EDF 2 year fix. Are people taking it?

Worriedandalone

I know it’s impossible to predict the prices further than 12 months so there is no true answer to this. However, I’d be interested to know peoples logic on whether they are taking it or not before I make a decision.

EDF are currently offering me a fixed tariff which is just over 20% higher. Using Martin Lewis’ logic of accepting anything under 35-40% more than current costs this seems like a good deal.
However, it’s a 2 year fix with a £300 early termination fee. If the prices come down in Year 2 it may not be worth it over all.

I’m currently swaying towards accepting the offer on the idea that even if costs do come down in Year 2 it will likely be a slow decline which would come lower than the fix. But, as I’ve said, nobody can say for certain so I’d like to hear other peoples thoughts and logic if possible.

Robin9

I'm hoping that EDF will send me an offer code.   in my are 11.111 for gas seems excessive compared with other regions of under 10.

Then, yes, I'll be tempted

Mstty

Personally all things considered I wouldn't take a 2 year deal this much above the current cap.

There aren't many people sticking their necks out with 2023 predictions but in lieu of anything else here is what I have found.

'Cornwall Insight has not yet released its predictions for how the quarterly cap could change during the rest of 2023. However, based on the current cap that is updated twice a year, the analyst expects it to fall to £2,292 in April (covering the summer) and then drop again to £2,283 in October (covering the winter).'

Source https://www.themoneyedit.com/household-bills/will-energy-prices-fall-2023

The_Fat_Controller

This has been discussed many times already.

Year 1 likely to win.

Year 2 need a crystal ball.

In my account I was offered two different versions of Total Service May24, the preferential rates had an exit fee of £300, the other with higher rates and exit fee of £200.

longjohnjohnson

Mstty said:

Personally all things considered I wouldn't take a 2 year deal this much above the current cap.

There aren't many people sticking their necks out with 2023 predictions but in lieu of anything else here is what I have found.

'Cornwall Insight has not yet released its predictions for how the quarterly cap could change during the rest of 2023. However, based on the current cap that is updated twice a year, the analyst expects it to fall to £2,292 in April (covering the summer) and then drop again to £2,283 in October (covering the winter).'

Source https://www.themoneyedit.com/household-bills/will-energy-prices-fall-2023

Given Russia just stuck their neck out and halved imports to Germany are you really going to trust a finger in the air organisation whose finger was in last weeks air?

Mstty

You go on the info available at the time and if you like a gamble you either stick or twist.

That's what the energy market is right now, a complete gamble.

Recently I can see Putin has saved face and delivering the critical cities over to Russian control he needs to not be ousted. It could all well be over in the next 6 months and Russia will flood the market with cheap gas.

So yes I think they stand a fair chance.

Theres my finger in the air lol

longjohnjohnson

Mstty said:

You go on the info available at the time and if you like a gamble you either stick or twist.

That's what the energy market is right now, a complete gamble.

Recently I can see Putin has saved face and delivering the critical cities over to Russian control he needs to not be ousted. It could all well be over in the next 6 months and Russia will flood the market with cheap gas.

So yes I think they stand a fair chance.

Theres my finger in the air lol

Wait, what?  He "saved face" by doing exactly what he said he was going to do?

Do you understand what "saving face" means?

He lucked out, is going to entrench and will continue playing around with the Europeans vis a vis energy.  Until they capitulate.

Bear in mind that all these increases in gas, petroleum and diesel prices are almost without any reduction in supply.

Mstty

I'm just analysing from a personal view point and information I have to hand👍 

As for Russia my view is at the start it wasn't going well and now he has saved face delivering his plan. If you have another view and definition of what has happened and saving face that's up to you and I certainly won't pull you up on it in a rude fashion. 

Have a good day👍

Mstty

OP are you talking about this deal as you mention 30-40% more but a quick look on the ever changing link below which is proving to be excellent suggests there is a better deal now at 24% increase and a code for £100 back on you bill 

https://www.moneysupermarket.com/store/gas-and-electricity/enquiry/



In which case this may change the dynamic👍

si_74

I went with the May24v3 which is a 2 year fix. I am a higher than average energy user and am satisfied that this will save me money in year 1. Year 2 I have no idea about, but the predictions, although not particularly certain, lead me to think I have probably made a decent decision.

I'd rather have a bit of certainty and have taken a call with the best information I have available so what will be will be!

MattMattMattUK

I can take the offer, but I am not going to as it just about makes sense taking into account low summer usage with higher winter usage through to April 2023. However the fact that it will lock me in until 2024 with hefty exit fees means I am not willing to take a gamble that I am not willing to take as I think it will be significantly over priced for the second year, as well as over priced for the next four months. If it was a one year fix I would have already taken it, but there is a very obvious reason why it is not.