Fix for 1 year or 2?

ztkr

Using MSE Energy Club, I've found that the best value fixed price energy deals seem to cost pretty much the same for 1 year and 2 year fixes at the moment. Are you fixing for 1 year or 2? Appreciate there's no right or wrong answer but interested in hearing a range of views.

Bigphil1474

Fixing for 2 Years

Depends on the rate of course, but I fixed my gas for 2 years last year, and my leccy for one earlier this year. The gas price we pay is way below any alternatives I can find (we pay 5.35p per kWh), and electricity is fairly good at 20.67p. Think current prices are a little high due to the USA, but difficult to say how much they could drop if they ever do.

EssexHebridean

Fixing for 1 Year

As and when my current gas fix ends I will be opting for another 1 year fix - the world is simply too volatile at the moment to want to take on a 2 year, assuming of course that there are exit fees!

Chrysalis

Exit fees is the magic question, if they tolerable, go for the longer deal.

oldagetraveller1

Fixing for 1 Year

I opted for a 1 year fix, for gas and electricity, in May, 13 months to be precise.

bristolleedsfan

If 2 year fix is with a company that does not charge exit fees for subsequently changing to another fix e.g Eon Next or British Gas and cost is similar nothing to lose by taking 2 year fix.

ztkr

Thanks to everyone who posted so far. I have a shortlist of two deals, a 1 year fix and a 2 year fix. Price is more or less the same for both. Exit fees are £100 total for the 1 year fix and £200 total for the 2 year fix.

Scot_39

but as post above - do the fees apply to internal fix to fix or fix to svt even transfers.

it may be worth taking a slightly more expensive fix with a supplier who allows internal switches if prices do drop.

remember gas last month once again spiked back near Iran phase 1 peaks - and that built a 27% rate step into cap despite a lower initial price in Offem 3 m averaging.

Theres a lot of upside to future svt - middle east escalation and spread - and downside risk to fixes in current pricing - if get peace in middle east.

One spot check uk gas price currently c146p/therm in last few hours - up nearly 75% on 12m ago - but remains below Ukraine crisis peaks (regularly 200-300p, this time 4 years ago in July 2022, spiking over 600p at one stage)

If fix vs svt vs tracker was crystal ball before - its now completely opaque - even on a daily basis let alone long term.

fix for certainty not price is probably more valid now than since fixes disappeared post epg/Ukraine spikes and supplier fsilures - at least for a while - just as it was years before that before the presence and subsequent failure of so many cheap switch to save suppliers.