Should we fix our gas and electric for another year?

Tabby026

Hi we have a fixed 1year contract with Octopus that will end on 25th June 2025.

Our current tariff is
Electric daily charge 65.12p and unit rate 23.83p per kWh
Gas daily charge 28.91p and unit rate 6.15p per kWh

They have given us a quote for a new fixed tariff that would start on 26th June 2025
The new tariff is
Electric daily charge 52.90p and unit rate 25.36p per kWh
Gas daily charge 31.08p and unit rate 5.92p per kWh

My question is should we fix with them on this new tariff for another year, or go onto their flexible octopus scheme on 26th June, and then wait until after the 1st July to see if Octopus will give us a better deal, as it has been predicted that prices will then drop by 8 per cent.

Any advice would be really helpful. 

Thank you 

spot1034

The price drop predicted is for the backward looking price cap, whereas fixes reflect the futures market as it is at present. The reason there are presently so many fixes at a decent discount to the price cap is that they already reflect the recent drop in the market whilst the price cap has yet to do so.

You have to make a judgement as to where you think the market will go from here.  It's probably worth pointing out that last week it did firm up a bit, but whether that will continue or whether it will resume the downward trend in the coming days, who knows? 

I'd look at the whole market, not just one supplier (don't forget cashback or a referral from an existing customer if changing supplier) and the best advice would probably be to go for a fix which has no exit fees, either at all, or at least that won't be charged if you swap to a cheaper tariff with the same supplier.