to set fixed now or wait

sesnowseo

I am in a fixed plan that ends 04/04/2026. My problem is that I dont know whether to fix now with a different company (I'm currently with Octopus ) or wait until they bring out their new prices which they say will be at the end of March (ish). I COULD have set up a fixed rate plan with British Gas last week at 14% below .. but in light of the USA/Israel v Iran issue and the subsequent tanker blocks - thats long gone. I have had no problem with Octopus.. but do I jump now or wait. A lot can happen in a month………… help !!

Brie

I'd be waiting in your case - at least for things to calm down a bit (hopefully)

My fix ends in May and I'm keeping an eye on things but don't see anything yet that's good enough to make me jump early.

Netexporter

I think I'd sit tight. Roll over to the SVT, which will take you to July and play it by ear. If you take a fix you will be stuck with exit fees to pay, if things improve in the medium term.

QrizB

It's defintely a dilemma, and you won't know which choice is the "best" until you look back on the results.

SVT:

• Cheaper than the fix now
• Still cheaper in April
• Unknown how much it will be from July

Fix:

• You know how much you'll be paying for a year (ish)
• More expensive now
• More expensive in April
• Unknown whether it'll be more expensive from July
• Exit fee, so will cost money if you leave before the end

I would suggest that if you absolutely have to have a fixed price, and there's no room in your budget next winter if we end up at 10p for gas / 35p for electricity again (like we did in 2022) then take a fix.

If you think you can ride it out, stick with the SVT.

A reminder of the Energy Price Guarantee capped rates from October 2022:

https://www.gov.uk/government/publications/energy-price-guarantee-regional-rates/energy-price-guarantee-regional-rates

Edit to add: we've had almost 15% inflation since 2022, so 10p/35p then would be more like 12p/40p now.

subjecttocontract

If energy prices rise by as much as has been suggested I can't see the energy suppliers honouring or offering fixed rates.

QrizB

https://forums.moneysavingexpert.com/discussion/comment/81912438#Comment_81912438

If the offer them and people accept them, they'll have to honour them or go bust.

We saw this in 2022/23.

The (much-missed) Zog Energy did everything right - bought their gas in advance so they could guarantee their fixed rates - but the wholesaler they contracted with couldn't supply and took Zog down too.

barker77

https://forums.moneysavingexpert.com/discussion/comment/81912411#Comment_81912411

I can’t see the government allowing that to happen they would have to cap lower

QrizB

I can’t see the government allowing that to happen they would have to cap lower

Lower than what, exactly? Lower than the 2022 EPG? Why do you think they'd be forced to do that?

Altior

https://forums.moneysavingexpert.com/discussion/comment/81912438#Comment_81912438

The supplier is meant to have hedged against future price increases and the regulator is meant to ensure that they do. They don't just gamble when offering fixed contracts. Well, that's how it is meant to be.

After the events of a few years ago, and it turned out the regulator wasn't regulating this part of the industry at all, as they are and were mandated to, I'm sure it won't happen again so soon. Not that sure, to be fair!

QrizB

Casting my mind back to 2022, we'd been used to gas prices around 3-4p/kWh and I remember seeing 12, 25 and possibly even 36 month fixes being offered at 5-6p/kWh.

At the time I chose not to take one of those fixes as I couldn't believe gas prices would remain that high for that long.

And then they did. One of those "expensive" fixes could have saved me a few hundred pounds, if I'd known them what was coming.

So you need to decide for yourself whether the current Middle East conflict is going to continue at a high intensity for months or years, or whether it'll quieten down in a couple of weeks and go back to a similar level of unneighbourliness to what we're used to.

Rupert_Bear

My fix with BG finishes on the 8 August and had been tempted to fix to Fuse. However I try to stay clear of minnows after my issues with Symbio.

So not doing anything at the moment and hopefully things will settle down.