Fixed Rate Tarriff?

gedmond72

I am with Eon, paying £78 per month for electric only.  Eon have suggested that I go onto a variable energy plan after my fixed contract ends in November.  This will be approx. £96 per month.  I have searched comparison websites and I can get a fixed deal for 18 months with GEUK for £116 per month.  Although that is higher than Eon at £96 per month, if the electric prices are going to jump by 30% by next April then surely I am better to sign up to the fixed rate and not "do nothing" as per Martin Lewis's advice?  Can someone please advise me?

molerat

How did you arrive at those quotes, are the based on actual kWh figures for the year ? You will be paying around +22% above the current cap for the first part of the year. The no cancellation fees make it more palatable if things cool down next year. The bigger problem is that they are a small company although been around a few years, you are taking a roll of the dice, do you feel lucky ? They are showing a couple of tariffs with the same end date so maybe they have hedged and somehow managed to buy ahead, maybe some big bucks backers.

annieshb

I’m in similar position as my current tariff is due to end at end of this month. British Gas have given me option of standard variable or a fixed tariff which is at moment £240 dearer per year.
however given that we are being told prices are likely to rise in April it seems the fixed rate may be better option in long run.
it’s a case of gambling that prices will do as we are being told and shifting to best deal based on that.

spot1034

annieshb said:

I’m in similar position as my current tariff is due to end at end of this month. British Gas have given me option of standard variable or a fixed tariff which is at moment £240 dearer per year.
however given that we are being told prices are likely to rise in April it seems the fixed rate may be better option in long run.
it’s a case of gambling that prices will do as we are being told and shifting to best deal based on that.

The Ofgem price cap will almost certainly rise in April, reflecting the present situation with wholesale prices which are unsustainable in the longer run. However by the time we are through the winter, prices looking forward might have come down to the point that fixes available then will be more attractive than those you can get now.

QrizB

Two things to keep in mind:

1. You will use a lot more energy between now and April, than you will between April and October. The GEUK tariff may be £240/yr more than the variable but you'll incur maybe £180 of that extra cost before the cap changes.
2. No-one knows what energy prices will be like in October 2022. Your £116 fix is a gamble that October 22 will be even more expensive than October 21.
   

Cardew

It is really like asking who will win the 2:30 at Epsom next year - a gamble