Account Balance too high?

MikeJXE

Go for it

I hope it works out for you 

rp1974

waterman10 said:

Thanks for all your comments.  My monthly payment is £85.  I live on my own in a small flat and so am  a light user.

I've just listened to Martin's podcast and am thinking about switching to a fixed tarrif with another company.

If you do decide to switch that'll have the bonus side affect that you'll be repaid any credit balance that's due,the supplier has no choice in this matter.
Before you do switch though,make sure that the payment terms suit your requirements,as others mention variable Direct Debit sounds ideal for you as there is no credit balance.

MP1995

waterman10 said:

Thanks for all your comments.  My monthly payment is £85.  I live on my own in a small flat and so am  a light user.

I've just listened to Martin's podcast and am thinking about switching to a fixed tarrif with another company.

Just have a little check that your bill is actual and not estimated readings. You may have already done so but many have a shock come the time they leave their energy company thinking their direct debit has been covering their use and it has not.

Back to your questions £288 seems a healthy amount and I would leave it there for winter use unless you know your normal use and are happy to take out more.

pseudodox

Ask around friends & family if they are with the company you decide to move to.  If they are they should check if they can give you a referral code to earn both of you £50.  EDF are certainly offering this at the mo.

RelievedSheff

waterman10 said:

Thanks for all your comments.  My monthly payment is £85.  I live on my own in a small flat and so am  a light user.

I've just listened to Martin's podcast and am thinking about switching to a fixed tarrif with another company.

Our situation is not too dissimilar to yours. Our monthly repayment is £98 a month ( 3 bed detached, 2 people, 2400kwh electric, 5500kwh gas) Our account balance is currently £320 in credit.

We don't expect that we will use up all of our credit this winter (we are on a fixed rate until May 25) but we will keep it in the account so that we have no worries about keeping the house warm if we do get an unusually cold spell.

waterman10

I did a comparison on the Cheap Energy Club site and, given that I don't want a smart meter, the top result for fixed tarrifs is £47 (3%) EXTRA.  The best variable rate is with Home Energy and it's saving £37 a year.  I must admit I'm pretty confused about all this so I'd be grateful for any advice.  Would you suggest going with the fix even though it's more expensive or going with the variable one?

I'm guessing that's £47 extra per year?

Scot_39

Baselines are critical.

If you compare current July to Sep rates to a fix you have to remember the fix covers Sep 24 to Sep 25.

So covers Oct cap period - up 9.5% from 1568 to 1717 DD DF iirc and 3 more cap figures yet. 

Last winter Jan 24 rates were up on Oct 23, then Apr and Jul lower.  It migh do same this year or may not.

If you want pricing certainty - not a necessarily guranteed saving - then fix.

Fixing wasn't always cheaper - 2 year fixes would be at a premium to current rates - my sis last 2 year electric fix was Feb 2021 to Feb 2023 - stradlling most of peak crisis - her unit rates were near doubled her standing charge more than doubled - on 1 Mar 23 on SVT.

If your worried pricing may drop - leaving you overpaying - either total cap or the balance of SC and unit rates - then go for a low or ideally exit fee free fix.

Read the mse fix or not article

https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/
 
The future is never predictable.  Geopolitics right now is arguably looking more unstable in middle east than last month - Lebanon if really flares up and other Arab nations back it - could once again see energy rates shoot up - but Gaza and Red Sea shipping attacks were tolerated more than many expected due to high EU gas stocks and last years mild winter.  (Western backing of Isreal war in early 70s was the trigger for OAPEC oil export ban crisis - oil prices doubled causing econmic chaos in West - but then they have had many wars / conflicts since with less dramatic consequences to oil and more so gas pricing  - but that was when Russia was a more major supplier than now) 

Gerry1

There are no right or wrong answers, no One Size Fits All. Only you can decide what's right for you, and you need a perfect crystal ball as well.

In recent times we've had so many events that previously seemed unlikely: Covid, the Russian invasion, umpteen prime ministers and dramatic political swings, Israel/Gaza/Red Sea/pager and walkie-talkie bombs etc.  Coming up we might have Trump 2.0, China/Taiwan, North Korea, Monkeypox or some new plague, who knows?  A fix gives you peace of mind against nasty surprises, but might not end up having been the cheapest.  Remember to check the exit fees very carefully.

The Octopus 15M fix looks good with no exit fee.  It keeps changing so if you check every few weeks you might be able to fix again at a lower price, as well as extending the fixed period.

Alternatively you can ride the roller coaster of variable tariffs.  You might do well if prices collapse but you might regret your gamble if the Price Cap rockets. 🎲🎰

FreeBear

Gerry1 said: Alternatively you can ride the roller coaster of variable tariffs.  You might do well if prices collapse but you might regret your gamble if the Price Cap rockets. 🎲🎰

Or if you want to risk a real scary roller coaster, there's the Octopus Tracker & Agile tariffs. The former varies on a daily basis, the latter every half hour. Both can peak at £1.00 per kWh for electricity. Gas on Tracker can go as high as 30p/Kwh - Agile is electricity only.

I'm currently on Tracker, and have averaged 19p/kWh for electricity and 4.25p/kWh for gas since January. Getting a tad nervous as we head in to winter, but I can tolerate a couple of spikes as long as it doesn't last more than a few days. If prices tank, I'll be well happy.

Gerry1

FreeBear said:

Gerry1 said: Alternatively you can ride the roller coaster of variable tariffs.  You might do well if prices collapse but you might regret your gamble if the Price Cap rockets. 🎲🎰

Or if you want to risk a real scary roller coaster, there's the Octopus Tracker & Agile tariffs.

They may suit some smart meter aficionados, but waterman10 isn't one of them.

It also remains to be seen whether the Tracker and Agile tariffs are effectively loss leaders to promote smart meters and switching to Octopus.  They may not necessarily remain cheaper forever.