To have no idea whether to fix energy tariff or not!?

[LazyJayne]

Electric only household, no option of gas. Not able to install immersion or storage heaters so switching to economy 7 is a no starter.

Currently pay 28p per unit of electricity. Cheapest fix available is 67p per unit.

Usage last year (when we were paying 17p per unit) was 8000 units (largely thanks to electric radiators). With the standing charge, the total bill was just under £1500. This was covered by a direct debit of £125.

If we use 8000 units at 28p each (current price), we'd be paying £2240. The standing charge has doubled, so would be about £2500 in total. A direct debit of £210 would cover this.

If we use 8000 units at 67p each, we'd be paying £5360 a year. With the standing charge, this would be about £5600. This would require a direct debit of £470 a month to cover, which we can't afford.

Obviously we'll have to reduce our usage. We work from home so usually have the radiators on in the winter in the rooms we work from (living room and bedroom respectively). We don't heat the rooms much - usually to about 18 (any lower and we start to get mould - we need to run a dehumidifier for several hours a day as our home is very damp and this isn't helped by the fact that we have to dry washing inside as there's nowhere outside to dry it).

We're thinking of staying on the standard variable tariff, which we know will go up in October to about twice as much. Obviously if it increases again and ends up over 67p it would make more sense to fix. Unfortunately, by the time we know whether it will go up above 67p, this fix will no longer be available, and the new fix on offer would be even higher.

If you were in our position, would you fix now or stay on the variable rate? We'll reduce our usage either way.

How long is the fix for? Prices are going up again in January if the government don't do something

What are the exit fees on the fixed tariff?

That's the problem, really. No one knows. It's a gamble either way. If you value certainty then it might be worth fixing: MSE has a calculator for you to check whether something is a 'good' deal or not, but all of the fixed rates involve paying eyewatering amounts - but then the variable will too.

Check out Money Saving Expert and their calculator for the latest advice.

Thanks, unfortunately their calculator is for dual fuel only

Has anyone here fixed on a high unit rate?

You can just leave the gas section at 0 to get the calculation for electricity only

I'm dual fuel and have chosen not to fix as the unit prices are crazy. I'd rather not pay the higher price now.

October price cap is supposed to be around 52p/kwh and 46p standing charge btw. Dont know the January predicted price

For electricity

I chose not to fix as it was double what I’m paying now on the variable rate

Maybe I’ll regret it. It’s so hard to know either way

I’m with eon and fixed my tarriff in June. The advisor I spoke to told me that while my prices were fixed, with my particular tariff, there were no charges if I wanted to change to a cheaper tariff if prices dropped. It might be worth speaking to someone on the phone and seeing what they can offer.

Are you able to fix? British Gas doesn't allow me to do it now. Not that I'm planning to, just wanted to check.

You currently pay near the top end of the current price cap so it's reasonable to assume you will pay 51.9p per unit from 1 October. It's expected to rise another 52% on 1 January to 79p per unit. MSE is fairly confident of that percentage. Standing charge could rise similarly. Another price cap review in April, possibly 23% rise.

So you can calculate what it will cost at those rates for sept , then for Oct-dec, jan-mar and apr-jun. It's anyone's guess what jul-sep 2023 will be but add something in for that.

Then compare with the price fix you are being offered.

Trouble is, we don't know what schemes might be introduced to help people and if it will be applied to everyone or just those on standard variable tariffs.

You're basically gambling on prices going up over your fix rate and no government assistance (which seems a reasonably good bet but who can tell?).

If we get to Jan and something changes and rate goes down or government do something then you'll have spent more on that higher rate in winter months than you would have staying on variable. But if price goes up again and remains high for the rest of your fix term, then you'll have saved money.

No one can really say for sure. You have to think of your own level of risk, budgeting, and optimism in things changing! I'm personally not fixing because I don't think Jan's rise is feasible without something happening, but I may be back here in Jan eating my words

We were offered a fix at 66p for a year and 30p standing charge. I roughly worked out that any savings assuming per kwh price is at 70p jan-march then 75p april-june would be wiped out by paying 66p through September. So we're staying on the standard variable..its so hard to work out though. I think a lot of people are panic fixing, which is understandable.

Yes basically doing what @hugasaurus is.

I think any additional government assistance, which will surely have to come if prices continue to rise at these rates into next year and beyond, will have to be separate to the unit rates charged for gas/electricity.

Otherwise, the people who've spent the summer paying extra because they've signed up for a fix to protect themselves from increases over winter will be disadvantaged if base prices don't go up as expected, eg if a subsidy is given to the energy retailers to allow them to sell at unit rates lower than what the cap would be based on wholesale prices.

I might be tempted to hang on until next week now. Surely the government has to do something and the pressure will massively be on the next PM/Chancellor to sort it out. I'm just parking it as an issue until next week and then will have another panic if nothing changes!