Energy Switch - Two Year Fixed?

hardpowered

Hi all

I'm in a bit of a sticky situation with money since losing my job last month, so I'm doing what I can to save money - given the current situation with energy that's the first thing I'm looking at.

I've used the MSE Energy Club service and e.on seems to be my best bet as it's the cheapest and I can fix it for a year. Having checked their website however there is a slightly more expensive one which fixes for two years, and I'm wondering what your opinion is on what I should do?

Current Usage

Gas - 2961 kWh/year
Electricity - 4682 kWh/year

MSE Energy Club suggests the following tariff:

Next Online V7 - fixed for one year

Gas
3.85p per kWh
Standing Charge: 19.27p per day

Electricity
20.69p per kWh
Standing Charge: 17.19p per day

The one I found on the e.on website when I was looking to switch as per above:

Next 2 year v5 - fixed for two years

Gas
3.85p per kWh
Standing Charge: 26.12p per day

Electricity
20.69p per kWh
Standing Charge: 24.04p per day

So the only difference is the standing charge - this would be about £4 extra per month, or ~£50 per year.

Based on your experience and predictions, what would you do? I'm concerned the gas and electricity prices will continue to go up over the next 1 - 2 years, so perhaps I'm better off fixing for two years? There's no exit fee so I can switch when I want I believe? 

I assume fixed rate means exactly that, even if the price cap goes up I can't be charged more than the above figures?

All help appreciated!

Thanks

P.S I'm currently with Igloo on the Pioneer tariff.

QrizB

Whether you take a 1-year fix or a 2-year one depends on what you guess will happen to tariffs in October 2022. Heads you win, tails you lose. And yes, fixed means the price per kWh and the standing charge won't change for the duration (but if you use more or less energy your bill will move up or down; it's not like an all-inclusive mobile phone contract).

You should be able to get the same tariffs (identical, and supplied by E.ON Next) through Sainsburys Energy with additional free Nectar points worth £60. You might need to apply direct on Sainsbury's website rather than through the Cheap Energy Club.