Variable or fixed

Kevinp8880

Any advice please. We are on a fixed tariff until the end of March payments of £45 monthly by DD to SP.My new one year fixed rate is £143 per month. This seems excessive to me, would I be better off go on a variable rate. Thanks for any advice.

Spies

What's your kW usage, gas and electric or electric only? 

Kevinp8880

Hi, we are electric only usage 2700kw per year.

BeerSavesMoney

What are the unit rates you are being offered? p/kWh?

Kevinp8880

Variable rate as of change over is 24.03 p per day,  and
21.557 kWh
fixed year rate 41.65p per day and 57.14 kWh. £50 exit fee.

PZ19

Kevinp8880 said:

Variable rate as of change over is 24.03 p per day,  and
21.557 kWh
fixed year rate 41.65p per day and 57.14 kWh. £50 exit fee.

if as expected that 21.557p rate increases by 54% for price cap rise, then that will rate will move to 33.2p kWh so I suspect until the October price cap increase that’s 6 months on a cheaper rate if you go variable.  The trouble then is what happens in October but even if it’s another 50% rise Then the winter variable rate would be around the 50p mark, so still cheaper than fix.  

People can obviously correct my assumptions there if I’m wrong 

edit just seen that the price cap unit rate for electric is 28.11p and 50p standing charge from April

Kevinp8880

Yes that’s what I thought, the fixed rate looks very expensive.

Brewer21

I've stuck with the Flex tariff with Eon.Next. It's just under 28p and 44.75p SC on that,  better than their V12 fix of course, who knows how much rise in October? I'll suck it up when it happens, for now use less, ain't had the heating on at all today.😩

Flight3287462

The big problem is guessing what the October price cap will be and then the following April.  The fixed rates being quoted just now suggest they are expecting it to be very substantial, 100%?

I really don't know what I would do as all scenarios are horrific BUT could get a lot worse who knows.  Thank goodness I fixed for 2 years last September my current fix is £2100/annum if I fixed today it would be £6012/annum (10,000KW/annum) and maximum of a 1 year fix.

Ultrasonic

Kevinp8880 said:

Hi, we are electric only usage 2700kw per year.

Are you sure? That seems VERY low for an electricity only home.

(You mean kWh not kW by the way.)

Ultrasonic

PZ19 said:

if as expected that 21.557p rate increases by 54% for price cap rise, then that will rate will move to 33.2p kWh 

To avoid confusion for others, this is not how the April price cap increase works. The 54% figure is the change in the total bill for a typical dual-fuel home. The changes to units rates and standing charges vary and aren't all simply 54%.

You can see what the April price cap costs will be here:

https://forums.moneysavingexpert.com/discussion/comment/78957887/#Comment_78957887