How does usage effect the decision whether to sign up to a fixed rate deal?

What_time_is_it

In general terms, how does usage effect whether it's better to fix or not?
Is it the case that high usage customers would be better fixing compared to low usage customers? Or is it not that simple?

Mstty

Well it's not that simple.

Low energy users if they fix today will pay less between now and October when the prices are expected to increase as per the press releases by Ofgem. After October the difference in pounds between the fix they take and the cap rate won't be as great as a high energy user.

High energy users will use more now til October 1st but then potentially save more after in £'s

However being summer most user are lowish users but knowing the actual percentage you use Apr-Sep Oct-Mar is key here.

In the future it becomes more convoluted if we get a three monthly price cap adjustment as then we all need to know our 3 monthly energy usage.

Most should spend some time with their energy account a spreadsheet and a cup of tea.

All of the above combined with potential news the summer and winter 2023 CPA rats maybe circa £2200 muddies the water further.

Ultrasonic

Ultimately it's always necessary to do the sums based on actual usage to make an informed decision, but if you want a generalisation then the lower someone's usage the more significant the standing charge becomes.

Alnat1

Some folks use more gas, some more electric and very, very few of us are the "average" household that the headlines keep talking about. It's likely most of Octobers increase will go on the gas, rather than the electric.

Work out how much the fix will cost for the gas and electricity units you are likely to use over the year and you get a more accurate figure that is easier to compare.

pochase

Another point to consider are exit fees. For high users they will be less than a months usage, for low users we are talking several months of usage.