2 year fix now uncertain

meat_n2_reg

Hi All

My current 1 year fix ends in April with British Gas 

My current supplier British Gas has offered a "exclusive" 2 year fix which works out at approx. 20% more than the standard variable rate for April 2022

There is a £100 per fuel exit fee with the 2 year deal , which is my main concern as 2 years is a long time 

Seems to be a lot of confusion about fixing at the moment , with a lot of people saying to stick on standard variable rate and see what happens 

Any advice greatly appreciated 

Regards Steve 

FreeBear

Pundits are predicting the price cap to rise to £3000 come October, some are even saying £3500... In six months time, your fixed could start to look very competitive. Heading into summer, your energy usage should drop considerably (unless you are running air-con & hot tubs), so a 20% increase shouldn't hurt too much. If we do see another 50+% hike in prices heading into next winter, you'll be quids in. On the other hand, if prices crash, I suspect you'd be a tad peeved.

How good is your crystal ball, and do you feel lucky ?

Verdigris

It has occurred to me that the £100 early exit fees that are being touted, at the moment, may not be so unreasonable when you consider the huge range of price fluctuations we are seeing. If a political solution to the Ukraine crisis was found, I can imagine tariffs dropping enough, for heavier users at least, to make switching a no-brainer, even with that penalty.