Electric heating - Fix now?

superpang

Hello all,

I have electric radiators, so use no gas. 

I’m currently with Ovo and paying their variable unit rate of 27.09p. Their cheapest 1 year fixed offer (Better Energy) is 32.66p. Standing Charge is a bit higher but that’s pretty irrelevant as I use so much. 

This is an increase of about 21%. Am I right in thinking I’d be mad not to fix? I see the current prediction for the cap is a dual fuel rise of forty-something percent. Does anyone have an estimated breakdown for gas/electric? I would expect electric to be considerably lower than 40%, but nowhere near 21% right?

Any advice greatly appreciated. 

pochase

If you go from the Cornwall-Insights prediction electricity is at 45%, a little bit less than 42p.

32.66p is fix I would go for myself, I have fixed in February for 32.95 for the electricity part.

wittynamegoeshere

I just checked the tariffs on offer from Eon Next, the cartel supplier that I happen to be lumbered with at the moment in this zombie energy "market".

They are offering 37.98p/unit, fixed for one year.

I'd say that your offer would be tempting, and is much better than what I'm being offered.  I just checked Ovo as a potential new customer, they are offering me their "go away" price of 37.33p.

Obviously it's your decision, but the rate you've been offered seems a lot better than anything I can get.

pochase

wittynamegoeshere said:

I just checked the tariffs on offer from Eon Next, the cartel supplier that I happen to be lumbered with at the moment in this zombie energy "market".

They are offering 37.98p/unit, fixed for one year.

I'd say that your offer would be tempting, and is much better than what I'm being offered.  I just checked Ovo as a potential new customer, they are offering me their "go away" price of 37.33p.

Obviously it's your decision, but the rate you've been offered seems a lot better than anything I can get.

I would not really call a tariff for new customers that is cheaper than what you current supplier offers a "go away" tariff.

What suppliers offer at the moment seems to be completely random, even to their own customers.

lohr500

It does seem like a good option to me.
Is it the one with a £30 exit fee? If so, then I would be very tempted to take it.
If the October increase is a lot less than forecast, then you could always look around for something better. The £30 exit fee probably isn't a deal breaker if you are a high electric user. 

Mstty

That would be a no brainer for me and is featured in the fixes for consideration 

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

superpang

Thank you all for the prompt replies. It does indeed seem like a no-brainer.

A quick query before I sign up, if a pig takes flight over Westminster, and the government steps in and somehow reduces the price cap on electricity this winter, can I pay the exit fee and revert to variable (either with Ovo or elsewhere), or am I likely to be stuck with fixed tariffs for a year?

Mstty

Yep you can do what you like, move to the Standard Variable deemed tariff or move supplier if you pay the £30 per fuel exit fee👍

pochase

You can always change your tariff back to SVT or move to a new supplier, you just have to pay the exit fee if there is one.

Problem is just that you will have to revert to SVT for your current supplier or move to one of the two suppliers who currently accept new customers on SVT, EDF and Octopus. Octopus seems to becoming a hit and miss if they are accepting you on SVT, and I would not place a bet if anybody will let you move onto SVT in a few months time.

superpang

The deed is done!
Thank you all for your help. What a useful forum. 

wittynamegoeshere

pochase said:

I would not really call a tariff for new customers that is cheaper than what you current supplier offers a "go away" tariff.

It's not cheaper than my current tariff, it's much more than the current capped variable tariff.

I'd be interested in the sort of price that superpang has had offered, I'm not interested in the sort of price that Ovo and my current supplier are offering fixed rates for so it's of no interest to me.

Ovo are not offering me the option of joining on their variable tariff, just this expensive fixed one.

I'd suggest that 38p/unit is a "go away" price to most people other than those who are either terrified of any risk or just easily led.

I hope this clarifies things for you.