Not again!

[ProfJohnL]

I haven't done a detailed analysis, but I have always believed that fixed rate deals rarely actually cost you less in the long run (unless you jump to a different provider).

As someone has expressed you may get what seems like a good deal initially, but when it expires and its time to renew, the new charge is disproportionately higher, So the savings you think you made in the first round, you end up paying back in the second deal, and as most of these deals are based on regular fixed monthly payment, so the companies estimate your fuel usage, generally in their favour, or despite having meter readings, they don't use them to revaluate your actual usage, and you can end up with a surprise excess demand at the end of the period.

I can see how some people like to be able to budget with a fixed monthly payment. but personally I prefer to pay for what I have actually used quarterly - but about a two years ago my electricity company was sold to another large supplier and they now bill me monthly, and despite having meter readers call round 2 or 3 times a year, virtually every bill is "estimated" rather than using proper readings.

 

[ProfJohnL]

With the present volatility of the cost of energy and the number of energy sellers who have got their fingers or worse burned, Its ultimately very difficult to predict how much you will end up being charged for the energy you actually use.

Its of course also complicated by the fact that there is a significant variability in the amount of energy you will need, as that is affected by weather and many other factors. With the pandemic more people stayed at home which probably increased their home heating usage, and people have tended to buy more gadgets becasue they are at home increasing electrical usage.

All this is compounding the situation for many, so yes there will be bigger bills, because you have used more, and that will be additionally compounded by the increases in the cost per unit.

 

[ProfJohnL]

Exactly as Otherclive pointed out, simply looking at a head line profit is meaningless unless you know the turnover.

 

[ProfJohnL]

THe simplest and most effective way to cut energy bills is to use less! or a pair of scissors