When to switch

MartusJK

Hi there, hope you can help an occasional visitor here.

Circumstances are fairly "standard", older couple living in 3 bed bungalow with gas central heating, electric cooking/showers etc, no special needs.

My fixed deal with Eon has just ended and I can see all my future options on the cheap energy club.

I am sure you can appreciate that to someone not following all of this all the time in detail it all looks very confusing. I think on balance its probably best to go for another 12/13 month fixed deal as future rises are very likely unless anyone advises strongly against that?

We have now been put onto something called standard variable Next Flex tariff, they say our monthly payment will remain exactly the same (until cap changes first July) but they don’t say if we are actually paying more now per until of gas/electricity.

Therefore, my main question is when exactly to start a new deal?? Should we leave it until just before first July to maybe get some better last minute deals, or is it the opposite, grab the best one now as they will deteriorate??

Many thanks for help with this, please do keep it quite simple for a non-expert on this complicated subject!

QrizB

Therefore, my main question is when exactly to start a new deal?? Should we leave it until just before first July to maybe get some better last minute deals, or is it the opposite, grab the best one now as they will deteriorate??

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).

Ms_Chocaholic

You have a certain number of days before your fixed rate ends when you can switch without being charged a fee, I think it's 45 days.

Arunmor

Today. The new Price Cap will be announced tomorrow for October and that is expected to be 12-13% higher and possibly another 4-5% in December.

I have run the sums on mine currently on a low fix of 18.62p Electric only that doesn't end until 1 Sep taking into the account exit fees, and 4p higher fix etc I might save around £100 if I did it today compared to July. Have decided to ride my luck.

You aren't in my position and can change now. I wouldn't be taken longer than 12-15 months, by then hopefully the war will be over in the Middle East.

MartusJK

Many thanks for replies. Looks like a fix ASAP then? Unfortunately all the fixes on cheap energy club all have exit fees which I dont like but I suppose we are pretty sure about the future rises - though with trump around who knows anything anymore!

Brie

for me it's a balance between having a decent fixed rate and relatively low exit fees (but preferably zero). It may be that a great deal comes along and with a low fee you may still win when switching mid contract.

Rodders53

EoN do provide the unit rate and standing charge costs if you drill down their offers to you in the account (and/or app).

Your previous bills will show the unit prices paid under the old fix. You've left things late if you have moved onto the Next Flex tariff with them.

All current fixes have exit fees… EoN used to waive exit fees if moving to an alternative EoN tariff further down the line. (Did for me when I fixed, then got an EV and moved to EoN Next Drive early last year.)

MartusJK

Thanks Rodders, yes I have just emailed them to see if I can simply transfer onto their Next Fixed 12m Exclusive v1, fixed for 12 months, Early exit fee £ 100 which just happens to be the cheapest one I can see curreently and should give me a Yearly saving £ 86 (-4%) (better than any increase though you spend a year hoping they dont go back down dramatically!)

bristolleedsfan

https://forums.moneysavingexpert.com/discussion/comment/82012601#Comment_82012601

Taken from todays MSE newsletter -

Bigphil1474

OP, worth remembering that the exit fee isn't usually payable if you switch to another fix with the same supplier. My electricity is with British gas and the fix was due to end on 1st July. Their alternative fixes were more expensive so I was waiting to move elsewhere. Some time last month Money Supermarket did a short term offer with British Gas which was only marginally more expensive than my current deal. So I switched via Money Supermarket from British Gas to British Gas. No exit fees and an extra 10 months on a cheapish rate. Worth checking regularly.

The_Groat_Counter

https://forums.moneysavingexpert.com/discussion/comment/82012936#Comment_82012936

For what it's worth, EDF do charge the applicable exit fee if changing to another EDF fix (whilst still in contract for the original fix) .