Is a 2 Year Energy fix worth a gamble?

benny5

Amongst the options currently being offered by Sainsbury’s Energy is a two year fix where the charges are pretty similar to the one year option but exit fees are £150 per fuel.

The standing charge for all options are the same, these are the unit costs;

                                           Gas                      Electricity           Cost based on Usage P/A

New SVT                            6.7641                 26.75925            £1444

12 Month Fix                      7.30695                29.00415            £1539

24 Month                            7.3395                  29.1417              £1556

Is it worth the gamble? Crystal ball time!!

QrizB

Two questions:

What value do you give to knowing your tariff won't change for two years?

Can you afford it?

You can get out of the tariff by paying the exit fees, so if prices fall by ~20% you'll have that option.

benny5

QrizB said:

Two questions:

What value do you give to knowing your tariff won't change for two years?

Can you afford it?

You can get out of the tariff by paying the exit fees, so if prices fall by ~20% you'll have that option.

Thanks for your input.

I have always favoured long-term certainty and I'm currently being charged more on my old SVT which kicked-in last December after a previous fix had expired. 

Whilst its difficult to predict what will happen going forward and as a novice I can't see prices falling that much over the next 2 years. (Perhaps some slippage on Standing Charges but they don't contribute significantly to the overall total.

So, the 2 year option may be a deaccent choice.

Nebulous2

I've been offered the same. I posted about it in one of the Eon Next threads. I'm just coming to the end of a 2 year fix with Sainsburys, which has been a spectacularly good deal - still paying 19p for electric. 

I keep thinking, I couldn't be that lucky again. I also think surely we couldn't see another big hike from where we are. 

To answer QrizB  in reverse order:-

Yes I could afford it. 

I don't think I place a great deal of value on stability. What i want is to get the best deal I can over the piece. My murky crystal ball sees prices staying high well into next year, but then falling back slowly. 

markin

Nebulous2 said:

I've been offered the same. I posted about it in one of the Eon Next threads. I'm just coming to the end of a 2 year fix with Sainsburys, which has been a spectacularly good deal - still paying 19p for electric. 

I keep thinking, I couldn't be that lucky again. I also think surely we couldn't see another big hike from where we are. 

To answer QrizB  in reverse order:-

Yes I could afford it. 

I don't think I place a great deal of value on stability. What i want is to get the best deal I can over the piece. My murky crystal ball sees prices staying high well into next year, but then falling back slowly. 

Then you want Octopus tracker tariffs, But maybe not the best option now going into winter.

Bigphil1474

I'm coming to the end of the same Sainsbury 2 year deal and thinking the same. I think a 1 year fix is a safe-ish bet, a 2 year fix with them is risky with the exit fees.

benny5

Yes, that’s the highest exit fees I’ve ever known.

Nebulous2

markin said:

Nebulous2 said:

I've been offered the same. I posted about it in one of the Eon Next threads. I'm just coming to the end of a 2 year fix with Sainsburys, which has been a spectacularly good deal - still paying 19p for electric. 

I keep thinking, I couldn't be that lucky again. I also think surely we couldn't see another big hike from where we are. 

To answer QrizB  in reverse order:-

Yes I could afford it. 

I don't think I place a great deal of value on stability. What i want is to get the best deal I can over the piece. My murky crystal ball sees prices staying high well into next year, but then falling back slowly. 

Then you want Octopus tracker tariffs, But maybe not the best option now going into winter.

I'd probably be willing to go for that, but I don't have a smart meter for gas. It's a long way away from my electric meter and they only fitted the electric one. 

PennineAcute

Nebulous2 said:

markin said:

Nebulous2 said:

I've been offered the same. I posted about it in one of the Eon Next threads. I'm just coming to the end of a 2 year fix with Sainsburys, which has been a spectacularly good deal - still paying 19p for electric. 

I keep thinking, I couldn't be that lucky again. I also think surely we couldn't see another big hike from where we are. 

To answer QrizB  in reverse order:-

Yes I could afford it. 

I don't think I place a great deal of value on stability. What i want is to get the best deal I can over the piece. My murky crystal ball sees prices staying high well into next year, but then falling back slowly. 

Then you want Octopus tracker tariffs, But maybe not the best option now going into winter.

I'd probably be willing to go for that, but I don't have a smart meter for gas. It's a long way away from my electric meter and they only fitted the electric one. 

I did not think you needed a smart meter for the tracker tariff?

t0rt0ise

PennineAcute said:

Nebulous2 said:

markin said:

Nebulous2 said:

I've been offered the same. I posted about it in one of the Eon Next threads. I'm just coming to the end of a 2 year fix with Sainsburys, which has been a spectacularly good deal - still paying 19p for electric. 

I keep thinking, I couldn't be that lucky again. I also think surely we couldn't see another big hike from where we are. 

To answer QrizB  in reverse order:-

Yes I could afford it. 

I don't think I place a great deal of value on stability. What i want is to get the best deal I can over the piece. My murky crystal ball sees prices staying high well into next year, but then falling back slowly. 

Then you want Octopus tracker tariffs, But maybe not the best option now going into winter.

I'd probably be willing to go for that, but I don't have a smart meter for gas. It's a long way away from my electric meter and they only fitted the electric one. 

I did not think you needed a smart meter for the tracker tariff?

You do now.

philgee

benny5 said:

Yes, that’s the highest exit fees I’ve ever known.

My 2 year fix with Sainsburys is also coming to an end but the exit fees on the new fixed tariffs I have been offered are £75 per fuel.

Thinking I might just go onto the SVT rather than lock in again.