2015 or 2017 Energy Fix?

-Mike-

-Mike-

-Mike-

Soldato
Joined
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Posts
10,165
Location
Minehead
Hey all,

Just wondering for those of you who have fixed your energy prices how far have you fixed them?


Doing my own calculations our yearly tariff currently costs £1007 a year, a 2015 fix brings it down to £969 and fixing it until 2017 makes it £1081.

I'm leaning towards the 2017 due to no exit fee, but am concerned I may be making a mistake fixing it that far!

Help? :)
 
To be fair, energy prices will not go down and will continue to rise whether we like it or not. If you are only going to be paying an extra £74 per year or £6.16 per month on energy then I would certainly save the % increase that you will be paying will be a lot lower than the increase on energy prices over the next 4 years. Either way you will end up paying £1081 or more when your fixed rate ends in 2015.

The whole fixed rate thing is just our way of accepting that energy prices are going to go up anyway, but paying for it early. By consumers accepting to take the fixed rate at a higher price, the companies can almost certainly increase the today's rates to the fixed rates at the end of the 2017 term without us complaining.
 
Imo, utility prices are too closely controlled by the utility companies for fixing prices to make sense. The rate is higher for a reason, I reckon they have a very good idea of what the price will be in a few years time and so are bringing in that income early. They're suckering you in for several years too.

Fixed rates make sense to me on items where the price is based on something in a free (or closer to free) market where the price can fluctuate massively - such as mortgages based on interest rates, or FX options/futures based on FX rates.

Another thing to think about is will you be at the same house in 2017? Some charge a leaving fee if you pull out early which you might as well have added onto the yearly cost.
 
If you think that you would be wrong, saved so much going fixed. And not looking forward to march, where my prices will go up several pence a kwh for electricity and about 1p for gas. Which is a lot of money.
 
I was only able to fix mine till 2015, i'll be looking for alternative energy sources and insulating as much as i can before the fixed is up..
 
what happens at 2017? you will have to find another fix that will be higher than the fix found at the end of 2015

so to me it doesnt really matter
 
You have to hedge your bets on it.

You have to figure out if the total savings until 2017 (bearing in mind the initial extra cost compared to 2015 plan) are going to be more than fixing till 2015 and then getting another deal.
 
I recently fixed until 2015 and am starting to wonder if it's a good idea. Yesterday's main article in the Sunday Telegraph was all about how the green levies will be removed from energy bills and funded from general taxation, so there is a chance that bills may come down in future if those plans come to fruition. Given the greed of the energy companies and the sloth of government though I reckon I've done the right thing.
 
I'm fixed until 2014, the 2017 fixes look tempting, but I just don't trust them enough to fix that far ahead.
 
I went with nPower on a tariff fixed to Dec 2017. However, although the price is fixed , the contract has no minimum term, so o can leave them whenever. Thus the tariff would be better called capped. With my usage and the generous £50 cashback I secured, I am actually now paying less than I was going to be with ebico (who were the cheapest for my usage before the latest round of raping). Glad I got in there quickly.
 
yep, we fixed with EDF till 2017, will save a small amount next year and I think a lot more in the years after that as undoubtebly prices will continue to rise
 
I recently had the choice of fixing for 1,2, or 3 years. The cost of the three year plan meant that energy prices would have to increase 20% year on year before I made a saving on. The 1 year plan. Even at this recent time of rising every year they have not consistently jumped 20% per year. I went with the 1 year and will work out the best fixed next time around.
 
-Mike- said:
Doing my own calculations our yearly tariff currently costs £1007 a year, a 2015 fix brings it down to £969 and fixing it until 2017 makes it £1081.
Click to expand...

I'd be tempted to go with whatever the cheapest deal is now.

Assuming that fixing to 2015 is about the cheapest price you can get now, then I'd go with that. Fixing to 2017, by your own calculations, will cost you £112 each year - equivalent to an 11.6% price hike!

Fixing for several years does give you some protection, but you'll still need to find a new deal then. And that new deal will be based on any price rises that have occurred during your fixed term.
 
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