Should I Fix?

thefullerexperience

Hi,

My precious energy tariff expired on 31st August and I am now on my suppliers standard variable rate.

My supplier has given me 2x fix tariff options to sign up to, both are in line with the current energy price cap (e.g. up to 30th Sept) but give me the option of price certainty for 12 months or 36 months.

I can afford the monthly repayments on direct debit, so I am thinking about fixing for 36 months since it would mean I don't have to worry about any fluctuations in prices.

But also looking at the fact that the price cap is due to go down on 1st Oct saving me about £14 per month (approx £500 over 36 months contract, assuming prices were to change during that time), I'm wondering whether I should wait and see what tariffs are offered next month, but may not be able to lock in price certainty for 36 months.

Anyone have any advice they would like to share, happy to receive any opinions on this.

Thanks.

Gerry1

And the exit fees are...?

Do they still apply if you switch to a different tariff but with the same company?

lohr500

The same or similar question gets asked many times on the forum.

You could look through previous questions on the same topic, or search the web for the various domestic energy forecasts over the next 12/36 months and get some insight into what the forecasters are projecting.

Whilst the cap is dropping slightly in October, if I recall correctly the forecast was for slight increases in the New Year. But I could be wrong on this.

It all comes down to the level of risk you feel comfortable with. 

What exit costs has your supplier attached to the 12 and 36 month fixes? If the exit costs are low relative to your total energy spend, then you could always grab the fix now and jump ship later if prices end up on a falling trajectory.

My own view is that if I could get another 2 year fix on my EDF Time of Use Tariff, I would take it. Too many uncertainties in this crazy world at the moment for my liking. And perversely, as a high user of electricity early cancellation costs aren't a show stopper for me, which would make the decision easier.

Bungle73

I've just been through this. I am (was) with EDF on their Standard Variable tariff. I decided a fix was a good idea at this point, based on the predictions for next year. The way I see it, even if prices go down next year it probably won't be by that much. And then we've got stuff like the Australian strike that might make prices rise even more. I looked at the fixes EDF were offering me through my online account, but they weren't up to much imho, so I started looking around on comparison websites. I've chosen to move to So Energy on their So Juniper One Year fixed tariff. The prices are a little lower than what EDF are telling me I was going to pay come October on my variable tariff as a matter of fact. I'm in the middle of switching right now. Once the year is up I'll see what is available then.