Fix prices for 12M or 24M?

jonnypb

Currently with Octopus and looking to switch now.  With the price hikes do people think it's best to switch for 12M or 24M? 

With the 24M fixed prices the daily charges are higher, but it could be beneficial in the long run if costs continue to rise for the next 12 months?  Neither tariff has an exit fee so if prices do come down next summer I can always switch.

Current Sainsbury offer, which appears to be the same as EON and the cheapest for me, is as follows

12 month fixed
Gas 19.27 per day, 3.83kWh
Elec 17.53 per day, 19.27kWh

24 month fixed have the same cost for usage, but gas is 26.12 per day and electric is 24.38

Also if I went for a 24M fixed with no exit fees, does that mean I could move part way into the 24M contract if prices were suddenly significantly cheaper with a different supplier?

Thanks

Malchester

I have just come to the end of a 12 month fix with British Gas Evolve and found it difficult to decide what to do. BG Evolve's fix for one year was very expensive compared to others. In the end I went for EDF 3 yr fix to Sept 24 which was less than their 2 yr fix. That shows where they expect prices to go, although just after I applied for a fix their prices shot up £20 a month (for my usage) so glad I got in when I did. The exit fees are £15 per fuel. I reckoned that it was worth risking it because at least over the first year I would be quids in and if, by any chance, prices fall during the coming 12 months I could switch out without much cost I would still have saved over 12 months. It all depends on where prices go in the short, medium and longer term which is a finger in the air job. My guess is that certainly after 3 years they will be lower than they are now, but I could easily be wrong.

As for switching. If there are no exits fees you can switch at any time. That's what I did with BG Evolve (as they had no exit fees) and I am glad I did.

RecoveringAndy

The 24M fix will cost you an extra £50 over the first 12 months so you're effectively hedging your bets that prices will rise for the second year by that much.

Yes, with no exit fees, you could switch to another supplier / tariff if prices come down.

Generally, I've always taken a longer fix over a shorter one but there may be an argument that prices to fix will have spiked particularly badly at the moment so it might be a bad time to do so.

Your mileage may vary, I'd be tempted by the 24M with EON

n15h

Octopus has informed that their fixed tariff for Gas for 12m or 24m is going to be 5.61p/kWh and standing charge of 26.10p! The only good thing with Octopus at the moment is no exit fees and you can switch to a cheaper tariff if the prices drop in the next 12-18m, instead of £15 cost with EON. 

Just depends if EON is cheaper than Octopus when you fix, and as long as you make more than £15 saving by fixing with EON, then it makes sense to move to them and switch when prices drop (seems like a long 18-24m before that may happen).

jonnypb

RecoveringAndy said:

The 24M fix will cost you an extra £50 over the first 12 months so you're effectively hedging your bets that prices will rise for the second year by that much.

Yes, with no exit fees, you could switch to another supplier / tariff if prices come down.

Generally, I've always taken a longer fix over a shorter one but there may be an argument that prices to fix will have spiked particularly badly at the moment so it might be a bad time to do so.

Your mileage may vary, I'd be tempted by the 24M with EON

Yeah I'm thinking that prices have spiked particularly bad at the minute so was edging towards the 12M one, but I guess we just don't know.  The EON and Sainsbury's seems to be the best deal at the minute, same price but you get the nectar points with Sainsburys.  Might go for the 24M one as you also get 12,000 nectar points which are worth £60, or £120 with the double up event that happens in Nov and that would offset the extra £50 in the first 12 months.

Gary1963

I've gone for 24 months with Sainsbury's. No exit fees plus the nectar points

KEROUAC

I also went for the 24 month option. Seems pretty good with no exit fees.

bristolleedsfan

n15h said:

Octopus has informed that their fixed tariff for Gas for 12m or 24m is going to be 5.61p/kWh and standing charge of 26.10p! The only good thing with Octopus at the moment is no exit fees and you can switch to a cheaper tariff if the prices drop in the next 12-18m, instead of £15 cost with EON. 

Just depends if EON is cheaper than Octopus when you fix, and as long as you make more than £15 saving by fixing with EON, then it makes sense to move to them and switch when prices drop (seems like a long 18-24m before that may happen).

E.ON Next/Sainsburys Energy have no exit fees, 2 year fix gas 3.83p per kWh  E 19.28p per kWh subject to regional differences, standing charges similar, Octopus  2 year E rate 23.72 p/kW

pearl123

I'm in the middle of a fixed tarrif deal with Avro. If I moved to a fixed deal with Sainsburys, how easy would it be to get my credit back. I'm close to £200 in credit with Avro. 

bristolleedsfan

pearl123 said:

I'm in the middle of a fixed tarrif deal with Avro. If I moved to a fixed deal with Sainsburys, how easy would it be to get my credit back. I'm close to £200 in credit with Avro. 

Nobody can say when you will get it back or who will repay the credit merely that you will get the credit back

manic37

bristolleedsfan said:

n15h said:

Octopus has informed that their fixed tariff for Gas for 12m or 24m is going to be 5.61p/kWh and standing charge of 26.10p! The only good thing with Octopus at the moment is no exit fees and you can switch to a cheaper tariff if the prices drop in the next 12-18m, instead of £15 cost with EON. 

Just depends if EON is cheaper than Octopus when you fix, and as long as you make more than £15 saving by fixing with EON, then it makes sense to move to them and switch when prices drop (seems like a long 18-24m before that may happen).

E.ON Next/Sainsburys Energy have no exit fees, 2 year fix gas 3.83p per kWh  E 19.28p per kWh subject to regional differences, standing charges similar, Octopus  2 year E rate 23.72 p/kW

Which EON/Sainsburys fix out of 12M/24M/36M do you recommend?