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, Feb 3, 16:01:45