Fixed price contracts

[Deleted User]

Are any suppliers, currently offering fixed price contracts ?

Curiousgirl1

Loads but they’re very expensive compared to Standard Variable tariff

molerat

The majority are offering fixed price, but as above, my gas provider is wanting 8p v 4p cap and the 2.6p I am currently paying.

QrizB

As Curiousgirl1 says, pretty much every supplier is offering fixed tariffs.

You're with Octopus, yes? They have a couple you can switch to. I can see "Octopus 12M Fixed November 2021 v2" and "Super Green Octopus 12M Fixed November 2021 v2", amongst others.

[Deleted User]

Why is the advice to  stay put and wait - for those nearing the end of a fixed price contract ?

Surely - the only thing that is going to happen is more price hikes ?

In which case - doesn't it make sense to grab a fixed price NOW ?

I am currently paying 3.01p gas and 16.11p electricity until the beginning of Feb

Inigo_Montoya

Deleted_User said:

Why is the advice to  stay put and wait - for those nearing the end of a fixed price contract ?

Surely - the only thing that is going to happen is more price hikes ?

In which case - doesn't it make sense to grab a fixed price NOW ?

I am currently paying 3.01p gas and 16.11p electricity until the beginning of Feb

after your fixed price ends you will go onto the standard variable rate which is currently the cheapest tariff available across virtually all suppliers & cannot be increased until next April due to the Ofgem "CAP"

By next April there may (or may not) be better fixed rates available 

If you choose a new fixed price now you will lock in at a very high price eg gas at least 2 to 3 times what you are paying now (around 8p) - as opposed to the SVR which is around 4p 

Effician

Deleted_User said:

Surely - the only thing that is going to happen is more price hikes ?

My crystal ball say's otherwise.

QrizB

Deleted_User said:

Why is the advice to stay put and wait - for those nearing the end of a fixed price contract ?

I am currently paying 3.01p gas and 16.11p electricity until the beginning of Feb

From February you will have the choice of a new fixed contract or dropping onto Octopus's standard variable one, "Flexible Octopus".

Current rates from Octopus in my region:

• Octopus 12M Fixed November 2021 v2 - gas 6.74p/kWh, electricity 26.24p/kWh
• Super Green Octopus 12M Fixed November 2021 v2 - gas 6.99p/kWh, electricity 26.24p/kWh
• Flexible Octopus October 2021 v2 - gas 4.13p/kWh, electricity 20.49p/kWh

Daily standing charges are similar for all. It should be clear from this list that the Flexible tariff is lower than either of the fixes currently on offer.

Deleted_User said:

Surely - the only thing that is going to happen is more price hikes ?

In which case - doesn't it make sense to grab a fixed price NOW ?

Everyone is expecting the Ofgem cap to increase significantly from April, however it's likely (but obviously not guaranteed) that wholesale prices of gas and electricity will have fallen by then. Variable tariffs that track the cap will rise but other tariffs offered, fixed or variable, are likely to fall.

Most of us are sticking with the variable tariff for now and hoping to find a cheaper rate come April.

[Deleted User]

QrizB said:

Deleted_User said:

Why is the advice to stay put and wait - for those nearing the end of a fixed price contract ?

I am currently paying 3.01p gas and 16.11p electricity until the beginning of Feb

From February you will have the choice of a new fixed contract or dropping onto Octopus's standard variable one, "Flexible Octopus".

Current rates from Octopus in my region:

• Octopus 12M Fixed November 2021 v2 - gas 6.74p/kWh, electricity 26.24p/kWh
• Super Green Octopus 12M Fixed November 2021 v2 - gas 6.99p/kWh, electricity 26.24p/kWh
• Flexible Octopus October 2021 v2 - gas 4.13p/kWh, electricity 20.49p/kWh

Daily standing charges are similar for all. It should be clear from this list that the Flexible tariff is lower than either of the fixes currently on offer.

Deleted_User said:

Surely - the only thing that is going to happen is more price hikes ?

In which case - doesn't it make sense to grab a fixed price NOW ?

Everyone is expecting the Ofgem cap to increase significantly from April, however it's likely (but obviously not guaranteed) that wholesale prices of gas and electricity will have fallen by then. Variable tariffs that track the cap will rise but other tariffs offered, fixed or variable, are likely to fall.

Most of us are sticking with the variable tariff for now and hoping to find a cheaper rate come April.

But will the price cap affect my bills?
I only pay a DD of £38 (at the moment)
My bills could double overnight 

molerat

Deleted_User said:

But will the price cap affect my bills?
I only pay a DD of £38 (at the moment)
My bills could double overnight 

On the cap, yes, your bills may double.

Take a fix and your bills may treble.

Come April the cap may rise but suppliers may also offer new fixes at lower rates due to forecast lower wholesale prices. The cap is based on past prices.

But you will be paying treble on your fix.

Your choice !

wittynamegoeshere

The capped price revision in April will look backwards at what the wholesale price currently is.  The fixed deals look forwards to what is likely to happen.  Scottish Power are already offering an 18-month fix (slightly) below the capped price, they at least are thinking that prices have already peaked.  Hopefully by April the capped price will be back to being the highest mug's price as it was always meant to be.

Capped price until April at the latest, then shop around.  It may even get more sensible long before then.  Even if there are no deals then it's not that important, as it will be summer shortly after so won't be using much power anyway.  October will be the time to hope that things are looking more sensible.