To fix or not to fix, that is the question?

erin94

Hello, 

So many of these posts kicking around already, sorry to add to them but just can't work out what is best to do! We're currently on a one-year fixed tariff with SSE (and then Ovo) that started last September so we've avoided any of the price hikes so far. This tariff is running out so need to work out what we should do. 

I can't find an overall usage for the last year as we got moved to Ovo part way through the year, however projected usage for 21/22 was 2,997 kWh electricity and  12,122 kWh gas and as nothing has changed, that's probably pretty accurate for what we'll use over the next year too. 

Current tariff details; 
Electricity: 18.98 kWh, 24.69p standing charge
Gas: 3.65 kWh, 23.73p standing charge 

Proposed fixed tariff; 
Electricity: 49.61 kWh, 56.57p standing charge 
Gas: 15.33 kWh, 27.52 standing charge 
Fixed for 1 year, £30 per fuel exit fee 

Proposed variable; 
Electricity: 27.90 kWh, 50.5p standing charge 
Gas: 7.33 kWh, 27.22p standing charge 


On the face of it the variable seems the best shout but it obviously doesn't take account of the rates going up again in October/January. Should we fix for a year or should we risk variable?

Thank you!

Spies

Roll a dice, nobody has an answer for you.

As unhelpful as that might seem, we don't know for sure what the rates will be in October, you make your choice, you take your chance.

pochase

You are almost the average 12000KWh/2900KWh Ofgem user, so latest prediction for you would be in the region of 3300 to £3400 per year from October.

The fixed tariff offered to you is already more than the predicted new SVT, so a no go. Add to it that you would need to leave your current cheap fix tariff and it becomes a "hell no".

wild666

erin94 said:

Hello, 

So many of these posts kicking around already, sorry to add to them but just can't work out what is best to do! We're currently on a one-year fixed tariff with SSE (and then Ovo) that started last September so we've avoided any of the price hikes so far. This tariff is running out so need to work out what we should do. 

I can't find an overall usage for the last year as we got moved to Ovo part way through the year, however projected usage for 21/22 was 2,997 kWh electricity and  12,122 kWh gas and as nothing has changed, that's probably pretty accurate for what we'll use over the next year too. 

Current tariff details; 
Electricity: 18.98 kWh, 24.69p standing charge
Gas: 3.65 kWh, 23.73p standing charge 

Proposed fixed tariff; 
Electricity: 49.61 kWh, 56.57p standing charge 
Gas: 15.33 kWh, 27.52 standing charge 
Fixed for 1 year, £30 per fuel exit fee 

Proposed variable; 
Electricity: 27.90 kWh, 50.5p standing charge 
Gas: 7.33 kWh, 27.22p standing charge 


On the face of it the variable seems the best shout but it obviously doesn't take account of the rates going up again in October/January. Should we fix for a year or should we risk variable?

Thank you!

Personally I wouldn't fix at those rates as the October increase is touted to be around 65% making a kWh of electric close to 43p and gas somewhere in the region of 13p if SC's stay the same in October. The kWh prices may be lower if they increase the SC and the cap is around the £3200 mark.

I would try and find ways of reducing the costs of your electric and gas usage by turning off everything that's left in standby mode except the fridge, freezer and router. Lowering the temperatures on the boiler to 50 degrees for water and 55 degrees for  heating and lowering the temperature on the thermostat to around 18 degrees.

All other appliances can be turned off at the wall socket if not in use, whether it's the TV or the cooker. Just go round the home and if it's left in standby mode turn it off if you can access the wall socket.