Price cap increases- To fix or not to fix?

Amusing quirk of fixed prices

In May last year, I grasped the nettle and fixed my tariff for a year on the Loyalty plan. The main instigator was the lower standing charge, which weighs heavily in my bills. Then, earlier this year, I spotted some favourable rates just ahead of the 1 April increase in the price cap, and decided to switch to the Extended Fixed plan (27/02/2025), still hoping to avoid a significant rise in standing charges later this year. 

Last week, I remembered the anniversary of last year’s fix, so I thought of comparing what I used to have with what I now have. This was the result:
  

  
By sheer accident, the annual cost on my current plan is to a penny the same as it would be on the plan I started a year ago and abandoned in March this year. It’s still £33 cheaper than the standard variable tariff, and £14 less than the latest extended fix.

I've just been taking a look today myself, my current 1-year Fixed Loyalty ends on Aug 27th so 3-months off.

I'm dual fuel which adds an extra dimension.

On my phone at the moment so can't add a shot of my comparison spreadsheet yet, but if I ‘Tariff hopped’ now: 
The latest 1-year Fixed Loyalty (22-05-2025) for the next 12 months would save me £36,69 (I think I remembered the pence right) a year over my curent fix.

The 1-year Fixed is similar - in fact it's only 14 pence a year more than the ‘Loyalty’

The ‘Extended’ (15 month) and ‘2-year’ are also both cheaper than my current, but not by as much as the 1-year fixes.

For now I'll just keep an eye on them, but may ‘hop’ next month to get my fix start/end aligned with my monthly billing period.

Hi all, 

Hope everyone is well. 

My contract is up for renewal and I am not sure which tariff to pick. 

OVO just released their new fixed tarrifs very recently but they are pricey, estimated usage over £2K and above for the year. 

The variable one at the moment is cheaper.

Given the current situation around the world, which is the best option to pick? 

Has anyone else seen and or in the same situation? 

Thank you 

Keep your eyes on the fixed tariffs on offer they change all the time, and should be cheaper after April 1st.

How long is left on your current one? You are aware that the rates for both fuels wiil go down on April 1st, even existing ‘fixed’ rates will go down.

To answer the other question, when prices went daft last time I went to Standard Variable until the offered fixes got reasonable again.

(I've got till August on my current fix so am looking forward to the April rate reductions and will worry about the predicted July increases as and when I'm closer to renewing).

This April I will need to renew.

Wasn't aware they are going down, I thought everything is going up due to the war.

Just recieved a letter from them, saying they have just introduced new fixed tariffs. When they only just released they won't be due to war etc. 

Thank you for the insight, so the best thing to do is wait till April hits and go from there? 

Will you exit and renew also? 

The fixed rates currently (29 March) on offer are pretty eye-watering, but it rather depends on how much you value certainty about your price for the next year or two. I don’t know whether the rates you have been offered include the reduction due on 1 April or not, but that should be clear from the letter you got. If they don’t, you should be able to deduct 3.34 p/kWh from the unit rate for electricity and 0.31 p/kWh from the rate for gas.

When I looked just now, the one-year and two-year rates were almost exactly the same; the only difference was in the standing charge for electricity, 0.02 p/day more for the two-year fix - that’s less than 7½ p a year! - and, of course, the higher exit fees (1-year £50, 2-year £95 for each fuel), so any deal you found during the fixed term would have to be quite a bit cheaper for it to be worth switching. 

The Simpler Energy quote you may have received may be the one for April-June, but it’s widely expected to be a lot higher after that because of the global increase in energy prices (oil started trading this morning (30 March) at the same dizzy heights as it has the last two Mondays, over $116/bbl). What the situation will be after 1 October this year is anybody’s guess.  

Remember that the 01-01-2026 Standard Variable rate you see now will also be going down on 1st April.

In your situation I would wait at least a few days until 1st/2nd/3rd April to let the April changes take place, and then look at the fixed rates being offered compared to the Standard Variable after the changes.

As Firedog says the current fixes on offer do seem high.
(I’m also guessing though that if you did take one today it would go down on 1st April like all other current fixed rates will do).

I had noticed this week that OVO put a new set of fixed rates out on 26th March, and then changed them to a new slightly higher set on 27th March.
It just shows how fluid things are at the moment when the fixed rates on offer change daily like that.

Yea the current rates are way hight than the one I am on

So its best to wait?

Reposting: “… it rather depends on how much you value certainty about your price for the next year or two.” No-one knows what will happen from 1 July - even British Gas have stopped guessing. With our glass half empty, we just assume that variable tariff prices will increase dramatically.

You guys seen the new fixed plans they have just released? Its not amazing but better…

Would you recommend getting on one of them now?