Help with EDF tariff

manny_01

Hi,

I'm with EDF on the SV rate and wanted to switch to the may24v3 as suggested by the moneysavingexpert email, but for various reasons I missed out and mow there is a new tariff called jun24v3 which looks to be around a penny more per unit per fuel and a bit more in standing charge (pic below). Can anyone work out for me if this is still a good deal based on % increase of the current cap?

Thanks

Manny

ljshaw

I'm with EDF, fixed contract ends June22. I'm being quoted a much higher rate on the Fix Total Service June24 tariff.
 Electricity unit rate 11.011 perkWh and 27.22 daily rate. Gas 41.64 perkWH and daily charge 49.65!!

robbo990

Martin recommends It now may be worth switching if you've been offered a fix that's no more than 35% above your current price-capped tariff, or 40% more if you very strongly value budgeting certainty.

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

An increase of 35% would put your prices around 38.35p kWh Electricity and 10.0926p kWh Gas. Standing Charge remains the same.

Have a similar offer myself with EDF and am tempted.

si_74

The May24v3 rates for me were:

Elec - SC 44.75, Uni 33.85
Gas - SC 27.22, Unit 9.637

It is very difficult for anyone to give you the right answer. The price cap prediction prediction is between 42% and 46% increase for October I think. I'd say it's a decent deal they've offered and will probably work in your favour for year 1 once Octobers increase comes. After that the predictions on what may happen to the price cap become much more sketchy. I've read that they think a small reduction in price in April 2023, but not to current price cap levels.

You, like me, may find yourself on the wrong side of it in the second year of the fixed rate. That's a risk I'm willing to take though. Personally I like the certainty. 

manny_01

Thanks both, 

It's definitely a tough decision, I've certainly never um'd and ah'd this much about choosing a deal on energy before. I think I'm going to take the deal and then if there is some titanic drop in prices in year two, I'll just pay my way out (£300 is a lot to exit, but actually not that much considering the month cost). 

si_74

manny_01 said:

Thanks both, 

It's definitely a tough decision, I've certainly never um'd and ah'd this much about choosing a deal on energy before. I think I'm going to take the deal and then if there is some titanic drop in prices in year two, I'll just pay my way out (£300 is a lot to exit, but actually not that much considering the month cost). 

Exactly my opinion as well. I took the plunge and decided if it turns out to be the wrong thing then so be it.

Mobtr

manny_01 said:

Thanks both, 

It's definitely a tough decision, I've certainly never um'd and ah'd this much about choosing a deal on energy before. I think I'm going to take the deal and then if there is some titanic drop in prices in year two, I'll just pay my way out (£300 is a lot to exit, but actually not that much considering the month cost). 

The way I see it is that it’s going to go up by more than what you’re locking into in October, may go up or down very slightly in April which will take you to October 23. The prices would have to come down significantly then to be cheaper than what your going to paying now if you take the deal. EDF allow you to leave a tariff within 90 days on the end date so if prices come right down in April 24 you can leave without penalties. Of course if OFGEM change to 3 monthly reviews it might pan out differently 

kev2009

I'm with EDF also, I'm being offered Fix Total Service Long-Term until 30th June 24 for Gas only and rates are:-

Unit rate = 11.085p

Daily standing charge = 27.22p

Current rates are:-

Unit rate = 7.344p
Daily standing charge = 27.22

Exit Fee = £100

Worth fixing for 2 years at the prices quoted?

Elec is with a different supplier and runs out March 2023 and was originally going to sort the out on another fix, possibly dual fuel if prices are reasonable but with expected price increase, might be better off to just fix it now and be done.  If prices do drop, then potentially the £100 exit fee would be worth it to reduce monthly bill and hence be recouped over a few months.

Thanks

Kev

kev2009

How are you working this out? For me, if I do the 7.344 x 46% it works out to 10.72224p which is lower than the 11.085p so cheaper to go with price capped.

However, if I take my monthly payment DD x 46% that works out to £2 more if on price cap so cheaper to take the fix, hence my dilema .

Kev

pochase

Gas and electricity don't have the same percentage increase. Gas will be more like 60% and electricity 45%.

So one of the assumptions for gas is 11.8p at the moment.

This is a deal I would not take. There is only 0.715p saving toward a high cap estimate, lower estimates there would be no savings at all.

Go from a potential saving of £7.15 per 1000KWh gas minus what you pay more until Oktober. The exit fee is almost higher than your potential savings.

kev2009

would the daily standing charge not go up as well though as I believe it did before so is likely to again?

I've just looked at ovo and there tariff is higher in terms of unit price, in terms of yearly totals, ovo is approx. £5-£7 more depending if i fix for 1 year or 2 years with ovo.

Thanks

Kev