I forget when it was now, I think it was late in 2020, but I switched my energy supplier to Green Network Energy, with the aim of saving money compared to the tariff provided by Npower which was due to expire.
All was reasonably good, until early in 2021, Green Network Energy collapsed into administration, along with several other ‘smaller’ energy suppliers. By the will of Ofgem, I was transferred to EDF Energy, who placed ex-GNE customers onto a ‘special’ tariff, which would match the prices we were already paying.
So all was good, however that tariff was only in place for six months, and was due to end in September last year. Even then, noises were being made about the ‘energy cap’ and how prices were set to rise from October, due to ‘cost increases’.
I did try and shop around, but typically the usual ‘comparison sites’ were next to useless, as they “couldn’t find a better deal than I was already on”, or words to that effect. Which was understandable, seeing as how tariff rates were shortly about to increase.
So I decided to stay with EDF, as I didn’t want the hassle of having to change energy provider again. I agreed to a new long-term tariff which saw my gas and electricity unit costs fixed for a three year term. That came into effect in September 2021.
Granted, I did see a unit cost increase at the time, which while I wasn’t happy about, as my direct debit then saw an increase from £42 to £57 a month, it turned out to become a masterstroke.
A lot has been said this year about the spiralling cost of energy, and there have been a lot of foreboding warnings about how Ofgem are increasing the energy price cap again from this October (2022). Granted, it is those who use pre-payment meters or are on standard variable-rate tariffs that are most affected by all this.
And I do have sympathy with those who do find themselves with vastly increased energy bills as a result.
But it would seem to me that those like myself who did ‘gamble’ on agreeing new long-term fixed rate tariffs (for 2 or 3 years) from last year are those who end up being ‘better off’ as a result.
And as I write this, I seem to recall the likes of ‘money-saving expert’ Martin Lewis ‘advising’ people to revert to standard variable-rate tariffs.
Worth noting as well at the time of writing this that no energy supplier is currently offering any such long-term fixed tariff deals due to ‘energy price uncertainty’.
What does this mean for me? It means that I don’t have to worry about any increase in the cost of energy that I use, and I didn’t have to scramble to submit my energy meter readings yesterday.
The downside is that perhaps I am just ‘kicking the can down the road’ and I may get a nasty shock come September 2024 when my tariff term expires.
But who knows what will happen in the next two years, I did hear from someone that energy prices may not start to ‘stabilise’ or decrease until 2024, so maybe I will get lucky (again). You have to live in hope!