Fixed Energy Tariff

MenaiVenom

Octopus Energy, the electric company I am currently with are offering fixed tariffs for 12 months. 

They have offered me the following: 

'Daily standing charge 52.31p /day

Unit rate 27.11p /kWh

Early exit fee

(For changing tariff or supplier) 

£75'

 Is this deal worth it, or would it be better to stay on the variable tariff? I am worried that I could end up paying a lot more if prices drop. 

la531983

Nobody on here has a crystal ball. Do whatever you are comfortable with.

JSHarris

As above, I think it's impossible to try and guess what prices may do after about the middle of next year.  At the moment there are some predictions that prices will fall in April 2024, but that depends on lots of factors.  If the situation in the Red Sea turns more serious, for example, we could have a re-run of the impact that Russia's attack on Ukraine had a year or so ago. 

QrizB

MenaiVenom said:

Is this deal worth it, or would it be better to stay on the variable tariff? I am worried that I could end up paying a lot more if prices drop.

Fixed tariffs usually cost more than variable ones. They offer certainty, not savings.

What worries you most, not paying less if dates fall or paying more if they rise?

If you are worried about not saving money on a fix if prices drop, stay on the SVT but be prepared to pay more if the SVT rises.

If you are worried that the SVT might rise and be unaffordable, take the fix

bristolleedsfan

https://www.fuseenergy.com/  £50+ below cap for electricity with no exit fees including cheaper standing charge - rates frozen until 31 March.2024

https://forums.moneysavingexpert.com/discussion/6473886/e-on-nexts-pledge-tariff-costs-50-less-than-the-energy-price-cap-should-you-switch#latest  £25 below cap for single fuel based on typical average use, easy to find Eon Next £50 credit refer a friend link online, exit fees do not apply for change of tariff.

BlueonBlue

My edf electric standing charge is 38.52 now and going up to 38.50 pence per day on 1st jan on the std  variable .
So if the figures are correct I would switch out .

bristolleedsfan

BlueonBlue said:

My edf electric standing charge is 38.52 now and going up to 38.50 pence per day on 1st jan on the std  variable .
So if the figures are correct I would switch out .

https://twitter.com/LucyPip20032481/status/1720132533587673590

JSHarris

Just followed that link and got a quote from Fuse Energy.  A bit over 215% more than I'm currently paying for electricity on a SVR from EDF . . .

Drew1980

Not sure sorry, but was thinking of going with them as all renewable energy sources I believe

Gerry1

BlueonBlue said:

My edf electric standing charge is 38.52 now and going up to 38.50 pence per day on 1st jan on the std variable.

Going down, by a whopping 7p per year.  Spend it wisely !

Staffordian11

I'm with Octopus and decided to take a similar one year fixed.  As others have said, or implied, its a gamble.

For me, it's about 3% cheaper than the Jan 24 capped rate and this is my heaviest use period. If the capped rate does go down from April then that's fine, my usage is far less, so if I'm paying more at that time I should still be up overall on the deal.

And if I'm not, I've bought a year's certainty.