Fixed or variable?

powerconfusion

Hi,
I wonder if anyone can advise me please?  I have a fixed tariff ending 8th October.  If I do nothing I will end up on variable rate, initially 43% above current fix.  The cheapest fix my firm have offered is 186% more than my current tariff and the cheapest fix using the MSE tools is over 200% more.
I've read everything on MSE, have completely lost the plot and don't know what to do next.  Is it madness to stay on a variable rate?
Thanks so much.

Alnat1

You need to compare the offered fix to today's SVT rates, not to the fixed rates you are currently on.

powerconfusion

So compare the offered fix with the SVT rates they have quoted me?  Apologies if I'm being daft.

powerconfusion

So the cheapest fix my provider is offering is 100% more than their current quoted SVT rates.  Does this mean I should accept it?

tpeppers

Unfortunately I don't think anyone can really give a straight answer because no-one knows what will happen. In that sense, it's not madness to stay on the variable rate. I (and many others) are stuck on the variable rate, but I'm willing to stick it out and see what happens. 

For all we know, the incoming PM might cap energy prices at ~£2000, in which case all fixed tariffs are massively overpriced. 

powerconfusion

Thanks, it is so confusing and worrying.  I guess I've got a month or so until the end of my tariff but I'm worried that if I don't decide now the offered fix that's 'only' 100% more will be long gone. 

PNELancs

That sounds very much like the EON Sainsbury’s offer I’ve been sent. I’ve been offered a fixed rate that is around double the variable rate and I’ve been turning it over in my head several thousand times but eventually gone for the fixed rate. The main reason for that is there are no exit fees, so if things don’t end up as bad as we fear or the government actually do something I can get out of it quickly. It might be worth checking the exit fees on your offer.

powerconfusion

Funny that! 
So I was offered the 1 year fix and reward v 36 and the 1 year smooth renew v 20 (which was cheaper) or to do nothing and go on to the variable rate.  Did you get the same offer?  It's the 1 year smooth that's 100% over their SVT for me.

powerconfusion

Just double checked and no exit fees on the smooth and £200 less than the fix and reward, but also £200 more a month than the SVT at the moment.  
It's just exhausting thinking about it!

Astria

powerconfusion said:

Just double checked and no exit fees on the smooth and £200 less than the fix and reward, but also £200 more a month than the SVT at the moment.  
It's just exhausting thinking about it!

But it's only 6p/kWh more than the expected October rise (electric), about 1p/kWh gas, doesn't take effect until your current tariff finishes, and may be cheaper once the January cap is announced. That's why I went with it.

PNELancs

powerconfusion said:

Funny that! 
So I was offered the 1 year fix and reward v 36 and the 1 year smooth renew v 20 (which was cheaper) or to do nothing and go on to the variable rate.  Did you get the same offer?  It's the 1 year smooth that's 100% over their SVT for me.

Exactly the same, a fix of £350 or a fix of £450, both with the same terms as far as I could see. What a conundrum!