Renewal dilemma discussion - What's the best option (fixed or variable) in the current energy market?

@Blastoise186 I can assure you, my 3yr fixed rate offer tariff information label is very clear. £60 exit fee per fuel. 2yr fixed rate offer (astronomically high quote) is £30 exit fee per fuel. 

Here are all my choices @Blastoise186 @Simon1D @nealmurphy @Tim_OVO @Mw2870 and exit fee confirmation. My current 2yr fixed rate deal that is just about to end is:

Current electric deal (05/12/19 to 04/12/21):

Unit rate: 15.22p/kWh 

Standing charge: 27.40p/day

I certainly agree - as things stand, the longer you're locked into a fixed price gas deal the better. Mine runs out a week from now ... (so variable rate coming up, for me).

Ooohhh OK, I forgot about that. I’ve never seen OVO offer three year deals before, and the one/two year deals have always been £30 per fuel. I’ll remember that in case anyone else asks. Thanks!

I guess it makes sense though, given the longer commitment both you and OVO are making if you go for it. Trust me, if you were to make that choice today, the three year deal is definitely the better choice of those two.

I've just checked what's available for me on the quote page. Only the 2 year came up with rather high standing charges. £30 per fuel isn't too bad. Might be worth just keeping an eye on these too when factoring in fixed v variable.

I think I'd be inclined to wait another month or so and sit on the capped variable until you fancy playing Deal or No Deal and take what the banker offers you then. Though I've just seen your 3 year quote and it's tempting especially with the lower standing charges. The 2 year deal is nowhere near as good.

@nealmurphy @Simon1D @Blastoise186 it really does feel like Deal or No Deal! The 2yr fixed rate is a no no. That's obvious. The big question right now is do I go for the 3yr deal, wait a couple more weeks and see if it drops again (before my existing deal expires on 04/12/21) or slide on to the variable rate and watch what happens. Am I going to kick myself if the 3yr fixed rate deal suddenly starts going back up again. I've never faced this challenge before!!!!! Yikes 

The black phone on the table that you never noticed rings ominously in the darkness. You answer it, just like that Noel guy used to do on some game show that you used to watch. You wish you hadn’t, when the voice that you hear causes you to cower in fear.

Well, I am also known to some as SkyNet Blastoise, and unlucky for you… I am The Banker and you are in my trap. MUHAHAHAHAHAHA!!! 

The Banker offers you some three year deal and says little else. You try to ask him more, but the phone simply clicks and the line disconnects, never to function again even as you desperately try to call back. I guess The Banker blocks 1471 lookups...

In all honesty, I’d take that three year deal right now if it was offered to me. Not least because it’d almost certainly last me for all the time I’m planning to stay at my current place before I think about moving out and finding somewhere new to live. It’s hard to go wrong with such a sweet deal tbh.

@Blastoise186 🤣🤣 brilliant reply. This exactly sums everything up right now. I'm trapped between playing it safe and locking-in to the current offer (valid for 7 days) or waiting a bit longer and taking a risk. Will it go up or down! If ever I needed some insider trading expert energy price advisor, it's right now! Ohhhhh the pressure 😵‍💫😵‍💫😬

I too have fixed contract which ends early in December.

As I’m aware that others will be viewing this topic in coming weeks and months, I think I should put another option on the table.

At some point soon OVO will be offering a Time Of Use tariff. This will provide variable pricing at half-hour  intervals during the day, and requires a SMETS2  Smart Meter to achieve this.

A ToU tariff could be cheaper for those who can reschedule their electricity use to avoid times of peak-demand. Typically such customers will have one or more types of energy storage in the home.

The delays in OVO offering this tariff are technical rather than for marketing reasons. @Simon1D and I have discussed this recently on the topic Missing Smart Meter Data. Octopus already have a ToU tariff called Agile.

I looked at Agile recently. The problem is that you really need to “work” it for it to be really worth-while. This means some changes to the way your familiy do things. For us, we decided early-on that it wouldn’t really work. Of course, you also need a smart meter which we don’t yet have.

We are on a 1 year “member special” deal until March. I’m no expert in energy prices but the capped variable deal seems pretty good for eletricity. I guess the main thing is whether you need to stabilise your outgoings or could live with some variability? Also, I thought the recent government announcements were in part about focus now on electricity supply rather than gas? Does that mean that electricity is set to come down in price still further?