Like everyone, I'm sure, my current charges will shortly appear very cheap indeed following my contract renewal in early January. I'm currently paying circa £100-110pm (probably a reasonably accurate average for the year) for the plan that's about to expire and I've been offered the following choices by OVO (assume I have reasons to stay with them - I can't see massive cost differences between suppliers anyway).
On the face of it I'll be substantially better off not opting for another fixed plan at the moment. Am I missing something, though. albeit that a 1 year plan - the best alternative option, it seems to me - is looking like it's going to work out about 38% more expensive on the current variable rates? Just want to be sure I'm not falling into a trap, or likely to face a massive increase in the charges going forward.
No point having a fixed deal at present due to the prices. Only the variable tariff is capped by the government and is mainly why so many energy companies are now going bust. You just need to be aware that the cap is adjusted every 6 months the next change is 1st April 2022 and will reflect the last 6 months prices so is likely to be a stinging uplift %.
All the advice is to stay on a variable tariff, which is capped at Ofgem rates. The rates will go up again in April after the review, but whether they rise enough to exceed that £242 fixed rate, remains to be seen.
We're hoping to move to a bigger house in January and I'm dreading the heating bills. They've already risen from £110 to £160+ in our little terrace house.
At least it will be getting warmer from April
Just stick with the variable tariff for now as there is no point signing up to the far more expensive 1 year deals at the moment. Then wait to se what will happen when the cap gets reviewed in April.
I decided to forgo a fixed rate last month - the jump from last year was very steep so I decided to go with the variable rate and hope that it wouldn't go higher than the fixed rate over the next 12 months. Time will tell, I guess.
Exactly the same thing we are doing, Tony. The large jump we will experience short term is not going to jump again, or we are in a great deal of pain!
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