Energy fixed rate - good or bad?

M

Matt

Well-known member
Back in the spring we were told not to renew fixed rates - is that still the best option?
 
Its a gamble imo. the advice is generally to not fix unless you can get a set rate above what the current expected rates are going to be, but this assumes prices will start to fall soon. I had optimism earlier in the year but thats faded now as estimates became in the 2000s, then 3000s, then 4000s then sky reporting 5000s yesterday. if you do fix, maybe try one with no exit fees. check what your supplier has to offer. Most are with existing customers

whatever you do, dont sign up for utility warehouse.
 
The risk of the fix is in how the potential help from the government is structured, if any help does come of course.

If they continue down the existing model of giving everyone a discount of £x then a fix might be better. If help comes in the form of fixing the price cap below the estimates then being locked into a fix that is significantly higher than the price cap would be bad.
 

The Energy Bills Support Scheme (EBSS)​

The EBSS is part of the government’s wider support to help households with the cost of living. It’s open to all domestic households who use electricity.​

How much will I get?​

Every household will get £400, paid over six months starting from October 2022. So you’ll get the following each month:​
Month​
Amount​
October 2022​
£66​
November 2022​
£66​
December 2022​
£67​
January 2023​
£67​
February 2023​
£67​
March 2023​
£67​
If your electricity bills are less than £66/£67 a month, you’ll still get the same amount. You can carry on using the discount to pay for your electricity after March 2023 (until all the £400 is used up).​

How do I apply?​

You don’t need to do anything – every household will automatically get the discount. You don’t need to repay the discount and it won’t affect your credit rating in any way.​

How do I receive the discount?​

For Direct Debit customers, we’ll send the discount straight to your bank each month – like a refund – once your Direct Debit has gone through.
For example:
If your Direct Debit is £100 a month, you’d pay that as normal. Then a few days later, £67 will be paid in to your bank account. If your Direct Debit is less than £67 a month, say £50 for example, £50 will be refunded to your bank account and the remaining £17 will be applied as credit to your energy account.​
 
I fully expect the government to double the £400, otherwise there may be some serious public disorder coming. I was strangely lucky as last Feb when my energy provider went bust, I was transferred to EDF and they kept the tariff the same as I had been on, so was paying £65 a month for 6 months. Then last August they offered me a fix at a set tariff which made my DD £105 for two years so, if the government do as I expect, EDF, on behalf of HMS will be paying me to use gas and electricity and leaving me an added £170. Even if they don’t raise the amount they are giving to everyone, my bills will be about £38 a month. Mind next August, I will be going into the woods to chop firewood.
 
You must log in or register to reply here.
Back
Top