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jackywacky

I’ve used the Cheap Energy Club for a number of years but when I came to use it today I got confused because I believe they are based on today’s prices

My annual consumptions are based on Gas=£11238kWh, electricity= 2,530kWh

I’m with homeenergy.co.uk, their prices are going up on 13th October and if predictions come true the price cap could rise by 20% in January.

So should I switch to a supplier who can give me a price fix now and if so should I fix for 12 or 24 months.

This is Home Energy prices after 13th October

These are the results I got from the Cheap Energy Club today

Can anyone help please

Thank you

Edit

I've read this and still no wiser
https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/

Reed_Richards

For starters, pay little heed to the summary figures and look at the full tariff rates. That's the only way you can make a proper comparison.

jackywacky

Thank you,

I know no one can predict the future but 12 and 24 month fixes are available.
My guess is this Iran war will not last more than 12 months, if that guess turns out to be true then a 24 month fix may not be such a good idea.

What do others think?

QrizB

My guess is this Iran war will not last more than 12 months

Do you mean "12 months total" or "12 more months"?

When it started it was meant to be over within four weeks. We're now in the seventh month.

What do others think?

You need to make your own decisions based on your own circumstances, but I took an 18-month gas fix (to last two winters) and a 12-month electricity one.

jackywacky

Whether it's 12 months total or 12 months from now. The former will end as we come out of winter, the later would end as we go into the next winter. The time in between would be summer when energy use is less so either scenario would have less effect. But maybe I'm overlooking something?

Of course the decision will be mine but being a forum I thought I'd put it out there.
I'm just interested what people would do now if they were choosing a 12 or 24month fix.

Moneyspice

I'm with Home Energy too and got the same email regarding price increases on 13 October. The standing charge increase is minimal but the kWh unit energy price hike came as a bit of a shock; Gas up 13.27% and Electric 17.61% just as we head into winter! The MSE Cheap Energy Club comparison today is still using the OLD prices so be careful, also remember the variable tariff prices look almost certain to rise again in January. I've decided to fix for 24 months at a cost which is slightly below the new Home Energy charges. Given predictions of 20% further increase in January that seemed like a good gamble. When comparing fixed tariffs if 2 or more suppliers are close in total cost I go for the best Gas unit price (my main fuel use) and compare the exit fees. If prices come tumbling down (which I personally doubt) then I'm prepared to pay to exit an onerous contract.

Bigphil1474

When you do price comparisons, you do have to look carefully as they will either look at savings versus a mix of the remaining fix you are on then the variable rate for the length of the fix you are comparing, or compare it to if you stayed on the existing fix for another year, which you can't do anyway. If you look at the BG quote it is say it will cost you £200+ more for 12 months, but that seems to be against the current price you are paying, which ends in a week or so, not what Home Energy are offering. Big exit fee of course.

Whether to do a short or longer fix is crystal ball stuff. My 1 year gas fix ends in February, currently paying 5.35p per kwh. I could switch and get a fix now, pay more until feb then pay less than I would if I switched later, maybe, but most of my high gas will be used by then. My electric was a 2 year fix which ends in July - currently 19.68p per kwh. Pretty cheap compared to what's available now, but not so cheap when i fixed.

Personally, I'd expect Iran to resolve itself within the next 6-9 months and energy prices drop a little, so am putting off switching for now. I thought the Ukraine war would be over with a year though. If you can get a fix with no exit fee, or at least go with a company that is likely to have lower fixes available and doesn't charge you for an internal switch, you could avoid being locked in at a higher price should energy prices come down.

jackywacky

Thanks Moneyspice and BigPhil.
Yes the MSE Energy Club is still using the old prices which makes things difficult, I'm used to clicking a button and getting a comparison that I was happy to rely on.
I'm dreading trying to work it out for myself

Maybe I should wait until the Energy Club prices update. Or are there other calculators I could use.

Moneyspice

Based on the stated usage 11238 and 2530 I worked out with Home Energy from 13/10 your Gas cost will rise from £875 to £980 per annum (12%) and Electric £683 to £795 (16%). Total fuel bill rises from £1558 to £1775 (£217p.a. or 13.92%).

All 3 of the fixed tariffs you posted are within £16 p.a. of your new Home Energy prices and as I say another big increase 1 January is widely predicted i.e. Home Energy could go up again January? A fixed rate would protect you from that over the colder winter months but looking further ahead is far less predictable. If budgeting is important to you then locking in 12m or even 24m makes more sense that trying to ride out the storm on a variable tariff? Note the VAT 0% on electric is committed only for 6 months so even fixed rates could rise after that.

Based on personal experience I would avoid British Gas due to their billing systems, they also have the highest exit fee if prices tumble during the fixed term and you want to bail out. Your search criteria seems to have filtered out Outfox Energy? They offer a middle ground 18m fix with £150 exit fees that in my region undercuts both BG and E.ON. Hope this helps and Good Luck!

jackywacky

Thank you for sharing, it's most appreciated🙂

jackywacky

For anyone interested I went for a Fuse 24 month fix.
When Home Energy prices rise next week they will be within a couple of pounds the same as Fuse.
If the prices rise in January, which most say they will I'll be saving.
If at anytime it turns out it was the wrong choice it will cost £100 to leave.
I'm switching with Topcashback Energy Compare and all being well I'll get £44 cashback

Thanks to everyone who contributed.