Energy fixed term

scopio

I'm looking for advice rather than another issue.
My dual energy fixed term ends on the 23rd June 2025 I could fix on the present April to 30th June fix term which the cap has gone up by 6% but the July to September is estimated to come down by 8%, should I fix on the April to June or wait and fix on the July to September?

spot1034

The price of fixes has nothing to do with the price cap. The price cap is based on wholesale prices from a period some time before it begins, whilst fixes reflect present or very recent prices, and one might be going up just as the other is coming down. 

scopio

That said should I fix on the April to June or wait till the July to September?

MeteredOut

scopio said:

That said should I fix on the April to June or wait till the July to September?

Without knowing your usage and usage profile, no-one can tell you.

With that information, people would still be guessing.

Are you risk averse? If so, fixing gives you peace of mind, but it does not guarantee you will been better than had you stayed on a standard tariff. There are some no-exit fee fixes that you could look at (eg, EDF, where you can also get cashback via TopCashBack).

Have you plugged your usage figures in comparison sites and see what it offers?

spot1034

scopio said:

That said should I fix on the April to June or wait till the July to September?

Ah yes well that's the real question isn't it! Fixes have been cheaper than the price cap recently as the price in the wholesale market has fallen since the present price cap was set. That is why the prediction for the next price cap is that it will fall. However in very recent days wholesale prices have risen a few per cent, and if that were to continue, it might mean that if you want to secure a fixed deal, now would be a very good time. Last week might have been even better. 

But today I see prices weakening again, so that upward move might have been just be a blip, and the downward trend could resume.

Honestly, it's something no one can give definitive advice about. You have to make a judgement on where you think the market will be heading in the next couple of months. Otherwise known as a guess. 

Bungle73

scopio said:

I'ma looking for advice rather than another issue.
My dual energy fixed term ends on the 23rd June 2025 I could fix on the present April to 30th June fix term which the cap has gone up by 6% but the July to September is estimated to come down by 8%, should I fix on the April to June or wait and fix on the July to September?

There is no April to June or July to September “term” for fixes. Fixes change as and when suppliers want them to change. A few weeks ago Outfox the Market fixes were changing every few days…..

Martin has been advising fixing since last year. The price cap would have to drop dramatically more than its forecast to undercut any of the cheapest fixes that have been available.

vic_sf49

scopio said:

That said should I fix on the April to June or wait till the July to September?

Those aren't actually fixes. They're quarterly periods of the price cap, that affect the Standard Variable Rate.

If you're not on a fixed tariff, which are usually 1+ year long, you'll be the Standard Variable Rate.

One other thing to consider, if you do fix, is the ext fee. Some have £0 exit fees, so even though they're a fix, you can switch tariff/supplier without paying the "penalty".

Bigphil1474

Fixing your energy contract is like rolling a dice and aiming for an odd number. You can fix for peace of mind but may end up paying more over that year than if you hadn't fixed, or could end up saving a load. We were on a 2 year fix before Ukraine kicked off and prices ended up rocketing so we were saving a load compared to the prices available. We had a bit of a shock when our fix came to an end obviously.

We fixed our gas for 2 years last month as the price was only slightly more than we were already paying (£5 per year) but I reckon by winter we'll be better off, even though we might be a bit worse off after the next price cap change. Electricity is fixed for 1 year. If you can get a decent fix without exit penalty, then that's the way to go. If there is an exit penalty, you can usually switch with the same supplier and not have to pay the exit fee, so check Ts&Cs.