Outfox the market variable rate

greenguppie

Norman_Castle said:

greenguppie said:

Norman_Castle said:

greenguppie said:

Not sure why people who doggedly remained on variable tariffs, or worse still, allowed themselves to be rolled onto their suppliers SVT, are now surprised that their prices are going up.
https://forums.moneysavingexpert.com/discussion/6296857/zog-variable-or-fixed

I'm not surprised prices are going up, I'm questioning why their variable rate is cheaper than their fixed.

Because it is capped by Ofgem?

I know, my question was answered in my thread that you linked to.

I'm confused.

The last post in the thread I linked to was at 1.31pm today by you

You posted your question in this thread at 1.56pm.

CaptainWales

Just checked and the OFTM rate emailed to me still comes out cheaper than any fixed rate I can get now. So, should I stick with this?

So much talk about prices increasing by £100's and to switch to fixed rate, but not sure it's worth it for me. Feel like I'm missing something though, what's the catch?!!

greenguppie

CaptainWales said:

Just checked and the OFTM rate emailed to me still comes out cheaper than any fixed rate I can get now. So, should I stick with this?

So much talk about prices increasing by £100's and to switch to fixed rate, but not sure it's worth it for me. Feel like I'm missing something though, what's the catch?!!

Essentially 2 catches as I see it.
1. You will be paying significantly more whichever option you take compared to what you could have fixed with even last month.
Gas wholesale price graph


2. In 6 months time, who knows how much more you will have to pay, unless you fix now?
Perhaps if I tell you futures for Mar 2022 are currently priced at 169p that will help?
You can see from the above graph how that compares to what it was a month or so ago (which is also when the Oct price cap was set)

Usual warning applies over potential for prices to rise or fall, and that past performance is not a reliable guide to future performance.

On a positive note, you will probably use more gas over the next 6 months , than you will in the period 6-12m from now

savers_united

greenguppie said:

CaptainWales said:

Just checked and the OFTM rate emailed to me still comes out cheaper than any fixed rate I can get now. So, should I stick with this?

So much talk about prices increasing by £100's and to switch to fixed rate, but not sure it's worth it for me. Feel like I'm missing something though, what's the catch?!!

Essentially 2 catches as I see it.
1. You will be paying significantly more whichever option you take compared to what you could have fixed with even last month.
Gas wholesale price graph


2. In 6 months time, who knows how much more you will have to pay, unless you fix now?
Perhaps if I tell you futures for Mar 2022 are currently priced at 169p that will help?
You can see from the above graph how that compares to what it was a month or so ago (which is also when the Oct price cap was set)

Usual warning applies over potential for prices to rise or fall, and that past performance is not a reliable guide to future performance.

On a positive note, you will probably use more gas over the next 6 months , than you will in the period 6-12m from now

I think alot of people are in the same boat having to make this call between fixing and paying higher now but avoid future hikes or stick with a lower variable now and hope that prices ease come the end of winter, I am sticking with ofgem cap tracker which basically guarantees to be at least £50 below the cap for Gas and a smart tariff for my electric which is fixed for 12mths.

It's alot cheaper for my gas than fixing as we go into the winter season with higher gas usage, if prices of gas increase again at the next Ofgem cap review in March then its impact should be less in the warmer months.

Just hope I have called it right 

CaptainWales

Thanks. Bit of a gamble which ever option I choose, suppose bit less of a gamble with fixed tariff.