Fix ends in November, should we consider changing now?

Cinderella77

I’m on a good rate fix which ends in November. Given there might be no good rates available then, should we consider switching now and tying in a fix till next May and suck up exit costs, or wait it out and hope there will be some decent deals in October? Thanks

Rodders53

Coin toss?

List your current rates and consumption numbers: now to November and annual May to May (averages for last few years). Plus the exit fees.

List the best fixed rate(s) you can find.

Work out the total cost to May next year assuming you can get the same as the new best fix from Nov to May 27… plus the exit fees…

Does one save money? Staying put vs switching? That may guide you.

Repeat with a best guess of a higher rate Nov-May 27 for the stay put calculation.

A spreadsheet should help you to calculate different scenarios.

Reed_Richards

On 1st April electricity charges were reduced for everyone, even those on fixed tariffs. But my impression is that these reduced rates have not been carried over to new fixed-rate contracts. If I'm right, you might see your 1st April reduction reversed if you switch now. Personally, I will hang on to my current fix until it expires in December.

twopenny

I got charged an admin fee with a new deal the supplier offered me. I rang to cancel because of this and got the contract minus the admin.

Watch out for added costs

Scot_39

@Reed_Richards 

On 1st April electricity charges were reduced for everyone, even those on fixed tariffs. But my impression is that these reduced rates have not been carried over to new fixed-rate contracts. If I'm right, you might see your 1st April reduction reversed if you switch now. Personally, I will hang on to my current fix until it expires in December.

the same budget (75% of RO on electric and Eco) price shifts to tax - not actual cuts - were applied to fixes and variables.

the same price rises - like £69 in Apr for networks RIIO3 milestone 5 yr review and £18 for Capacity Market Scheme were not (luckily - more so for duel fuel - users on cap those rises offset in large part by drop in direct wholesale / gas).

And I suspect that and the new wholesale rates they will have to hedge at explain the big differences on latest vs older fixes.

(OF course to be fair if the £92 RO cut is reversed in 2029 as budget red book planning - I assume those accepting the saving on fixes now will happily accept it being applied straight back onto their fixes then)

Nor depending on fix start dates will the rates have included equivnetwork and policy / govt for Oct and Jan cap rises.

[in terms of just non wholesale variations - from Ofgem cap letter costing summaries, over 6m / last 3 caps costs inc network cost estimates (inc higher renewables curtailment / balancing) and govt policy whd, nuclear etc) - budget meant variable costs went back to c£30 (*) above Sep levels.

(*) £162 inc vat added in Oct (£17 whd+£24 networks ex vat) , Jan (£14 nuclear, £7 whd, £9 benchmark review) and Apr caps (£66 networks, £17 CMS), £131 (£133 @2025 rates) RO and Eco moved from bills to taxation funding (assuming eco scope of work rolled into Warm Homes Plan as well)]

but those rises and of course the current higher wholesale costs will be reflected in new fixes.

its a definite crystal ball call - but ir worried there are potential upside risks with Iran unresolved. Like todays FT headline is on reports warning of reserves crunch by June for oil, not sure when or if the same may hit gas and so our energy bills - as so far uk has remained for now at least below Ukraine crunch era peaks of 3-4 years ago).

Securing next winters gas and electric rates might not be a bad idea if worried - but looks as if suppliers locking in at higher exit fees from MSEs curent list of fixes - Fuse now £100 per fuel - others £75 etc - in case they get caught on a price drop after hedging supplies for fixes - so even tgey maybd crystal ball gazing on direction in medium term ??.

https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/

Cinderella77

Thanks, yes bit of gamble, and current fix ends at the most expensive time, so very likely will end up paying more on the next fix, but exit fees prob outweigh switching now. Unless i can move to another tariff with my current supplier ( FUSE ) and try and negotiate on the fee to move internally.

sheffieldeagle

https://forums.moneysavingexpert.com/discussion/comment/81984707#Comment_81984707

Would be interested to know if Fuse let you do that?

Cheers

Cinderella77

https://forums.moneysavingexpert.com/discussion/comment/81989010#Comment_81989010

Yes they will but the exit fee still applies, although I went on the chat and they agreed to a lower exit fee if switching internally. In the end though I decided to stick with my tariff as there is still 6 months left on a decent unit price and hope there will be some offers around in Oct!