Reply With QuoteWhat’s the early termination penalty like?Originally Posted by Onelasttime
Is anyone gambling on taking up a fixed rate deal?
I've just moved into a new home, which annoyingly has two separate suppliers - British Gas, who I hate with a passion, and EDF, not my first choice but at least they've sent a letter quickly to say 'Welcome'.
I'd really like to have one supplier for both leccy and gas but EDF seem to be only taking new customers on a fixed rate deal.
I need to contact BG to see what they say, but on past experience I want nothing to do with them. However, at the moment, it seems I'm stuck.
I did try to bring Shell (forced supplier after Green Energy went bust) with me from the old gaff, but its website cunningly made me think I was transferring and then just cancelled the old account instead.
So what's everyone doing? The fixed rate offered by EDF is higher than the new April capped rate, but will it be less than the forecasted October rise?
What’s the early termination penalty like?
Advice everywhere including from Martin Lewis is to stick with the variable.
I moved last month and had exactly the same experience. Tried to move my account from my previous address but they cancelled it instead then told me I couldn't have my old rate or the variable. It was take a ridiculous fixed deal or beat it. So I'm just sitting on the variable rate with the supplier at the new house.
My hope is that world war 3 diffuses soon and prices drop as demand drops with the warmer weather calming the October rise. I think suppliers are just pushing their luck with fixed deals way over the proposed rise in an attempt to catch a few mugs and claw back some of the £1000pa each customer on the variable rate is currently costing them.
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There's already a thread on energy prices, you must have missed it.
I recently look up a fixed deal with my current supplier (Octopus), it has no early termination fees and it's marginally cheaper than the April price cap - so "win-win".
He doesn’t quite say that. He says stick with the variable unless you can find a fixed deal that is less than somewhere between 144% and 159% of what you are paying now (the range being due to uncertainty of Octobers cap).
Best to do a spreadsheet of your usage and see how the figures add up when you compare the deals.
is the April rate introduced at the beginning or end of the month? we are supposed to complete in early/mid April and want to do whatever i can to minimise the increases and not get stuck with a bum deal.
I've done the figures on some of the fixed deals and to be honest, even on the exclusive fixed discounts that aren't available to all, we aren't talking break-the-bank differences. You end up paying more immediately in the hope that over the October-March period, the price cap rises and you make your money back and a bit more on the fixed.
Get a big estimated reading in before April...
Consensus seems to be stick then.
No favourable deals from a brand new supplier and I have no idea what our usage will be because it's a totally different house and boiler(s) set up.
And I had seen that other thread - I started the monster - but was asking a more specific question here.
Thanks for the advice all
Brilliant plan!!
My last fixed deal ended in November. Rather than sign up to another deal which was way over the cap, I decided to over-winter on the variable rate. The advice from my energy switching group was to do this and the latest advice is to stay put still. There may be new deals in May but at the moment there are no terrific tariffs out there. We can only hope that the wholesale price of gas gets driven down again before next Winter. The one thing this situation has prompted me to do is to schedule a new boiler in Spring. The current one is 29 and despite serving us really well it won't be too efficient. If things don't change, at least we'll be using less gas.
i’m wondering if we should take a reading when we get the keys and wait for a letter addressed to the ‘the owner’ ? i presume you just get put on to the standard tariff of the previous supplier? then wait a few weeks or a month for prices to settle/new price cap and see what contracts are available?
I have had mine variable for the last 4 years in current house and 12 in previous, mainly as I am always not around to give meter readings and in the country. It has not been that bad to cause me to go look for a fixed deal. I have no intentions of locking my self in currently; have made home improvements i.e new windows, roof etc. Next is the boiler for a more powerful one/ efficient one.
I locked in. Scottish Power had a deal with a £60 exit fee that took my combined monthly bill from £130 to £220 which stings, but the £130 tariff was from April 2021 so the increase was always going to be significant. Locking in ‘only’ a £90 increase seemed balanced and gives me predictability, and it’s not too expensive to buy myself out of the deal if I made a mistake.
I'm on the standard tariff so expecting my KW to increase from around 0.19p to 0.30p. I've been toying with a fixed tariff which has a day unit rate of 36p but a night rate of 22p. We run 2 EVs so this fixed deal is pretty tempting for night charging.
I think that’s wise, looking at gas wholesale price predictions on statista, you don’t see any return to normal until Q2 2023, with prices averaging still above April’s cap. Add into that the uncertainty of Ukraine and I think the risk is there for a very bad winter 2022 price rise.
Just called Scottish Power and they confirmed I'm currently paying 17.6p on their standard tariff currently so it wouldn't make sense me fixing at the moment . She first said I was paying 10.8p day and 2.3p night, I said I'm positive that's not correct. She then double checked and said, oh sorry, that was this time last year......
Can you get 17.6p with them if you stick? If so I’d suggest you jump at it.
That's the rate I'm getting currently so that'll go up end of March when the cap is adjusted. If it goes up by 52% to 26.8 after the cap is lifted it's probably worth just staying on that for the moment.
