Which tariff to choose, flexible or fixed?

javixeneize

Hi

im currently under a flexible octopus tariff but I’m reading the prices will go up like crazy in the next month

At the moment the flexible estimated bill is around £250 cheaper than a fixed plan but if the prices soar as much as the media is saying, getting into a fixed plan now might be cheaper in the long term

what are your recommendations on this? Stay on the flexible plan or move into a fixed plan to be protected against higher prices?

thanks

spot1034

Suppliers will be hoping to tempt customers in to long term fixes on the grounds that when this price spike eases (as it will) some will just shrug their shoulders, do nothing  and keep over paying, whilst others will bail out early and pay an exit fee. Some longer fixes are presently cheaper than shorter ones, and that must be a huge temptation but my own view is that it will turn out to be a mistake. However, I might be wrong. 

bristolleedsfan

javixeneize said:

Hi

im currently under a flexible octopus tariff but I’m reading the prices will go up like crazy in the next month

At the moment the flexible estimated bill is around £250 cheaper than a fixed plan but if the prices soar as much as the media is saying, getting into a fixed plan now might be cheaper in the long term

what are your recommendations on this? Stay on the flexible plan or move into a fixed plan to be protected against higher prices?

thanks

Stay on flexible for gas if you have gas as Octopus fixed gas kwh rate is now 24% above SVR October 1st  kwh energy cap, that equates to two more huge energy gas kwh cap rises 1 April 2022 and 1 October 2022 paid this coming winter

Electricity if you have a smart meter would save a lot by changing to Octopus go, otherwise Octopus 2 year fixed rate E is about the same as October maximum kwh cap level, changing to 2 year fixed just for E would protect against any further cap increases, tariffs can be split G on flexible, E on fixed, you would need to contact them to split tariffs if you have dual fuel

Or switch elsewhere Ovo 2 year fixed featured in latest MSE newsletter as did Sainsburys Energy 1 year fixed + no exit fees,.Eon Next and EDF direct 2 year+ fixed no exit fees worth a look also has no exit fees, currently loads cheaper than Octopus standard fixed rate tariffs for dual fuel

Octopus Energy earlier flexible variable tariffs are cheaper than later versions as they have not been passing on all increases to earlier versions

Malchester

I am currently with British Gas Evolve with my 12 month fix coming to an end. Unfortunately their prices are now very high (even higher that the main British Gas prices) which says something about the reason they were set up - to provide an online only service which keeps prices down. I am not sure it does as contacting them by webchat takes ages compared to a quick phone call). I am switching to EDF on a 3 yr fix (which is £10 a month cheaper than their 2 yr fix) and with low exit fees. I reckon I can save a good amount over the first year alone so that, if prices do tumble, I can bail out with low exit fees knowing I have still saved. If prices remain high, or go even higher I am OK

bristolleedsfan

Malchester said:

 I am switching to EDF on a 3 yr fix (which is £10 a month cheaper than their 2 yr fix) and with low exit fees. I reckon I can save a good amount over the first year alone so that, if prices do tumble, I can bail out with low exit fees knowing I have still saved. If prices remain high, or go even higher I am OK

Energy Direct fixed until March 2024 with no exit fees, SC and kwh rates appear to be identical to 3 year fixed rate tariff that has exit fees, both Electricity and Gas cheaper than Octopus 2 year fixed rate, Gas is below 4pkwh compared with Octopus 5p +

boliston

i have always preferred variable as you can then easily switch if there is a price hike - i tend to avoid any tariff that has exit fees or front loaded dd

Malchester

bristolleedsfan said:

Malchester said:

 I am switching to EDF on a 3 yr fix (which is £10 a month cheaper than their 2 yr fix) and with low exit fees. I reckon I can save a good amount over the first year alone so that, if prices do tumble, I can bail out with low exit fees knowing I have still saved. If prices remain high, or go even higher I am OK

Energy Direct fixed until March 2024 with no exit fees, SC and kwh rates appear to be identical to 3 year fixed rate tariff that has exit fees, both Electricity and Gas cheaper than Octopus 2 year fixed rate, Gas is below 4pkwh compared with Octopus 5p +

Yes. Energy Direct relies on a mandatory smart meter while 3 yr fix doesn't.