Confused over capping my energy

valleyboy22

Hi all.

Saw martins show last night regarding energy prices and how it might go down a bit in July.

I am currently with E-On next and my fixed price cap runs out in July, so i was going to hold off until then. He mentioned that people should cap now before this happens, but i am confused on why. I thought waiting until July when mine runs out would work out a little cheaper due to the energy prices lowering slightly.

Can anyone help me on this please because i am so confused don't want to sell myself short if doing the wrong thing.

Thanks

Ayr_Rage

Fixes are based on FUTURES so what is available in July could be more expensive than fixes available right now.

The SV rate is likely to fall but the same cannot be said for fixes.

The person in question on last night's MLMS was on the SV tariff so was advised to fix now as they can be up to 18% cheaper.

If you are not within the last 49 days of your current deal you have to take into account exit fees, if applicable, so you'll have to do your sums.

MWT

You are confusing 'fixing' and the cap on the standard variable tariff (SVT).

Your fixed price tariff does not have a 'cap' it has a fixed price for the energy you use.

The SVT has a cap that changes quarterly.

When the quarterly cap on the SVT changes it does not automatically have any effect on the fixed rate tariffs that are on offer, those rates can change at any time.

Currently there are some fixed rate tariffs that are offering better rates than the ones that were available a couple of months ago, if your fixed tariff has no exit fee then it can be worth changing now.