Fix now or later

Janine99mcmahon

I have just been sent a quote from BG for a new and exclusive fixed deal for gas and electric for customers who were switched to them because who they were with before went bust. 

At the moment I am on a variable tariff and reading the website shouldn’t be looking to fix unless it’s no more than 15% above the April price cap. But is this for gas or electric? And is it the standing charge or the unit rate?

According to the quote the increase on the April price cap to what they recommend on the fix is:

25% for Gas standing charge

37% for Gas unit rate

16% for elec standing charge

18.5% elec unit rate increase

What should I do? If I fix my bill for a year it is estimated to be £2696 compared to £2147 if I stay on the variable? But worried if I don’t fix now, come October we will have trouble. 

QrizB

Welcome to the forum.

Various industry sources are predicting the October price cap to be 25-30% higher than the current one, so once we get to October that fix might be competitive.

The problem, though, is that you're currently enjoying the current cap and it's due to remain as-is for another five months. You'll miss out on that if you take a new fix now.

If you know your typical monthly usage, you could work out your expenditure for the next 12 months on the current cap (then increasing by 25% or 30% in October) and compate thast to 12 months on the new fix, and see which is advantageous to you.

Personally, I'd stick to the variable rate until the late summer or early autumn when there's more certainty over the October cap. But that's me in my circumstances; yours might be different.

bristolleedsfan

Janine99mcmahon said:

I have just been sent a quote from BG for a new and exclusive fixed deal for gas and electric for customers who were switched to them because who they were with before went bust. 

At the moment I am on a variable tariff and reading the website shouldn’t be looking to fix unless it’s no more than 15% above the April price cap. But is this for gas or electric? And is it the standing charge or the unit rate?

According to the quote the increase on the April price cap to what they recommend on the fix is:

25% for Gas standing charge

37% for Gas unit rate

16% for elec standing charge

18.5% elec unit rate increase

What should I do? If I fix my bill for a year it is estimated to be £2696 compared to £2147 if I stay on the variable? But worried if I don’t fix now, come October we will have trouble. 

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/?utm_source=twitter&utm_medium=social&utm_campaign=bills&source=TWORG-BILLS&utm_content=1651226751  updated today

spot1034

Wholesale prices have come down quite a bit in recent weeks and it is quite possible that if this continues there will be more attractive fixes available later in the summer. I would stay on the variable rate in the hope that this will come to pass. Of-course it might not!