Should I leave my current fix (ends in May) to go on another fix ready for the price cap rise?

l.c.elliott

My current tariff is octopus 12m fixed May 2024 v1. I like the rates. However, with it ending in May 2025 and the price cap expected to rise, I'm worried I won't get another decent fix so thinking if I fix now that gives me peace of mind for another set period. No exit penalty currently which is good.

Upon doing a comparison, Eon have a 16m fix. The electricity rate is similar to what I'm on now and the standing charge is lower than what I currently pay. But for gas, unit rate is 1p higher and standing charge is pretty much the same.

What would you do?

For context, we are quite high users.

la531983

Providers are fully away of the predictions for the next few quarters and these will already be reflected in current fixed offerings, there wont suddenly be a slew of new products the same day OFGEM officially announce the next cap.

FreeBear

l.c.elliott said: Upon doing a comparison, Eon have a 16m fix. The electricity rate is similar to what I'm on now and the standing charge is lower than what I currently pay. But for gas, unit rate is 1p higher and standing charge is pretty much the same.

For context, we are quite high users.

Still got a few months of winter to go, and if we have another Beast from the East, you'll have a big surge in gas consumption. But if rates shoot up before next winter, you'd end up paying less on average over the 16 month term.

Polish your (crystal) balls and flip a coin.

spot1034

Just as it's entirely possible that rates could rise further, it's just as possible that by May we could be seeing cheaper wholesale prices, enabling suppliers to buy in advance at a lower price and as a result offer cheaper fixes. No one knows, and if you have a good rate now I'd stick with it and deal with the future when it comes, if you see what I mean.

AndyPK

On the email that cheap energy club sent out, I wish they had put a line on the prediction graph to show the Eon 16month fix.

AndyPK

I'm in a similar ish position to the first poster. Fix ending in June. Wondering if it's worth fixing in now for next winter.

Looking at the graph (on the email CEC sent out) for an average user. 
Worst case, it's probably going to go up £90/year over the current standard rate.  

The prediction for 10 months time, probably isn't great anyway. 
I think I will stick......

Get the cheap rates now, for this winter.

Be nice if you could choose your switch date, but it doesn't seam to give you a box for that

mmmmikey

Personally, if I was in the situation I would fix but I think it really comes down to your appetite for risk and personal financial situation. My reasoning is that although that as things stand it's probably anyone's guess as to whether you'd be better or worse off by a few % by switching. But the world is looking increasingly unsettled and the risk of Donald Trump doing something that destablises world trade and causes an energy price shock is very real. I doubt he will but it's not a risk I'd choose to ignore. The big advantage I see in fixing now for 16 months is that you protect yourself from the risk associated with a volatile market. Personally, I'd go for the guarantee of fixed prices rather than take the gamble on the possibility of slightly lower prices. But each to their own - lots of folk would disagree with me, it's not that I think they're wrong it's more that I'm the kind of person that values certainty.

AndyPK

I think europe (germany?) has stopped taking gas from Russia. The agreement ended.
That and the fact our UK reserves are low, due to cold weather is probably pushing up price predictions

Chrysalis

If you on a good fix I would make the most of it and stay on it, thats what it is there for.

Littlema333

I'm with Octopus on fixed rate until May 25. Also unsure whether I should go on the new Fixed Rate deal of 16 months now, just over 90 days away. Yes it is more expensive than what I currently pay & I agree with a previous comment that you should be allowed to switch when your current deal ends. Wonder if there will be no good fixed rate deals once the price cap goes up in April? Awful that we are held to ransom like this.

RelievedSheff

We were in a similar situation with a fixed rate due to end in May. A couple of weeks ago I opted to fix again with the same supplier for a further 12 months on a tariff that was very similar rates to what we were already paying.

Glad we did now as that tariff has been pulled (along with all the similar priced ones from other suppliers) and the forecast for energy prices is only going up.