Variable rate or Fixed?

Leanne72

Hello, I am with EDF for gas and electric and they are currently offering me a variable rate at £56 being 20.77p for electric and 4.187p for gas. If I was to choose a fixed rate for 2 years with them it is £66 per month at 24.07p for electric and 5.563p for gas. 

I am thinking I will just stick with the variable rate until the increase next March as this will get me through the more costly heating period of the year. 

Is this unwise? 

Many thanks. 

alleycat`

You've established the basic facts of the matter.

Most available fixes are now "above" the price cap.

On that basis standard variable rate tariffs on a per kwh basis are "cheaper".

The rest is down to if you believe the statement caps won't be reviewed again until March/April time and your view on risk.

Personally I'm with one of the suppliers who "may" go bust.

Under the scenario that happened and i ended up on a SoLR i'd, personally, sit on the SVR and see how it shakes out closer to April.

Edited: Just to add it may be worth checking to see which SVR rate is cheaper for your area as there will be some minor variance from supplier to supplier area to area. Obviously there's cost for your time in doing so and you may find that the value of that time used isn't worth it (but it's an option).

jimjames

Seems sensible to me. That's what I'm doing