Fix now or wait?

MoneyJ11

So I have a pretty good fix with British Gas that is due to finish early December. The rates are predicated to rise a minimum of 22% in January.

Would it be better to continue on my existing tariff, enjoying cheaper energy until the end of November, and see what tariffs are available then or fix now and be protected against any raises in tariffs available in a month or twos time?

What would you do?

tlcgrantham

https://forums.moneysavingexpert.com/discussion/6686949/fix-now-or-wait

I would stick with BG for gas and roll over on to SVT at around 8p per KWh until end of December and see what’s on offer then. I would switch Electricity to Tide Lifestyle tariff by 100 Green. It has no exit fees and fixed till October 31st 2027 at 31.4p per kWh except:

Daily 3-6am, 12-15pm & 19.30-22.30 15p per kWh + every Sun 12-14 Free

Daily Charge is 51.01p

Even if I didn’t load shift at all to the cheaper slots I would save £££ compared to the predicted Price Cap come January. Prices are for East Midlands.

But that’s me. You have to decide for yourself.

sheenas

Predicting future energy prices is a bit of a fouls game IMHO. Go with what you know, and if you are more risk averse then fixing now will get you past winter. Picking a tariff with no exit fees will allow you to jump ship if you find a better deal.

DamTiger

https://forums.moneysavingexpert.com/discussion/6686949/fix-now-or-wait

I don't have any advice I'm afraid but I will follow the answers with interest as I am in the exact same situation (I took the 1 year MSE Nov 26 gas fix with BG).

It's looking pretty grim at the moment, switching to the cheapest fix now would up my gas bill from £973 to £1704, ouch.

What_time_is_it

How much gas will you use between now and the end of November? Probably not a huge amount. I’d be inclined to fix your gas now. It’s looking like it will be between 10 and 11p a unit in the Jan to Mar period, and if you take up a 12 month fix now you will be able to switch again without exit fees before you turn the heating on next Autumn.

For me, I would fix now.

What_time_is_it

https://forums.moneysavingexpert.com/discussion/comment/82170728#Comment_82170728

Those £numbers don’t really mean anything.

Estimate how much you will use between now and your current fix end date, between then and the end of Dec, and between 1st Jan and 31st March.

For the first period work out the difference in price for that amount of gas usage between your current fix and the potential new fix. This will be a COST.

For the second period work out the difference in price for that amount of gas between the current SVT price in your area (about 8.5-9p a unit?) and the potential new fix. This will likely be a small saving.

For the third period work out the difference in price for that amount of gas between the potential SVT (around 10-11p a unit) and the potential new fix. This will definitely be a saving.

Add the 3 together and that is a good indication of your saving overall.

Assume you won’t use much gas at all between April and September 2027, and note the exit fees too as these become an extra cost should a better fix become available.

Bigphil1474

OP, do you have separate accounts for gas and electric, and 2 separate fixes? I have a BG gas fix that ends in February, I've worked out that it's far better to stay on my fix and wait until nearer that date rather than re-fix now. Depends on your rate. We used 1,050 kWh of gas last November, so the difference between the best BG unit rate on offer now (7.89p) and our current rate (5.35p) would mean a price difference of around £27 just for November. We used about 5,000kWh in December to January so we are definitely waiting until after then. Fortunately our electric is fixed until July.

I could leave BG and probably get a better fix than the 7.89p, but then I'd have a £50 exit fee. Would need to get 7.4p a unit or less to make that option better.

The upside with BG is that if you fix to start from 1st December, you could switch to another of their fixed tariffs e.g. in April, if rates drop down or a better fix appear. If they continue to climb, you'd be covered.

Newbie_John

I would stay with what you have until it ends and then fix to a new 12 months deal.

Ive seen a lot of new fixes to be longer - 24 months - and all come with high exit fees £100+.

Prices now are heavy related to war/wars and hard to predict where we will be in 2 months, will they end, escalata?

spenderdave

My EDF fixed term comes to an end at the end of November. I had a look at what they are offering me at the moment and none of them are attractive, a large increase and as Newbie_John says the (expensive) 2 year deal has a £100 exit fee. I guess I wait to see if anything more attractive comes up before but it looks at the moment that standard variable is the best option even with the forecast high increase in January.

TMMS171026

https://forums.moneysavingexpert.com/discussion/6686949/fix-now-or-wait

I am in a similar position, again BG but mine doesn't finish until Feb 3rd, so I'm tied in on exit fees until Mid December. I think all the decent fixed tariffs will have gone by then. There are 2 year fixed available now, and with the Ofgem announcement I'm wondering to pay £97 and get on a decent fixed before we have to start paying the "switching penalty". I would probably fix now if I was you, tariffs are already drifting upwards and I think the usage amount over 5 - 6 weeks will not make a huge difference.

bristolleedsfan

https://forums.moneysavingexpert.com/discussion/comment/82173977#Comment_82173977

Not completely tied in being as B.G typically allow switch to another of its fixed tariffs no exit fee payable.