Should I cancel my fixed term energy tariff to go onto the Standard Variable in April?

AD13

Hi all,

I can't seem to work this out whether it's better for me to stick with my fix (Sainsburys) or pay the exit fees and switch to the Eon Next Pledge that Martin wrote about in his recent newsletter.

Current tariff:
Sainsburys Smooth Renew Fixed 12m V1
Fixed term ends 17/08/2024
Electricity: 28.64p/kWh | 51.42p/day
Gas: 7.20p/kWh | 29.11p/day

Total exit fee: £150
Currently in debit of: £160

Price cap from April:
Electricity: 23.27p/kWh | 58p/day
Gas: 5.96p/kWh | 30p/day

Price cap from Jul:
Electricity: 20.87p/kWh | 58p/day
Gas: 5.04p/kWh | 30p/day

Eon Next Pledge will be 3% under the price cap.

Obviously the rates are lower on the price cap so my bills will be lower on the Eon Next Pledge, however will be it as low as the £310 I will need to pay to Sainsbury's? Or is it worth just sticking with the current tariff till August and then switching?

thank you

Alnat1

Can you see from your bills how much, in kWh, you used in the April-June quarter last year? This will give you some figures to work it out from. It's likely to be quite low as it's warmer months, less heating and lights, maybe less cooking.

You can move off the fix 49 days before it's due to end without any penalty so it might be worth sticking with it for now and moving once the July deals are published in late May.

vienna28

As Alnat said you can leave your fix within 49 days of when the fix contract ends and you won't incur exit fees.  So you've only got to wait until the end of June and then you can freely seek new energy deals.

So instead of paying £150 in exit fees i would just hang on 4 months until the end of June.

northernstar007

also we are coming out of winter soon and so your usage will be droping 

AD13

Hi both thank you for your prompt responses. I had no idea about the 49 days, that's good to know. So technically if I can leave end of June, i'll only be paying for Apr-May-Jun.

2023 Usage:

7 Apr - 7 May 2023:
Elec: 215.5 kWh
Gas: 98.2 Units (m3 ) Energy Used* 1113.2 kWh

7 May - 7 Jun:
Elec: 220.5 kWh
Gas: 37.0 Units (m3 ) Energy Used* 421.0 kWh

7 Jun - 7 Jul:
Elec: 159.0 kWh
Gas: 22.6 Units (m3 ) Energy Used* 249.1 kWh

**We had a newborn baby this time last year so we may be looking at slightly lower usage this year, comparably.