I have been a dual fuel customer with Ovo for over 7 years and have always ensured I get the best fixed rate deals possible. My dual fuel fixed rate deals expire on different dates (long story). My electric fixed rate deal expires 04/12/21 and my gas fixed rate deal expires in June 2022. For this reason, I am only asking about my electric as this deal is about to end.
Taking into account that fellow forum members can only provide non-binding guidance and thoughts, I wondered what everyone's views are about the following...... Based on the information below, if you were me, would you lock-in to a new 3 year fixed electric deal commencing on 05/12/21 (note: the rate cost I am being offered has fallen twice in the last 4 weeks!!). Here is my situation:
Current electric deal (05/12/19 to 04/12/21):
Unit rate: 15.22p/kWh
Standing charge: 27.40p/day
New 3yr electric deal (05/12/21 to 04/12/24):
Unit rate: 25.41p/kWh
Standing charge: 25.64p/day
Price capped variable rate:
Unit rate: 20.31p/kWh
Standing charge: 23.76p/day
Whilst I can see the variable rate is the cheapest option, the question is whether or not I would be better locking myself into the 3 year fixed rate now to protect myself from further increases? Should I slide on to the variable rate and hope the costs come down and not go up? Should I wait a couple more weeks and see if the cost of the fixed rate offer will drop even further (it has come down twice in 4 weeks), or is it likely to rise meaning I will miss out? PS: 2 year fixed rate offer is ridiculously high!
What is everyone's thoughts and views about this? What would you be tempted to do? Obviously I know any views are non-binding so please don't worry. Just looking for your input.
Thanks everyone and take care