Advice on the best renewal option for me during these time of high energy prices - which to choose?

I've just had the same dilemma. Obviously I can't advise you on the best option for you but I read Martin Lewis's articles, which helped me make a decision.

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

If only my energy fixed rate deals were as low,

The cheapest fixed deal ovo are offering me today is an eye watering 107% increase on top of the minimum recommended payment from my standard variable rate that I’m on currently on.

if I were to add my 2nd account costs, ovo’s fixed rate deals sit either side of the £900 a month mark.

Tom…

Don't forget to compare price per kWh and standing charge to get an accurate comparison, rather than monthly cost.

Hi @ChrisBod the other thing to remember is the price cap is due to go up from October so you only get the currently cheaper price cap for 2 weeks on the variable rate if you don't fix.

Ofgem are due to announce the October price cap around 26th August. 

Also the current plan is for ofgem to update the price cap quarterly so the variable rate will go up again in January in the middle of winter based on current industry predictions and  current gas prices. 

I can't comment on the electricity rates as I can't see them, but the gas rate is pretty much the going rate now. Up until last week you could get gas at a maximum of 11p/kWh for 1yr. This tariff has now gone to max. 16p/kWh, so a fixed rate of around 15p/kWh is possibly worth considering and could well be what the variable cap rate moves to in October.

The low exit fee for 2yr tariff may well be worth giving consideration to for the sake of price certainty.

https://www.standard.co.uk/news/uk/russia-kremlin-graham-ofgem-government-b1014999.html

£3850 price cap for January? (That is based on a typical consumption of 12000kWh gas and 2900kWh electricity) 

That's double the current cap of £1971 if it turns out to be correct. 

Hi there, 

Thanks very much for the advice from you all - it's been really helpful. Picked a deal and just now working on selling a kidney to actually pay it!

Chris 

Hi @ChrisBod do you mind me asking which one you picked in the end? 

Hi jeffus,

I went for a 2 year fixed with a homeserve deal attached to it (it was a loyalty offer). We need to know exactly what is going out each month even if it's more than we'd like! My new monthly combined bill is 133% more than it used to be. 

Chris

My 1 year fixed plan comes to an end in September. I phoned OVO for an estimate if I kept on this plan again. My bill for 2021 was £1400, which looks like what I will pay by this September.  If I choose the fixed plan today, and based on my usual usage, I was quoted that I will be paying £6000 for the next year! Surely this can’t be. I was expecting more like £3000.

I know I can pull out if I want, but don’t feel like clicking into this. Any thoughts would be appreciated.

That's scary, mine is due to renew towards the end of September, like you I am expecting double perhaps slightly more.

I think I would stay on the variable tariff for now and see what happens in the future 🤔 

We’ve been with OVO 7 years on 1 year fixed contracts, and very happy so far. (Except for initial hounding to get Smart Meter which we resisted in no uncertain terms!) Contract renews next month and purely on cost (we are 78 yr old pensioners with some savings) seriously considering allowing OVO to move us to variable in the hope (?) that by mid-2023 energy chaos will have settled and a clearer picture of future rates/plans emerges. If at that point we want to take out a fixed plan (as OVO says we can) would we be quoted sky-high rates to return? We don’t want to move supplier, nor would we relish being ripped off.  I know the choice is ours alone, but would welcome feedback.

Hi @margiejay 

I don't work for OVO, a few of us post if we think we can help. 

It is a difficult time. 

Unfortunately the latest estimates are that the prices will continue to rise and then not really fall much. There is a graph on here. 

https://www.cornwall-insight.com/press/price-cap-forecasts-for-january-rise-to-over-4200-as-wholesale-prices-surge-again-and-ofgem-revises-cap-methodology/

Of course this is just an industry estimate. 

The price cap is going to be updated every 3 months going forward by Ofgem. 

October

January

April

July

So the October rise is just the start and costs are expected to rise steeply in January. The estimates assume prices stay high into 2024.

Of course none of us can predict the future, including what the next Prime Minister will do etc. 

Fixed rates have been gradually increasing every few days sometimes, so there is little to suggest fixed rates will reduce next year at the moment. 

The October price cap will be announced around the 26th August.

Of course the choice of a smart meter is yours alone, we were wary, but for us it has been great. Being able to see where we spend money has enabled us to make large savings in our heating etc. Based on our experience i would recommend a smart meter. The vast majority of smart meters work without any issues, it is easy to get put off. Anyway just saying as you asked for opinions. 

Hi @margiejay 

To specifically answer the question you asked, no you won’t be penalised for going to the variable and then taking a fixed tariff next year. The market will dictate the prices available at any specific time.

You’ll still be able to access any tariff that OVO is offering if you stay with them. There may be some tariffs that give ‘loyalty’ rates to existing customers of suppliers and I believe you usually have to be with the supplier for at least 6 months, generally, to be able to choose these tariffs.

Hi. VERY new to forums and can’t work out how to reply to individuals, let alone what everything means.  Thanks for taking the time to give me your thoughts. Will certainly remember to ask for a loyalty quote as and when necessary.  

Let us know how things go. 

I am sure it will help others in a similar situation think about what to do

thankyou so much for help