How do I decide whether to go for a fixed deal or not?

MSE_Laura_F

I'll kick off the event with the first question, and it's a big one: how do I decide whether to fix my energy or not? 

MikeJXE

Toss a coin heads or tails because no one has any idea which is the best to go for 

ellymoo

If you need to know what to pay every month (like I do!) then go for a fixed rate. Act on what you can afford now, not what might happen in a few months.

MSE_Andrew

If you’re on a price-capped standard tariff, the most important thing to understand is the rates on your tariff are variable and change every three months in line with the Price Cap.

So when considering switching to a fixed deal, you need to look at what’s expected to happen over the next year with the Price Cap. We know prices will fall by 7% in October. Prices are then predicted to rise again in January (by 6%), before falling again in Apr (by 3%) and July (2%).

Factor all that in, and with some averaging, our best guess is that a deal for 5% LESS than the current Price Cap from July to September (or 2% MORE than October’s Price Cap) could be worth considering.

For full info, see our Should you fix? guide

Thanks 

MSE Andrew

Andrew Capstick - MSE Energy Expert

This question and answer came about during the MSE Forum 'Ask An Expert' event. It won't be updated so may no longer be correct at time of reading. This info does not constitute financial advice: always do your own research on top to make sure it's right for your circumstances

Ask an Expert: Energy (Sep 2023)

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Should I fix my energy or stay on the Price Cap?