AIBU to ask: Is anyone actually fixing their fuel prices?

[FrankWelker]

Posted on here for traffic
Is anyone actually fixing their fuel prices at these exorbitant prices? We have been quoted over £699 per month for dual fuel with Scottish Power.
Or are people just not fixing and going to use less??
Really stuck with what to do!

It's a tough one. Every time they've said "only fix if it's less than X amount" but then the price cap predictions have gone up to even more than that. I would have told myself to fix back in October, but that's with hindsight. Maybe it would be a good idea to fix now, prices might go up even more, but it's a gamble.

Not fix, use less and pray that someone is forced to intervene...no idea if that's right though. But tbh £700 per month is beyond suffocating so also not alot of choice.

Not a chance. There is no way I could afford the fix. I would literally have to default on my mortgage. The only thing I can do is use as little as possible and enter my useage every month. I’m a single parent with debt after leaving DA relationship.

Couldn't afford the extra £330 even if I wanted to fix, just trying to cut down usage and hope there will be some intervention

Our latest fix offer is over £500 a month, currently paying £150 and acting credit, not a chance we'll fix now. Just praying for intervention

£700 a month is £8,400 a year.

Based on averages the worst price cap estimate I have seen so far for January’s rise is £6,000 a year. So well below what they are asking you to lock into.

You need to compare the kWh prices that the £699 is based on, and the standing charges quoted, against your current charges. If the difference is more than the percentage the price cap is expected to rise, you’ll be better off on the variable charge which will be subject to the price cap.

It's the rate that's fixed not the direct debit. So you can save either way by using less fuel. When the rate goes up in October, people who have not fixed will have a rise in direct debit (or however you pay). I fixed reluctantly about a month ago and am unsure if it was the right thing, but the rate I was offered is a lot better than the rates going right now.
We'll know more on Friday when they announce the new price cap for October.
Dark and stressful times for many people.

Calculator on MSE site might help:

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

Can't even if I wanted to, no other suppliers will accept new customers (if their websites even work, usually can't even get on) and current supplier says I'm on the best deal. So we're stuck

There has to be some intervention soon, I wonder if the energy suppliers are trying to force it with these insane fixes.

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

Not sure why link isn't working as on phone, maybe someone else can post a working one!

I'm guilty of never looking at our bills, as they were so low (£30 for gas, £30 for electricity for a 3 bed).

Are electricity and gas both measured in kWh? Does the standing charge differ between companies? Is it just the Kwh price that gets fixed in a fixed deal?

Not here, sticking with the flexible (so price capped) rates for gas for the time being. We had solar panels and a battery system fitted earlier in the year so we’re on an agile rate for electricity so we can take advantage of (relatively) cheaper off peak rates to charge the battery once we not getting much from the panels. And also doing everything we can to reduce our usage (already on the lower side so there’s not a great deal we can do there).

No, we are not fixing. Sticking with the variable rate, cutting usage as much as possible and hoping for the best.

I was working 4 days a week - I've asked my boss if I can go to full-time as what with rising energy prices, rocketing inflation and helping ds with his extortionate student rent come Sept, we really need the extra money.

I'm praying she says yes, but it's not guaranteed. I'll have to try and find an extra job if not.

We have an electricity pre-payment meter that is something we should have looked into changing, the house was rented before we bought it. So we can’t currently ‘fix’ our electric!

Scottish Power have sent details regarding changing to a Smart Meter but I’ve heard all sorts of horror stories regarding this so I’ve not done anything about it (I know, I know).

As for British Gas, we currently pay via DD, believe we are in credit due to overpaying during the summer months but looking at some of the fixed term estimates I don’t think I’ll bother even asking! We’ll just overpay now and send in meter readings every month.

I admit, I’ve let this slide a little as there have been lots of personal things going on in our family that have taken over everything else.

I'm not doing anything, just praying all the ordinary people who work for the fuel company's (the engineers, people on the phones etc) go on strike as presumably they are in the same situation as everyone else. Make it impossible for the companies to continue running.
Somethings got to give surely.

I'm not fixing either and will stay on the variable rate

@eldora both standing charge and price per kwh are covered by the price cap. Your bills should tell you how much energy you use for both gas and electricity

We are Scottish power too and just had our offer taking us over £700 a month!! I’m trying to find their current standard rates and failing! They don’t appear to be anywhere online!

Correct me if I'm wrong but I'm not sure if you/some of the replies understand what is meant by fixing?

By fixing you aren't committing to pay whatever they've suggested as your direct debit for the next year no matter how much you use- you're only agreeing to pay x amount per unit you use. So if they say"we estimate you will use 100kwh if electricity per hour each month and the fix will be 1 pound per kwh (not very likely prices or usages but for the sake of simple maths) so we will set your dd at £100 per month" you are not agreeing to pay £100 per month. If you use more than 100 units you will owe more than £100 per month despite fixing ,if you use less you'll owe less.

Regardless of whether you fix you can still try to use less energy so you can build up some credit and lower the dd amount.

Similarly if you don't fix and are planning on paying less than the direct debit amount your supplier has quoted you to fix, that won't necessarily work because after the price cap goes up in October, and then again in January and April, whatever the standard rate is is going to be very similar, possibly even more than the fixed rate.

Again sorry if everyone understands this and I'm teaching granny to suck eggs but there have been a lot of posts where it's clear posters don't get it

Tldr : fixing your rate is ONLY fixing the price per unit you will be charged, it does NOT mean you will use the exact amount per month the fix offer quoted as your direct debit amount - you could end up owing more or less.

And actually answering your q - yes I did fix towards the end of July- at the time against advice but am.quite glad I did now- seems likely I will overpay more than on standard rate Aug and Sept but then slightly less October onwards and significantly less from Jan if the current predictions come into play.

Kicking myself I didn't fix when I was offered 283 a few weeks back, Today's offer is 417.

I don't know what to do OP, I think I'm going to ride it out on variable rates.

I'm starting to feel like I did when covid was on the horizon, people were called scaremongerers for saying thousands would die, no way would we ever have a lockdown, schools would never close, etc. Now they are saying people won't be able to afford food, people will die in cold houses. Others saying the government will step in. Who to believe? What to do for the best? What a time to be alive. What I have noticed is my kids are super alert to the news and need reassurance and like during covid, mum, dad and grandma talk in whispers about what's been announced in the news. The older one reads stuff online and asks if we can afford 6 thousand pounds a year for electricity and, bless her heart, offers to get a paper round.

I kid you not having come back from Denmark I set my DD at what I thought was about right given the rises ok we haven't been using gas apart from hot water but I am hugely in credit and have been meter reading every month. If I had taken the fix they offered I would be £2000 in credit by now!!! I think a lot of it is a massive try to make money from placing money on money markets on as some will bite!

I have to be honest… I didn’t fully understand
Genuine thanks for spelling it out!

@FrankWelker thanks for that- !!!!

@latetothefisting

Can I ask what your tariffs are on your fixed rate?

We took a fixed rate in summer when our usage was low, assuming that the variable rate would exceed our fixed rate over Autumn and Winter when our usage is high.

If the govt intervene then we can exit back to variable and just accept we paid the higher rate for a while but we assumed there won't be a significant intervention and preferred the certainty of the fixed offer.

Ooo, MSE is telling me EON's offer is strongly worth considering. 😩