Sorry!! PFP to BG tarriff help

simonkarios

Hi all,
I know this has probably been asked a million times and I've tried to understand all the different posts, but wow, I'm even more confused now
From the folding of PFP, they placed me on BG Price Promise April 2022.
This week BG offered me a fix called Home Energy Fix November 2022 v3, which is slightly more expensive than the variable deal.
Should I take the fix in order in order to protect myself from a price hike in April or stay on variable and keep everything crossed

Thank you so much and apologies if people are fed up with answering the same question....!

Simon

Misslayed

Have a read of Martin Lewis' advice on the subject @simonkarios

https://www.moneysavingexpert.com/news/2021/10/martin-lewis---do-nothing--with-your-energy-supplier/

simonkarios

Misslayed said:

Have a read of Martin Lewis' advice on the subject @simonkarios

https://www.moneysavingexpert.com/news/2021/10/martin-lewis---do-nothing--with-your-energy-supplier/

Thanks, but that is about deals that are coming to an end, not being moved to another supplier...I still not sure whteher to fix or go variable.....

QrizB

simonkarios said:

I still not sure whteher to fix or go variable.....

That's your choice and there's no guaranteed right answer. Do you feel lucky?

simonkarios said:

From the folding of PFP, they placed me on BG Price Promise April 2022.
This week BG offered me a fix called Home Energy Fix November 2022 v3, which is slightly more expensive than the variable deal.

How much is "slightly"? For example, gas at 5p/kWh vs 4p/kWh might seem "slightly" more expensive but it's a 25% price hike and would cost the average user an extra £10/month, £120/year.

bagand96

It depends on what you think energy prices will do long term.  For my use (which is fairly modest) the Home Energy Fix Nov 22 v3 would be £175 a year more than the current Price Promise Apr 22 capped rates.  That said, it's not a like for like comparison as the fix would lock the price in, whereas the variable will almost certainly change when the Ofgem cap changes in Apil.

It depends whether you think the increased rate is worth it for the security of fixed energy prices for 12 months.   The Ofgem cap will rise in April as it takes into account current wholesale rates, and also will include an industry levy to pay for all the failed suppliers.

The unknown is what happens in the bigger international energy market and the effect that has on wholesale prices.  The wholesale gas prices rocketed very quickly and it was largely not forecast.  So in theory they could collapse equally as quick.  Although the jury still seems to be out as to whether this is a blip or a more long term correction.  The reality will probably be somewhere in between.  If wholesale prices do fall significantly then we will likely see some more competitive fixes return at lower than Ofgem capped rates. 

Lot's of if's and buts and I'm sorry I'm not answering your questions!  Its a sum to do on how comfortable you feel on current rates and if you want to lock in now or ride it out.