Fix the energy tariff now or stay on standard variable.

[SophieHasOneQuestion]

I am with EDE and current tariff ends on 31st March.

I noticed that over the last 4 weeks, the my fix term tariff option has increased from £155 to £186 and this morning to £226.

I was hoping to stay on standard variable in hoping that better deal will come up, but it seems the deal is getting worse and worse.

In April, if ofGem increases the cap, will standard variable increase dramatically too?

Really appreciate and advice on if I should fix the deal (exit fee £100) or stay on the standard variable which is about £90 less.

Thank you very much.

Martin Lewis advised last week that if you can find a fixed tarrif that's only 25% or less above the April cap then you should fix. Any more than 25% above the cap and you should hold out. He said this was his best guess, and that it was hard to be any more specific than that at the moment due to all the changes.

twitter.com/MartinSLewis/status/1499690157884203012

The cap is to be reviewed again in October.

I’ve fixed at about 10% above the April cap, only managed to get 12 months though.

[quote Letsnotargue]Martin Lewis advised last week that if you can find a fixed tarrif that's only 25% or less above the April cap then you should fix. Any more than 25% above the cap and you should hold out. He said this was his best guess, and that it was hard to be any more specific than that at the moment due to all the changes.

twitter.com/MartinSLewis/status/1499690157884203012[/quote]
Thank you very much for the reply.
My fix will be £226, and SV is £132, the difference is £94, which is way above 25%, so according to Martin Lewis, I should stay put?

Of course I will take full responsibility of the decision.

Its the kWh price you need to look at. The price cap in April is shown here:

@dementedpixie

Its the kWh price you need to look at. The price cap in April is shown here:

Thank you for the reply. I am sorry that I don't understand. My current SV is £132, is this already factored in the April ofGem increase or in April £132 will likely become £200 (around 50% increase).

Thanks again.

You need to compare your unit costs as monthly direct debits can be misleading as they don't always equate to 1/12 of your annual usage at the price you are currently on, which is what you need to be comparing.

@SophieHasOneQuestion I would ignore the monthly payment and look at the price per kWh they are charging for the fixed rate. Monthly amounts are meaningless tbh and may not match your usage.

For example I'll show you the fixed rate I have been offered and you can see the difference between the price per kWh between it and the new price cap rate

@BarbaraofSeville

You need to compare your unit costs as monthly direct debits can be misleading as they don't always equate to 1/12 of your annual usage at the price you are currently on, which is what you need to be comparing.

These are my current charges:

Electricity unit rate: 53.01
Daily Standard charge: 32.15p

I still not relate (sorry, my first time to manage household deals)

Sorry, above is what they offer as fixed rate:

Write again hereL
Electricity unit rate: 53.01
Daily Standard charge: 32.15p

So for electricity that fix is around 30% more than the price cap and gas is 38% more

@dementedpixie

So for electricity that fix is around 30% more than the price cap and gas is 38% more

Sorry that was for my fixed rate not yours

Ooft 53p is expensive compared to the price cap rate of 28p in April

Are you sure it's 53p?
That's an 89% increase over the April price cap amount

Are you electricity only and are you on pre-pay?

Are you sure about those numbers and when are they for, now, from April, or a new fix you are looking at? They look very high.

There are slight regional variations, but the April 2022 rates can be found at:

www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/

The daily charge is around 45 p and the unit cost for electricity is around 28 p. You will probably be better off, or at least not significantly worse off by staying on the default tariff.

But it might be worth reading through all what Moneysaving Expert has to say on this. See if you can find a video or transcript from the last week or two from Martin Lewis explaining the ins and outs of fixing vs staying variable.

www.moneysavingexpert.com/utilities/how-to-get-help-if-you-re-struggling-with-your-energy-bills-/

@dementedpixie

Are you sure it's 53p? That's an 89% increase over the April price cap amount

Yes, please see screenshot.

My unit price for electricity is lower, but my standing charge is much higher. Not sure why the standing charge is so high.

Unit price: 32.53p

Standing charge: 48.53p

[quote BarbaraofSeville]Are you electricity only and are you on pre-pay?

Are you sure about those numbers and when are they for, now, from April, or a new fix you are looking at? They look very high.

There are slight regional variations, but the April 2022 rates can be found at:

www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/

The daily charge is around 45 p and the unit cost for electricity is around 28 p. You will probably be better off, or at least not significantly worse off by staying on the default tariff.

But it might be worth reading through all what Moneysaving Expert has to say on this. See if you can find a video or transcript from the last week or two from Martin Lewis explaining the ins and outs of fixing vs staying variable.

www.moneysavingexpert.com/utilities/how-to-get-help-if-you-re-struggling-with-your-energy-bills-/[/quote]
@BarbaraofSeville - Thank you so much for you guidance through this.
Yes, my fixed rate is (from now to March 2024):
Unit. 53.01p + Standard charge 32.15.

Standard Variable is:
Unit 29.64p + Standard charge 32.15.

It seems fixed is much higher than SV at the moment. The question is, after 1st April, will the standard Variable unit rate also shoot up by 14p (50%)?

And my flat is electricity only. No Gas.

And you might find that here are no fixed rates available for a while.

Shell's Fexible 7 is
Electric 27.865p/unit
Standing Charge 48.12p/day

Gas 7.367/unit
Standing Charge 27.22p/day

Exactly at the Ofgem Cap.

@SamphiretheStickerist

And you might find that here are no fixed rates available for a while.

Shell's Fexible 7 is
Electric 27.865p/unit
Standing Charge 48.12p/day

Gas 7.367/unit
Standing Charge 27.22p/day

Exactly at the Ofgem Cap.

Thank you, If I switch now, my fix rate will be 53.01p/Unit

• Standard charge 32.15.

It seems awfully high than the ofgem cap. I am with EDF.

The price cap is definitely rising in April, but by how much has already been announced.

Does the variable rate you have say when it is valid from? If it's from 1st Apri, then it shouldn't rise gain until October, when the price cap is reviewed again.

@anon2022anon

The price cap is definitely rising in April, but by how much has already been announced.

Does the variable rate you have say when it is valid from? If it's from 1st Apri, then it shouldn't rise gain until October, when the price cap is reviewed again.

Yes, the SV (Unit 29.64p + Standard charge 32.15.) is valid from 1st April.

Is it a better deal comparing to the fixed: Unit. 53.01p + Standard charge 32.15

You need to triple check that! That sounds crazy! Surely can't be allowed.

www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-energy-price-cap-affects-you

Have you tried USwitch?

www.uswitch.com/gas-electricity/guides/price-cap/

^If I switch now, my fix rate will be 53.01p/Unit

• Standard charge 32.15^

I don't think I'd take those, that's very high. Those numbers I posted before (The daily charge is around 45 p and the unit cost for electricity is around 28 p) are the April 22 price cap figures, so already include the upcoming big price rise, people are probably paying around 20 p a unit now.

It's criminal that suppliers are trying to lock people into two year contracts at almost twice the price that is already very high.

As an aside, all this talk of 'a 54% increase' is misleading, because the gas unit cost has gone up more than that, the electricity unit cost has gone up less than that, but the electricity standing charge has gone up a lot more than that, so unless you have a typical gas/electric mix, your price increase percentage could be quite different.