EDF have just offered me this. 2 year fix with £100 per fuel to exit. Based on my current consumption and being on the SVR it is a 10% home from the current level.
Thoughts?
Can't comment on the gas but I think the electricity kWh rate is pretty good. The standing charge per day is what grinds my gears; that's almost £260 per year before you've used anything.EDF have just offered me this. 2 year fix with £100 per fuel to exit. Based on my current consumption and being on the SVR it is a 10% home from the current level.
Thoughts?
If they didn't have standing charge though, the alternative would be to increase the unit rates. There is a cost to the company even if you draw no electricity.
The thing that annoys me is that the fixed cost seems badly managed - SMART meters that need changing/upgrading because the ones they rushed out aren't compatible, charging consumers who played safe with the big energy companies for those that benefited from cheap deals that went bust...etc.
Each to their own, but that fixed price deal above looks horrendous. Very long fix period with extortionate exit fees and figures that look like they will be above Aprils cap price.
I wholeheartedly agree Christian. I too was looking into this as my fixed deal with Shell Energy came to an end last week.
My research showed the overwhelming consensus was that there are no good fixed price deals to be had currently.
The expert opinions I have come across have all advised that the best course of action is to 'do nothing' and stick to the variable rate tariff we are inevitably reverted back to in the absence of an alternative.
Whilst doing nothing is the easiest option for me, it doesn't help when I see how much my energy costs have actually gone up by.
The most troubling thing is there is no end in sight, with the whole uncertainty surrounding the Russia & Ukraine issue things may get even worse.
Bit the bullet and fixed on the Scottish Power's "Exclusive Fixed June 2023 B1" existing customer deal. £60 early termination fee.
Elec Standing Charge: 21.64p Unit rate: 28.352p
Gas Standing Charge: 21.37p Unit rate: 7.177p
Can't see this being much over the April Variable Rate (if I use average household figures, this gives £1840 versus April's cap of £1971) so whilst not much different for April-October, I figure it protects me against further potential rises in October. Was actually quite surprised SP was offering those rates considering nearly everyone expects a further rise in October even ignoring other variables such as Ukraine situation.
Looking at those figures, makes the EDF fix posted above seem dreadful.
my new variable charges , no exit fees
Your tariffs
Electricity
Flexible Octopus October 2021 v2
Unit rate20.67p per kWh Standing charge24.01p per day
Gas
Flexible Octopus October 2021 v2
Unit rate4.01p per kWh Standing charge26.11p per day
(All rates inc. VAT)
Bit the bullet and went variable can only see it getting a lot worse in the upcoming Months ,thank goodness for the log burner.
Last edited by mart broad; 23rd February 2022 at 16:44.
I FEEL LIKE I'M DIAGONALLY PARKED IN A PARALLEL UNIVERSE
Are they subject to the cap increase of +52% at the end of March?
Mine goes up £405 a year. Not horrendous in the grand scheme of things. Up from £1100 - ish to £1500-ish.
Yes, those look like the current cap (until the end of this month) rates. I have found it difficult finding the actual rates for each supplier from April onwards, they are probably still working them out, but MSE suggests the following will be rough SVR for most suppliers monthly direct debit with a single rate meter...
Elec: Standing charge 45p Unit rate: 28p
Gas: Standing charge 27p Unit rate: 7p
Last edited by Christian; 23rd February 2022 at 16:56.
Just had an email from Shell. These are my rates from April
Your electricity rates will change from 20.680p to 28.455p per kWh and your standing charge per day will change from 24.11p to 43.39p.
Your gas rates will change from 4.169p to 7.479p per kWh and your standing charge per day will change from 26.11p to 27.22p.
They reckon an extra £875 pa taking total to £2436
Last edited by craig1912; 23rd February 2022 at 20:35.
Are you paying for the entire street?!?
This is per year
Yep from April….
Huh? Seems a pretty normal amount?
Low if anything.
Right now i would take £125.00 pm fixed
I FEEL LIKE I'M DIAGONALLY PARKED IN A PARALLEL UNIVERSE
I'm guessing it is a modern apartment.
https://www.bbc.co.uk/news/business-60506940
Dire news but predictable. Don’t think any of the previous thoughts about gas prices had seriously priced in a Ukraine conflict.
Last edited by Christian; 24th February 2022 at 22:15.
Prepare for a sustained media campaign over the next few months, driven by 'analyst reports' that will steadily terrify people into committing to massively over-hiked fixed deals.
While the energy companies and the politicians with noses in the trough laugh heartily as they rake in the windfall of the working man's misery.
Goodnight Vienna!
Last edited by Onelasttime; 24th February 2022 at 22:52.
Suddenly everyone who wanted to work from home will be thinking about going back in and the businesses will be thinking about shutting offices. Dont need the heating and the kettles if the staff are at home
Given my weekly commute was costing me £150 I am pretty comfortable in staying working remotely. If I end up in a negative position here then we are completely screwed as a nation.
I really feel for those that are really going to have to decide between heating and eating. Such an awful position to be in.
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