Should I fix energy?

[Yellowdott]

Advice needed regarding energy crisis if there's any knowledgeable people here

My cheap tariff has now ended and I've gone from £55 a month to £77 a month on a variable tariff.

Should I go on a one year fixed tariff for £107 month or stay on the variable and hope it won't go up too much?

Thank you in advance for your advice!

Depends on the price per kWh as its that price that is fixed rather than the amount you pay per month

The new cap in April will be max 28p kWh for electricity and 7p kWh for gas

I’m staying on variable until April

Many I know are giving higher readings each month to their supplier….think about it

Have a watch of Martin Lewis from last night, his advice is to still stick with variable, I'm not going to attempt to explain why but he has a very good graph which he explains which also takes into account the expected price rise in October.

Martin Lewis show last night said don't fix.

I'm staying on the variable until I see where the price cap goes in October as the new April price cap is cheaper than the fixed tariffs I have been offered

No one has a cyrstal ball and no one knows what rates you've been offered

As the PPs have said, watch Martin Lewis and makes ure you understand how the system works. Ignore the ££ per month DD figures as the first step.

Thank you all! The ££ per month is based on my current yearly usage.

I'll need to work out how much it will be in April, I guess!

I'm sticking with variable, but am aware of the risk.

For our usage, variable on the April 2022 price cap will be £2400 per year, with the cheapest fix from our own supplier £2700 (a special loyalty fix).

Obviously if prices go up by more than £300 per year in October it will be the wrong choice but that's the risk you take. I'm sort of banking on them not being able to keep going up and up, because of the detrimental affect it will have on many more people who previously were reasonably comfortable but massive increases in energy prices, along with increases in NI contributions and higher interest rates making mortgages more expensive seeing huge drops in their disposable income so really noticing the affect.

@Yellowdott

Thank you all! The ££ per month is based on my current yearly usage.

I'll need to work out how much it will be in April, I guess!

Look at the price per kWh of the fix they are offering. If its higher than the price cap figures then you will pay more money than what you'd pay on the variable rate.

Many I know are giving higher readings each month to their supplier….think about it

For anyone not on a smart meter that's bloody genius! Would never have occurred to me. I bet there are thousands who won't think of it.

For anyone not on a smart meter that's bloody genius! Would never have occurred to me. I bet there are thousands who won't think of it.

I have no idea if the legalities of this, pretending to have used more electric and gas than you really have to obtain that product at a cheaper rate - fraud?

Yes definitely fraud! Although if you don't have a smart meter and you do a bit of research and planning...pretty unproveable I'd imagine.

It’s a good idea to feed in some higher meter readings at the moment I’d say…but only if you’re someone who’s billing is instantly adjusted to reflect the reading.

I think some people have often under read their meter to keep their bills over winter and the; ‘caught up’ over summer since the meter readers come so rarely these days.

Martin Lewis shouted about going onto fixed tariffs for about 2 years before this all got really bad. Lots of people did fix for as long as they could. Eventually higher prices will get them, unless energy prices drop (which is hoped for and broadly expected in. The next 3 years) but they will have saved a lot.

It’s always worth looking at the MSE website.

Look there too. To save money in other areas if your fuel bill will rise. You have to make savings in the areas it’s possible.

okay - I am very thick (just stating facts here) but what is the benefit to saying your're using more electricity/gas than you are???

Thank you to anyone who can explain!

@anotherbrewplease it’s because you will then pay for that at the lower tariff price

You’ll therefore appear to use less when it gets more expensive as you’ll have ‘banked’ cheaper energy

Likely outside of their T&C and imagine if you did it too aggressively they’d spot it.

Now I can see why they’re pushing so many of us down the smart meter route!

They also know what typical usage patterns are and your previous history so will notice if you use twice as much as last winter for example.

@Youngatheart00 and @BarbaraofSeville

Thanks so much for the explanation.

Hello. Popping in to let you know that we're doing a Q&A with fuel poverty charity National Energy Action about these energy price hikes on Wednesday 23rd Feb at 12 noon. The thread is now open for questions here.