This May Be Daft But ...

[CW1]

... if I fix my electric bill now (with a view to building up a pot), do I start paying the nearly 3x price per kWh now too ?

[barry1010]

It depends what you fix it at. It could be higher than the predicted rise so you lose out, or if it's lower then you won't pay the higher capped rate.
Fixing doesn't build a pot as such - it fixes the price you pay for the length of the contract and it designed to spread the cost in equal monthly payments so you build up credit during the summer when you use less to cover the cost of the higher winter bills.

[Hopkirk]

Yes, you pay the increased price immediately.

[CW1]

According to the Moneysavingexpert calculator it's too expensive at 122% more than what I'm paying now, & obviously I'm reluctant to start paying the higher prices for electric before I actually have to. Need to give m-o-r-e thought ... thanks.

[barry1010]

I'm holding back from fixing, too. Things look bleak at the moment but things can change.

[Hopkirk]

If you want to build a pot, increase your direct debit now.

[bhg481]

If you want to build up a pot just ask them to increase your direct debit but stay on the same tariff. There's no reason for them to refuse you as , in effect, it's an interest-free loan you're giving them. A more efficient way for you to build up a pot is to start a regular savings account with a bank or building society and pay into that monthly. When you finally have to go onto a more expensive tariff you can close the regular savings account and use the money in it to help you pay the new tariff.

[barry1010]

My supplier pays higher interest on credit balances than any savings account so I keep a big surplus on my account

[youngmafbog]

//in effect, it's an interest-free loan you're giving them//

Not necessarily some pay interest.

[CW1]

That's interesting barry1010. Came to my attention very recently I don't think my supplier even gives a discount for paying by dd, I thought that was standard. As happy as I've been with them, may have to look at switching sometime not soon, when (!!) things get back to some sort of normality. Meantime, I did pay the debit balance before the next dd was paid so £0 balance, hoping it would drop the fixed rate. I'm back down from my cloud now *sigh*

[bednobs]

my energy company has offered me a fixed rate, which would be 2.5x what im paying now. However, when it comes to october, who knows? ill probably be kicking myself or not fixing

[bednobs]

ps are you an average type family? If so the annual bill is expected to be £3500 (C£300 pm)
if your fix is less than that, go for it!

[bednobs]

a year ago i was paying £90pm
today i am paying £200 pm
the fix they are offering me (before the price cap rise announced next week) is £500 pm
eeek

[cashier]

Never heard of a supplier paying interest on credit before barry. Who are you with?

[barry1010]

Cashier, I'm with Ovo and get 3% interest

[ladybirder]

https://www.lovemoney.com/news/5052/earn-interest-from-your-energy-supplier

[cashier]

Thanks barry. Sorry for the delay someone called round.

[CW1]

Just me & the cat, bednobs LOL And single fuel unfortunately, which doesn't help, & a fixed income which won't be going up in the near future.