Is this a good Fixed energy deal please?

norm27

My present dual fuel energy contract ends on 31.3.22. My supplier's monthly quote is roughly double the existing at  £276 variable, or £326 for a 2 year fix. I am thinking that the fixed price might not be that bad as logically given what is happening in the world the extra £50 might be less than what the variable rate might increase over the next 2 years. I have heard comments that prices might drop in the future which would negate this argument, but on the other hand how often do we see prices fall in reality? Does anyone have any advice as to how I should proceed or is it just pot luck? Thankyou.

QrizB

norm27 said:

... hand how often do we see prices fall in reality?

Wholesale electricity prices peaked in 2008 and didn't get back to that level until 2021.

Prices fell from 2008-09, 2011-12, 2013-16 and 2018-20.

... given what is happening in the world the extra £50 might be less than what the variable rate might increase over the next 2 years.

I cans certainly see the apppeal of an affordable fixed price with a well-capitalised company.