Best time to switch electricity only deal?

remoulder3

HI,

I am on a fixed electricity only deal with EDF that expires at the end of June, and wondering if it would be better to switch to another deal before the price cap announcement, i.e. are available deals likely to be worse after the announcement?

Neil_Jones

https://forums.moneysavingexpert.com/discussion/6669853/best-time-to-switch-electricity-only-deal

You can switch whenever you like, you're in the 49 day window if your deal expires at any point in June so exit fees aren't a problem. If you get it confirmed by the supplier before it gets withdrawn it should be honoured.

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

remoulder3

Thanks Neil, the current deal doesn't have any exit fees anyway, so wasn't worried on that point, and I have read the article you mentioned but this doesn't address my question as I am not on the cap. I could switch to a new deal now but am happy with the tariff rates I get on the existing deal, and as I still have another month to go, don't want to switch to what will be likely more expensive rates if I don't need to. But with the cap announcement imminent, I am wondering if rates offered after the announcement will be less favourable than those available now?

QrizB

Here's what I suggested to someone else earlier this afternoon:

The thing to understand about fixed-rate deals is that they're always evolving, depending on what wholesale deals the energy suppliers can strike with their own suppliers.

They don't follow the Ofgem cap and can (& do) change several times a month.

If there's a fix you like the look of, take it. Subject to exit fees or your own supplier's rules, you can always change your fix in a month or two of prices plummet (eg. if someone does a deal to open the Hormuz strait).

remoulder3

If there's a fix you like the look of, take it. Subject to exit fees or
your own supplier's rules, you can always change your fix in a month or
two of prices plummet

Whilst that is certainly true, all of the current deals I've looked at have punitive exit fees with some per unit rate increases of between 40-100% on my current deal. So it is quite likely that once I've signed up to a new deal, it is unlikely to be worth while switching again unless things change drastically, as any savings I might make would not be enough to compensate for the exit fees being asked. The other option I have considered as a low user is to let my deal expire and take my chances on the cap in the hope that things change prior to October, though it seems the cap is likely to increase again even if the straits re-opened tomorrow?

FreeBear

When I was coming to the end of my fixed back in January, I had started looking at the rates during December. The new tariff was a little more than I was currently paying. Locked in the new tariff to start when my old one expired. From memory, the new fix was on par with the price cap, but that went up again in April, so I feel I got a good deal.

But… These things are always a bit of a gamble. Sometimes you win as prices keep increasing, other times, you loose as they drop. In the current volatile market, I suspect prices will carry on going up for the rest of the year.

QrizB

Whilst that is certainly true, all of the current deals I've looked at have punitive exit fees with some per unit rate increases of between 40-100% on my current deal.

Some suppliers let you switch fixes (without switching supplier) without imposing their exit fees. BG do, and EON might?

If you're coming of fix now then yes, unit rates are much higher than they were a year ago. The SVT is also relatively high even before July's expected increase.

Bigphil1474

OP, last year I switched with BG twice in about 3 months. Just jumped from one fix to another that was slightly better. It may be better for you to switch now and pay more in June that your current fix, but less in July to May than what you might get later. Obviously, these companies aren't daft so exit fee or not, they get their money either way. Personally, I'd switch while I can find a decent deal rather than wait and find the decent deals have all gone.