End of contract - fix or variable rate?

shomk

I'm coming to the end of my fixed contract which at £75 a month is about to double!

I could stay with my current company as there doesn't appear to be anything cheaper.

If I fix I am looking at £135 a month (2 year, no exit fee), if I go onto the variable rate (for which it is quoting from 1st October) it will be £117 a month.

Seems a no brainer to go onto the variable rate but, also too easy.... No exit fee is also great as I could switch again, but a lot more per month right now...
If I go on the variable rate am I only saving money now to pay it out again should the cap increase again in April?

Need a crystal ball! 

Thanks

MWT

Personal choice, but if the fix is only an extra £18 I would be strongly inclined to take that if you can afford it.

Far too much uncertainty around the next change in the cap in 6 months time and with no exit fee it leaves you free to change again at any point if there is a better option.

It amounts to an £18/month insurance against what happens in the next few months...

shomk

Thanks. I guess the variable rate could go above the fixed rate and then I'd have to put up or try and fix at a potentially higher rate than now.

Crdw

As long as you are using your actual usage in kWh to calculate the costs, not going by estimated or "average" expenditure.

Streaky_Bacon

Gas or electric or dual fuel? I ask because the April change in cap will have a bigger short term impact on electricity rather than gas (gas usage being much higher in the winter).

Which supplier is it, and what are the unit rates and standing charge being quoted?

shomk

Streaky_Bacon said:

Gas or electric or dual fuel? I ask because the April change in cap will have a bigger short term impact on electricity rather than gas (gas usage being much higher in the winter).

Which supplier is it, and what are the unit rates and standing charge being quoted?

Eon Next

Variable - Gas= 4.17 / stand. 26.12             Electricity = 20.68 / stand 24.11

Next 2 yearv7 -  Gas = 4.84 / stand 48.22          Electricity = 23.46 / stand 46.21

The monthly payment has actually jumped from £135 to £145 since yesterday!!

shomk

Crdw said:

As long as you are using your actual usage in kWh to calculate the costs, not going by estimated or "average" expenditure.

I have used kwh not ££