NBTTT: energy bills, a word of caution

Anyone that has a fixed term deal that is running out, be extremely careful about signing up to a new fix just now.

As it stands, when your fix runs out you'll get bumped onto a default tariff, which must sit below the CURRENT wholesale cap set by Ofgem (i.e. capped at the old level, not the new level announced today - the increase doesn't kick in until April).

Based on a search I just did of the fixed deals currently being offered in the market, the default cap is (for now) by far and away the best value you're going to get anywhere.

This might well change when the GIANT increase announced goes through in April. But if you wait a bit to sign up to something new, you can suck up a couple of months of the old world of tariffs, before you have to move into the new, post gas-price-shock prices.

My deal runs out in a week, and my supplier has been pestering me with requests to fix again, but I'm just going to let it run out and wait. The best fix I can see is going to double my energy bill, whereas the default cap is not so different to what I'm paying now.

I'll check again towards the end of March, to see if fixes look good vs the tariff cap then. Hopefully forward prices will then be coming down as we head into the spring, and they'll be some better deals than the cap.

None of this is hard and fast advice - usually I tell people switching is definitely good - but do be careful if you're getting pestered to fix again right now. It might end up costing you a tonne.

Posted By: Under soil heating on February 3rd 2022 at 16:01:45

Message Thread

NBTTT: energy bills, a word of caution (General Chat) - Under soil heating, Feb 3, 16:01:45
- Yes from what I can gather Martin Lewis has been .. (General Chat) - loz, Feb 3, 16:04:14
  - Most recently he has said go with a fix if you can get it for 40% over your current fix (General Chat) - watfordcanary, Feb 3, 16:18:44
    - Mine finished Dec 31st (General Chat) - BungysPie, Feb 3, 16:46:31
      - They will probably take a day or two to work out new tariffs (General Chat) - watfordcanary, Feb 3, 21:13:37
    - My offer over 100% more (n/m) (General Chat) - SCC 28, Feb 3, 16:25:20
      - Mine too (n/m) (General Chat) - helvegtheowl, Feb 3, 16:31:53
        
        Factoring in another rise in the Autumn (or possibly earlier if they switch to 3 month re (General Chat) - watfordcanary, Feb 3, 21:17:36
        
        Yeah the current fix being offered to me works out cheaper (General Chat) - SCC 28, Feb 3, 21:33:37
  - What are the current default tariff unit prices? (General Chat) - SCC 28, Feb 3, 16:09:45
    - I had to do a few calcs to work them out (General Chat) - Under soil heating, Feb 3, 16:48:38
      - Is that before the rise in the price cap? (General Chat) - SCC 28, Feb 3, 16:53:19
        
        Must be before as this is what he said earlier (General Chat) - SCC 28, Feb 3, 16:56:31
        
        Yeah, these are the old rates. Will be gone from April. (General Chat) - Under soil heating, Feb 3, 16:59:03
        
        Looks like I should just go on the cap come May then (n/m) (General Chat) - SCC 28, Feb 3, 17:05:29
        
        Blimey he’s still waiting to hear (General Chat) - SCC 28, Feb 3, 17:13:29
        
        Although it has been suggested it’s 28p elec and 7p gas (General Chat) - SCC 28, Feb 3, 17:19:31
        
        I've worked them out, by copying my formulae into the new Ofgem book (General Chat) - Under soil heating, Feb 3, 17:25:21
        
        Well that’s more than my current fix offer then (General Chat) - SCC 28, Feb 3, 17:35:25
    - Meant to be to USH (n/m) (General Chat) - SCC 28, Feb 3, 16:11:52

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