Advise on choosing a company/tariff (Do I risk variable, or pay the price on a fixed rate)

billiebean

Hi, I'm due to come out of my dual fixed rate with So energy next month. The offer they now have for a 2 year deal is over twice as much as what I had been paying.That works out at £3,240 more over the 2 years. They also have a 1 year deal which is obviously more over the year than the 2 year deal and works out £2,148 more over the year but as not committed for a further year could (hopefully) be a saving if the prices go down for that 2nd year. Last of all they have a variable deal which is around £720 a year more but as we all know will be open to all price increases that we all expect over the coming years. Obviously none are giving me any savings and I didn't expect otherwise. I wasn't surprised to get a email from the energy saving club on MME explaining that they cannot switch anyone to a cheaper deal. I foolishly didn't expect the difference to be quite so much. 

matelodave

I'm staying with the SVR to see what happens between now and next autumn as my major outlay on energy  is between now and April.(about 75% of my annual consumption) 

Hopefully it will have settled down a bit by this time next year so I'm reluctant to commit to a long term fix thats likely to double my costs over this winter. I'll worry about the situation next year. As in everything it's a gamble

Ectophile

Personally, I am taking the "do nothing" option. I am staying on the variable tariff for electricity, and will do the same for gas when my fix runs out.

At least with a variable tariff, the price won't go up until the spring. To me, that's better than signing up for an expensive fixed deal going into winter.

wittynamegoeshere

Beyond whatever possible rise in April, you won't be using much energy anyway.  The review before next winter will be in October, by which time absolutely nobody knows what will be happening.  So a 1 year fix is probably a waste of money, a 2 year fix is a total guess as to whether you'll gain or lose.

I'd say that the premium for fixing is way too high at the moment.

If you're still thinking about fixing then check the exit penalties, for all anybody knows the prices could fall at any time, so you need to consider the cost of getting out of it to save money elsewhere.

billiebean

wittynamegoeshere said:

Beyond whatever possible rise in April, you won't be using much energy anyway.  The review before next winter will be in October, by which time absolutely nobody knows what will be happening.  So a 1 year fix is probably a waste of money, a 2 year fix is a total guess as to whether you'll gain or lose.

I'd say that the premium for fixing is way too high at the moment.

If you're still thinking about fixing then check the exit penalties, for all anybody knows the prices could fall at any time, so you need to consider the cost of getting out of it to save money elsewhere.

Thanks for your, and the others help. It seems the sensible advice is to go on the variable offer and fingers crossed.

billiebean

matelodave said:

I'm staying with the SVR to see what happens between now and next autumn as my major outlay on energy  is between now and April.(about 75% of my annual consumption) 

Hopefully it will have settled down a bit by this time next year so I'm reluctant to commit to a long term fix thats likely to double my costs over this winter. I'll worry about the situation next year. As in everything it's a gamble

Thank you for your reply, I will do as Martin and those on here have said and "Do nothing" and see what happens in April.

billiebean

Ectophile said:

Personally, I am taking the "do nothing" option. I am staying on the variable tariff for electricity, and will do the same for gas when my fix runs out.

At least with a variable tariff, the price won't go up until the spring. To me, that's better than signing up for an expensive fixed deal going into winter.

Thank you I will do the same. My fixed tariff will finish and I will automatically be put on the variable tariff by SoEnergy. I will remain with the same provider unless MME advise me to do otherwise in April.