Best time to fix

Ormolu17

My electricity fix ended a couple of months ago.  I followed your advice and opted to be moved to the default rate.  Now you suggest accepting a fix before the next jump in the price cap in October.  If I fix now my bills will increase immediately by 30% or more.  Surely I would be better off of delaying my fix until (say) September?  Or do you think that the current fixes will be withdrawn before then?

pochase

Ormolu17 said:

My electricity fix ended a couple of months ago.  I followed your advice and opted to be moved to the default rate.  Now you suggest accepting a fix before the next jump in the price cap in October.  If I fix now my bills will increase immediately by 30% or more.  Surely I would be better off of delaying my fix until (say) September?  Or do you think that the current fixes will be withdrawn before then?

As soon as the new cap is known the fixed rates will be adapted to the cap.

Rates are withdrawn/replaced every month already now. Part of the calculation of the suppliers will be that you are paying more to them immediately, so yes, I expect that the rates are becoming more and more expensive the nearer we get to October.

Alnat1

Most people are using less fuel over summer, as the heating is off, lights used less etc. so although you'll pay more from now, it's not like the huge winter bills.

Astria

The best time to fix will always be "yesterday" as tariffs and fixes are withdrawn based on predictions about future energy costs, which, at the moment is only increasing.

Yes you'll pay more now, but it's summer so you are likely already using less electric (more daytime hours), less gas (little or no heating required) compared to winter (less daytime hours, colder weather, more heating required)

But in the end it's all a big gamble for everyone.

Best thing you can do is join a tariff with no or little exit fee.

QrizB

pochase said:

Ormolu17 said:

My electricity fix ended a couple of months ago.  I followed your advice and opted to be moved to the default rate.  Now you suggest accepting a fix before the next jump in the price cap in October.  If I fix now my bills will increase immediately by 30% or more.  Surely I would be better off of delaying my fix until (say) September?  Or do you think that the current fixes will be withdrawn before then?

As soon as the new cap is known the fixed rates will be adapted to the cap.

That's an assumption, but if you look back at eg. last August there were still fixed rates on offer that were cheaper than the new cap.

It's all going to depend on whether energy prices have peaked by then, or not.