How do I calculate if it's better to switch to a fixed tariff?

chris112

Just saw Martins video on the expected rise in the price cap, in April and am not sure if it's best go go onto a fixed tariff now or to stay on the variable one 

how so I calculate if I should switch tariff?

currently am on Octopus flexible tariff:
day: 21.85
night: 15.07
standing charge:24.12

i could switch to their one year fixed:
Day: 32.98
night: 18.53
standing charge: 24.12

frederick1950

Until the actual figures for the rise in  the SVR are announced who knows ?
If it does rise by the suggest 50% the fix looks marginally better , it would really depend on how much they alter your ' night' tariff.

wittynamegoeshere

Nobody can possibly know or calculate anything.  The calculation for the capped tariff isn't yet known, and it's looking likely that the government may do something to make it lower than it should be, but nothing has been announced.

We're comparing a known against an unknown. 

chris112

So now we know the April price cap will be 28p how would I calculate whether it's worth switching to Bulbs 12 month fix or just to remain on there variable tariff?

variable: 
day: 21.85
night: 15.07
standing charge:24.12

12month fixed
day; 40.93
night: 23.89
s.charge; 24.12

As the April price cap is 28p and the fix is 40.93 which is more than 15% higher (32.2), am I correct in thinking I'd be better off not switching? 

Ultrasonic

I'm afraid you can't 'calculate' whether the fix will be cheaper or not as we don't know how much the cap will increase in October. What a decision will come down to is a guess about what this may be.

Do you know how much energy you use in kWh? Annually, or even better separately for April-September and October-March?

QrizB

chris112 said:

So now we know the April price cap will be 28p how would I calculate whether it's worth switching to Bulbs 12 month fix or just to remain on there variable tariff?

12month fixed
day; 40.93
night: 23.89
s.charge; 24.12

That 12-month fix is equivalent to a rate of appprox. 33.8p/kWh, which is a 27% incease on the current cap for multi-rate metering.

Put another way, capped electricity prices would need to rise by 27% in October in order to then equal the rates on Bulb's 12-month cap.

Put yet another way, average wholesale electricity prices for the period February-July would have to be 7p/kWh above the previous period.

MWT

When did Bulb offer a 12 month fix?

They have been variable only for a long time now and under the special administration process I'd be very surprised if they changed that now...