Sainsbury's Energy Estimates Are In... Fix or Variable?

AdmanPea

So I managed to wrangle a fix at a time just before things started getting really bad and I'm paying £70 a month for energy. However, my fix is ending in October...

Sainsbury's have said the following (for the year as an estimate based on my last 12 month usage):

Variable rate: Electricity £529.85. Gas £714.20

One year Fix: Electricity £906.93. Gas £1373.55

The variable price is based upon pre price cap rises in October and January so likely to rise significantly. Based upon this, would it be prudent to get the fix or stay variable right now? Clearly I won't get a great deal anywhere else as those days are long gone...

My yearly usage is: 1175 KWH electricity and 8510 KWH gas. 

Thoughts much appreciated. Thanks. 

pochase

You are not giving the unit rates you have been offered, so hard to say much.

That said the current prediction is an over 80% increase in October with another big increase in January. So the fix does not look that bad without knowing details.

You should take the fix today and use the 14 day cool off to consider if you really want it. The fix might be gone by tomorrow. Call them and check if they will allow you to get to the end of the current fix and start only in October.

You can use this calculator at the bottom of the page if you have the unit rates

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/?_ga=2.41524644.760036830.1646482855-154881808.1640942753&_gl=1*s4r5sz*_ga*MTU0ODgxODA4LjE2NDA5NDI3NTM.*_ga_X74CWQS9F0*MTY2MTMxNzk1MS4xMDYuMS4xNjYxNDM2MTAzLjQ5LjAuMA..

AdmanPea

pochase said:

You are not giving the unit rates you have been offered, so hard to say much.

That said the current prediction is an over 80% increase in October with another big increase in January. So the fix does not look that bad without knowing details.

You should take the fix today and use the 14 day cool off to consider if you really want it. The fix might be gone by tomorrow. Call them and check if they will allow you to get to the end of the current fix and start only in October.

You can use this calculator at the bottom of the page if you have the unit rates

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/?_ga=2.41524644.760036830.1646482855-154881808.1640942753&_gl=1*s4r5sz*_ga*MTU0ODgxODA4LjE2NDA5NDI3NTM.*_ga_X74CWQS9F0*MTY2MTMxNzk1MS4xMDYuMS4xNjYxNDM2MTAzLjQ5LjAuMA..

Unit rates:

Variable: 

Electric 27.09p per KWH with a 48.91p standing charge
Gas: 7.23p per KWH with a 27.22p standing charge

Fix:

Electricity 66.34 per KWH with 48.91p standing charge
Gas: 16.71p per KWH with a 27.22p standing charge. 

Of course variable will go up once October rise is announced...

pochase

Did you use the MSE calculator with the rates?

AdmanPea

According to the comparison tool there's nothing out there demonstrably different. Variable rates and fixes very similar. Looks like a shootout between fixing now or going variable taking on the risk of potential huge rises over next year. 

The fix must be the worse deal, however, as surely they're setting those rates high enough to cover a worst case scenario for them...

gregbed

Maybe take the fix now like I may since new cap announcement coming tomorrow and if no like can still cancel it within cooling period?

tux900

My Sainsbury's fixed tariff can be cancelled at any time fee free so worth checking yours if that might give you more freedom.