Thoughts on longer fix

msskmy

I am currently on fix until mid Jan 2023 with electric 28.18kwh SC 24.03 & gas 8.4kwk SC 26.1. I  have been offered a 3 year fix electric 31.395kwh SC 24.0345 & gas 7.14kwh SC 26.103. I am a low energy user so if I take 3 year fix it would only be slightly higher than the fix I am paying. However the exit fees are very high which mean if I take this fix I am almost certainly going to have to stick with it for 3 years or I will pay a high price for leaving it. Any thoughts of a longer term fix? Will prices and standing charges go down significantly? what happens if I move house?

Ultrasonic

I'm surprised that the 3 year fix numbers you're quoting are cheaper for gas than you are currently paying. Have you definitely got the numbers right there?

Regarding moving house, you could check the contract wording but I'd expect the contract to end at that point.

msskmy

The numbers are correct as I fixed in January before the price cap was announced when prices may have been predicted to be higher so the gas rate I am paying is higher than the expected April cap and the new rate is more in line with the April cap rates but I am too concerned with gas as I use and pay more on electric.

Ultrasonic

msskmy said:

The numbers are correct as I fixed in January before the price cap was announced when prices may have been predicted to be higher so the gas rate I am paying is higher than the expected April cap and the new rate is more in line with the April cap rates but I am too concerned with gas as I use and pay more on electric.

I'm more surprised that they should be offering such a low long term fix now. For comparison, Scottish Power currently have a 2 year fix where the gas unit price is about 19 p/kWh. 

Do you know your approximate annual usage in kWh? Do the sums to compare the two if you do. My guess is the new fix may even work out cheaper for you so this may be a complete no-brainer. I'm genuinely struggling to believe your quoted figures though as they seem a bit too good to be true right now.

What company is this with out of interest?

msskmy

The 3 year fix works out only slightly more than my current fix which I am fixed until Jan  2023. The catch is that the exit fees are £300 duel in the first year reducing to £200  year o I would not be likely to leave this tariff so if rates were to reduce I would most likely be stuck on this tariff. 

QrizB

Is this the mysterious Octopus three-year fix?

Original tweet:

https://twitter.com/andy_warby/status/1499318939121336320

Janie2008

 But if energy prices went right down by year 3 which could be say by £1000 a year £100 exit fee wouldn't be that bad and you would have saved way more than that by then. With the expected rise in October you would save enough by leaving even earlier. I don't think you have anything to lose.

wakeupalarm

I asked Octopus Energy about this 3 year fix and they said they only do 1 year fixed tariffs.