Please help me see if this fix is better for me

Misd_sixties22

Please can you help me?  I've already read someone else's post on EDF fix but I've had a go at the figures and still seem lost as the number seemed ridiculously high. Not sure if I'm doing it right so please can someone help me figure it out?

My yearly usage is approximately: Elec 3461 and Gas 13286

EDF are offering a fix until Feb 2024
Elec unit rate 33.81 and standing charge of 24.11
Gas unit rate is 8.878 and standing charge of 26.12

These rates appear to be better than the price cap in April (which EDF have already announced they will meet).No doubt they'll rise again in October so should I fix?  Exit fees are £200 and I pay by monthly direct debit for what I use (not a set amount each month). Current bills are £160ish per month.  I'm getting seriously worried about how I'm going to pay these increased bill over the next few months so really will appreciate the advice.
Thank you.

QrizB

Misd_sixties22 said:

These rates appear to be better than the price cap in April (which EDF have already announced they will meet).

Based on those rates and the national averages for the current (Oct 21) and future (Oct 22) caps I get:

• Current cap - £1447/yr
• Future cap - £2225/yr
• EDF fix - £2533/yr, +£308/yr vs. the cap
  

The EDF fix has lower standing charges but these are more than offset by the higher unit rates.

There will be a bit of regional variation in the cap but not £308-worth.

Misd_sixties22 said:

No doubt they'll rise again in October so should I fix?

Until October you will be paying more on the fix than the cap (but see note below). The cap would have to increase by more than £308 (15%) in October for the fix to be cheaper then.

Note: if you're an exceptionally low user over the period April to October - less than 4kWh/day of electricity, less than 1kWh.day of gas - the fix will be cheaper. This seems unlikely given your annual usage figures.

PennineAcute

Converting these rates to compare with the April '22 cap, compared to the cap it is £300 more expensive, at a value of £2354. 

Forgetting the very high exit fees, I think you would be better sticking on the SVT.

Misd_sixties22

Thank you so much for making it clear. I will stick on the SVR.

LaDerniereSemaine

Bear in mind that's a 2 year fix.  2 years is an extraordinarily long time to fix on a top of the market tariff.

It might go up by 20% in October but the cap is already twice the current market rate for gas...

I'd be very reluctant to fix now and look for more sensible fixes in sumner, but only for a year at most.