Fixing a Tariff?

GSP

With Eon, I have just switched from economy 7 to a single rate as we were only using 10-15% of units at night.

The new tariff’s came in on 1st April and believe the next review or changes will be 1st July.

Over the past few weeks I’ve noticed the price of energy has been ticking up on the markets.

This is probably a really stupid question but if I choose to fix rates in this review window, is it best I do this well before the 1st July changes? Or can I leave it until a few days before the new tariff’s kick in?

MP1995

If July early indications are that prices will rise then its likely the best fixes are here now.

I haven't seen the latest predictions

Chris_b2z

There's an MSE article that covers this topic in some detail - 

https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/

spot1034

Despite wholesale prices bouncing off their lows, it looks likely that the July to October price cap will fall significantly - the reason being that the present price cap is based on an average price during the assessment period (mid-Nov to mid-Feb) when the market fell very sharply during that three month period, and so it still does not yet reflect a whole assessment period at roughly the level of present prices, which now seem to be bobbing around within a range. Unless the wholesale market  shoots up sharply in the next five weeks, a further fall is now pretty much baked in.

Beyond that, frankly, no one knows. If the trend appears definitely to be upwards again (which in my view it doesn't - yet) then now might with hindsight look like a good time to fix. However, as I said, all that has happened is that prices seem to have now settled in a range and it is a case of up one day, down again the next. Personally I am presently happy to be on E.On Next's Price Pledge Tracker which gives a small discount on the price cap and will fall if/when the cap falls in July. At the moment the Cornwall Insight forecasts/educated guesses for the two periods beyond the next one see only modest increases. Of-course that could change. In the end, you have to make a decision based on your own appetite for risk. 

GSP

spot1034 said:

Despite wholesale prices bouncing off their lows, it looks likely that the July to October price cap will fall significantly - the reason being that the present price cap is based on an average price during the assessment period (mid-Nov to mid-Feb) when the market fell very sharply during that three month period, and so it still does not yet reflect a whole assessment period at roughly the level of present prices, which now seem to be bobbing around within a range. Unless the wholesale market  shoots up sharply in the next five weeks, a further fall is now pretty much baked in.

Beyond that, frankly, no one knows. If the trend appears definitely to be upwards again (which in my view it doesn't - yet) then now might with hindsight look like a good time to fix. However, as I said, all that has happened is that prices seem to have now settled in a range and it is a case of up one day, down again the next. Personally I am presently happy to be on E.On Next's Price Pledge Tracker which gives a small discount on the price cap and will fall if/when the cap falls in July. At the moment the Cornwall Insight forecasts/educated guesses for the two periods beyond the next one see only modest increases. Of-course that could change. In the end, you have to make a decision based on your own appetite for risk. 

This really is useful, thank you. I thought that future pricing would be worked out during this 3 month period now, but that does not seem the case. Yes I remember prices came down quite a long way, so if 1st July workings contain prices for most of February to the beginning of March then you would hope they will fall a bit further.
On that, I’ll think I’ll hang on!

Netexporter

If you want to save money, have you considered TOU (time of use) tariffs, like Octopus Agile or Tracker?

Scot_39

GSP said:

With Eon, I have just switched from economy 7 to a single rate as we were only using 10-15% of units at night.

The new tariff’s came in on 1st April and believe the next review or changes will be 1st July.

Over the past few weeks I’ve noticed the price of energy has been ticking up on the markets.

This is probably a really stupid question but if I choose to fix rates in this review window, is it best I do this well before the 1st July changes? Or can I leave it until a few days before the new tariff’s kick in?

You can pretty much guarantee that suppliers will be watching future pricing as closely as Ofgem and forecasters like CI.

Another place you might get unstuck is if something radical happens on policy - e.g. standing charges.

https://www.moneysavingexpert.com/news/2024/04/claire-coutinho-ofgem-standing-charges-/

So I'd be looking for low or flexible exit terms (e.g. supplier old to new fix or SVT for free) on any fix right now. 

What are the terms for the EOn Next fixes you are looking at.