a month before I needed to and the price was going up weekly. I ended up paying £18/mth more for another 2 year deal.
I think you have to accept that prices are silly now and get it fixed if you like the security for 2 years, but remembering it will more than likely increase by a fair bit when it ends.
Can you not use Quidco or similar to offset it a bit

y3sitsm3

Andrewzy said:

d000hg said:

The latest MSE newsletter (https://www.moneysavingexpert.com/latesttip/ - sorry can't find the article on its own anywhere) paints a bleak picture about energy prices continuing to rise, but is mainly focused on those using standard tariffs and the caps in place... which presumably isn't the typical MSE user who knows about switching(?)

Our current fixed deal is expiring and the cheapest variable dual-fuel I can see is £550/yr more than I currently pay - a 25% increase. 
The cheapest fixed deals I can see are an additional £350 (1yr fixed) or £400 (2yr fixed). Clearly suppliers are expecting prices to rise and baking this in to their fixed deals, but it's tough to decide if it's worth paying an extra £400 a year! A variable tariff would have to on average increase £800/year before it's a worse deal... clearly providers don't offer these fixed deals to save you money, they do so to make money.

So, any thoughts? I haven't been following the energy market news so am totally out of the loop.

What worries me about the latest MSE newsletter is that it says "My email bag is swamped with people angry and horrified as their cheap fixes set up a year ago are ending, and they're being asked to pay many £100s/yr more" and suggests that people who don't like this should write to their MP. Does this mean that fixed deals are, in effect, not worth the paper they aren't written on? I expect I'm missing the point but that's how it sounds. My cheapest fix is also about £500 over what we're now paying for two years but if that doesn't mean anything - if the supplier can just ignore fix and charge more - why bother? I'm sure I've missed an essential point but I don't have a lot of time to research this, all advice very welcome!

You're missing that MSE often includes completely irrelevant points in its articles to try and make mountains out of molehills and to whip its (less intelligent) readers into some sort of frenzy.

If someone is on a fixed deal they must have done so knowing that the alternative is variable pricing and that as variable pricing means prices can go up or down, it's hardly a surprise that prices might have risen between fixing and their deal expiring. If they aren't aware of that they're idiots.

I suspect, however, that it's a load of nonsense, much like their "moral dilemmas" that almost certainly are made up by MSE staff.

tux900

y3sitsm3 said:

If someone is on a fixed deal they must have done so knowing that the alternative is variable pricing and that as variable pricing means prices can go up or down, it's hardly a surprise that prices might have risen between fixing and their deal expiring. If they aren't aware of that they're idiots.

I must admit that I've been very surprised not that my energy costs are about to rise but by how much (42%) but perhaps I'm just proving your point and am therefore worthy of your 'idiot' label. I'm not angry though, just disappointed.

JJ_Egan

Two year deals in may this year just missing price increases .

Both fixed as in unit prices fixed something like an extra £30 pa  for the two year fix .

elsien

I looked at a 2 year fix but it was quite a lot more per year so I decided in the absence of a crystal ball to take the chance on sticking with 12 months. If the two year fix had been cheaper I would have gone with that. 

[Deleted User]

Energy prices have increased since the lockdowns of 2020 and early 2021. Anyone coming to the end of a fixed deal should expect to pay more: they may though be surprised by the percentage increase. Sadly, price comparison sites et al give the impression that there are savings to be made if consumers switch. The 'small print' that never gets mentioned is that any savings are set against the standard variable tariff which most likely will be much higher than the fixed tariff that the consumer was on. The Ofgem Cap has increased by well over £200 in the past year.

Fixed tariffs are fixed in terms of contract length; unit price and exit fees. The standing charge is fixed provided there is no breach by the consumer of the contract terms and conditions. Each tariff/contract has different terms and conditions.

I am really not sure what writing to one's MP would do. The price increases reflect the World-wide increase in the wholesale price of gas. Even poorly thought out schemes like BG's no increase in monthly DD payments doesn't get around the fact that energy used has to be paid for.

y3sitsm3

tux900 said:

y3sitsm3 said:

If someone is on a fixed deal they must have done so knowing that the alternative is variable pricing and that as variable pricing means prices can go up or down, it's hardly a surprise that prices might have risen between fixing and their deal expiring. If they aren't aware of that they're idiots.

I must admit that I've been very surprised not that my energy costs are about to rise but by how much (42%) but perhaps I'm just proving your point and am therefore worthy of your 'idiot' label. I'm not angry though, just disappointed.

But the people I labelled idiots appear to be surprised that they've gone up at all.  But even then, I'd hardly call it that surprising that they've gone up a lot.  It was clear the COVID slump in energy prices last year wasn't going to last forever.