Price cap increases- To fix or not to fix?

Thanks, Abby 😊

Thanks @Firedog 😅

Hi, 

can I get your opinions please. What is the best rate to be on now the rates have gone down.  I don’t really understand it all. I’m o variable at the minute. Thank you 

You will get a variety of opinions on the forum

For piece of mind fixing now will lock you into lower rates than your current variable rate. That is because wholesale prices have fallen so energy suppliers can buy energy in advance cheaply at the moment.

Your variable rate is forecast to be lower than it is now if you decide not to switch

https://www.cornwall-insight.com/press/wholesale-price-hikes-and-ofgem-updates-raise-price-cap-forecast/

But nothing is guaranteed obviously.

It is worth shopping around if you decide to fix as you may find better offers elsewhere than OVO.

If you want to stay on a variable tariff then there is an Eon tariff that guarantees to track lower than the price cap for 12 month with no exit fees.

Overall I would say now isn't a bad time to think about fixing. There is nothing to suggest another big fall in wholesale prices.

In my case, OVO is offering a 1 or 2-year Fixed Loyalty plan, which has higher unit rates and standing charges. Unless you anticipate energy prices increasing in the future, there is no incentive to switch, or you can simply consider switching elsewhere for those offering a better deal.

Iinteresting as ovo are offering me lower fixed unit rates.

Are you able to post the comparison from the ovo  renewal page?

That's incredible. The fixed daily  charges for my account are ludicrously high. It reduces the incentive to save. My variable daily rate is 66.55p electric and 30.07p gas. North East England. 

Sometimes l don’t understand how it works but mine was coming to an end. my one starts next week and l think mine is a standard one . It’s is a cheaper one as it all has come down.

That's incredible. The fixed daily  charges for my account are ludicrously high. It reduces the incentive to save. My variable daily rate is 66.55p electric and 30.07p gas. North East England. 

 

Unfortunately the regional pricing of electricity means some areas of the country pay more.

This difference in pricing is potentially going to increase as the industry moves to zonal and nodal prices, where prices may vary by local substation. Be interesting to watch how that feeds into consumer tariff.

In my opinion these saving schemes offered are a gamble, implementing changes as shown below puts you in control of what your energy costs you. I run a 2 bed semi detatched house and my combined consumption throughout this winter, including standing charges and vat is under £100 per month so it can be done.

The only way you can realistically save is to drastically cut down on your consumtion. Not so easy to do if you have a family. I am retired now and live on my own and have done the following:

Throughout the winter indoors, I wear my oodie that keeps me toastie warm

I use a 650w halogen heater instead of putting on the central heating.

I have an electric blanket 200w instead of heating up my bedroom

I strip wash daily and have a long soak in the bath once a week

When I cook, I cook for 8 and freeze 6 (One goes in the fridge and one eaten on the day)

Use the washing machine on cool and full loads only

Dry washing outside even through the winter (I have a canopy that protects the washing from the rain)

Switch over to low energy bulbs and don’t leave lights on.

Doing all of the above I am now using one third of the energy that I used to use, even though the prices have climbed I am actually spending less on energy than before the price hike.

Once you get into the routine it’s not so bad and personally I would rather spend less on energy whilst also helping the environment and have more money to spend on myself.

I hope this helps.