Would you take this fix? - 2 years until 29th Feb 2024

What_time_is_it

My supplier is offering this 2 year fix until the end of Feb 2024:

Gas - 8.727p per kwh / 26.11p standing charge
Elec - 33.27p per kwh / 23.76p standing charge

My annual usage is around 16,000 kwh for gas, and 2,200 for electricity.

On the face of it that looks like a decent shout now. It would cover the next 2 winters and lock me in at around 20% above the new price cap.

What do you think?

What_time_is_it

I should also say that it has a £70 exit fee (for both gas and electricity combined).

PZ19

Bear in mind there’s another expected 20% rise in the price cap in October, so next autumn/winter will be the time these rises really hit people.  Calculate your estimated new price cap tariff in October from that and compare.  Short term pain may turn out be long term gain, unless the government actually do anything meaningful to help with the increases.  

QrizB

Personally, I'd decline.

If you really need the reassurance of a fix, check the comparison sites and see if you can find a cheaper one.

wittynamegoeshere

Bear in mind that you'll be currently paying around 21p per unit for electric until the 1st April if on a standard capped variable tariff, so this will be a voluntary 57% price rise with immediate effect, during the remaining period of probably the highest usage for the year.

You'll be using a lot less after April anyway, and the price beyond October is anyone's guess.

I wouldn't take it, but nobody without a crystal ball can actually say whether you'll lose or gain.

If you're set on a fix then it might make more sense to look after April, once you're actually being charged the higher rates.  I find if hard to believe that they'll go much higher than a 20% premium.

Remember that you're betting against the house - the suppliers, with their teams of highly-paid analysts, are offering you this deal because they think you'll pay more so they'll make more money from you.  They are not offering it out of generosity.

bristolleedsfan

What_time_is_it said:

My supplier is offering this 2 year fix until the end of Feb 2024:

Gas - 8.727p per kwh / 26.11p standing charge
Elec - 33.27p per kwh / 23.76p standing charge

My annual usage is around 16,000 kwh for gas, and 2,200 for electricity.

On the face of it that looks like a decent shout now. It would cover the next 2 winters and lock me in at around 20% above the new price cap.

What do you think?

£80.00 dual fuel exit fees if that is So Energy

spot1034

I am of the view that there will be better deals on offer later in the year. Prior to the heightened tension around the Ukraine situation, forward prices for gas in the middle of this year had briefly dropped below 150p per therm. It's my belief that they will see that price again and probably go a bit lower, in which case the remaining large suppliers will be fighting for market share and they should be able to offer some better fixes than those presently on offer.

This of-course assumes that Russia does not invade Ukraine. If that happens, all bets are off!

What_time_is_it

spot1034 said:

I am of the view that there will be better deals on offer later in the year. Prior to the heightened tension around the Ukraine situation, forward prices for gas in the middle of this year had briefly dropped below 150p per therm. It's my belief that they will see that price again and probably go a bit lower, in which case the remaining large suppliers will be fighting for market share and they should be able to offer some better fixes than those presently on offer.

This of-course assumes that Russia does not invade Ukraine. If that happens, all bets are off!

Is Putin a signed up member of this forum? beast_from_the_east?

Bronia80

Ignore the top offer I posted that by mistake, your offer is similar to mine (the bottom one)  I have changed my mind about it, I did take it but there are no exit fees.