My Current fix expires 31/1.
Current DD is £69 with British Gas.
They’ve offered a 2 year fix at £112 or Standard Variable at £86.
SUMS
Electric Annual usage 3660
FIX
34.28/day £125
24.3/unit £889.38
TOTAL £1014.38
VARIABLE
23.77/day £86.76
20.32/unit £743.71
TOTAL £830.47
Gas Annual Usage 3060
FIX
33.42/day £121.98
7.47/unit £228.58
TOTAL £350.56
VARIABLE
26.12/day £95.33
3.99/unit £122.09
TOTAL £217.42
Fix 1014.38 + 350.56 = £1364.94
Variable 830.47 + 217.42 = £1047.89
I assume with the 50% rule this Variable will increase to £129 in April?
What do I do?
Current DD is £69 with British Gas.
They’ve offered a 2 year fix at £112 or Standard Variable at £86.
SUMS
Electric Annual usage 3660
FIX
34.28/day £125
24.3/unit £889.38
TOTAL £1014.38
VARIABLE
23.77/day £86.76
20.32/unit £743.71
TOTAL £830.47
Gas Annual Usage 3060
FIX
33.42/day £121.98
7.47/unit £228.58
TOTAL £350.56
VARIABLE
26.12/day £95.33
3.99/unit £122.09
TOTAL £217.42
Fix 1014.38 + 350.56 = £1364.94
Variable 830.47 + 217.42 = £1047.89
I assume with the 50% rule this Variable will increase to £129 in April?
What do I do?
40 Comments
sorted byThis is mine.
Electricity unit rate: 19.10p per kWh
Daily standing charge: 24.02p per day
Gas unit rate: 3.884p per kWh
Daily standing charge: 26.12p per day
moneysavingexpert.com/new…or/
Remember that the '50% rule' is just a prediction. No one knows for sure what it will rise by, the article above says predictions are floating around between 46-55%.
Also as a few people above have mentioned - double-check the unit rates they're offering. There's a big motivation for companies to get people off the variable rate and onto fixes, so I wouldn't put it past them doing anything they can to make the fix look more attractive, like decreasing your DD amount for the fix to make it look cheaper.
If you go based on the DD amount, it's 30% above the current price cap for the fix - which sounds like a decent deal, especially when you consider the prediction of a 50% rise now and possibly further rises in October. If the unit rate is only 30% above the price cap, I'd seriously consider it.
Done some sums on the tariffs offered…
Electric Annual usage 3660
FIX
34.28/day 125
24.3/unit 889.38
TOTAL 1014.38
VARIABLE
23.77/day 86.76
20.32/unit 743.71
TOTAL 830.47
Gas Annual Usage 3060
FIX
33.42/day 121.98
7.47/unit 228.58
TOTAL 350.56
VARIABLE
26.12/day 95.33
3.99/unit 122.09
TOTAL 217.42
Fix 1014.38 + 350.56 =1364.94
Variable 830.47 + 217.42 = 1047.89
Done some sums below
I’ve put the tariffs and some sums in a comment for all to see (edited)
If this is the case then maybe fix for the next few months until we see more clarity on the uplift, if its going to be lower then drop out of the fix, if it is going to be higher/the same then stay. the fact there is no exit fee then it makes the decision easier (you may be paying a little more for a few months but you also may save over the next 20 months).
I'm dreading my fix ending in March. Time to scrap net zero initiatives for now (30% of every bill)
My current rates
Electricity 15.1p per kwh
Gas 2.34p per kwh (edited)
We only have gas for heating and water. All electric appliances in the kitchen.
It’s hard to work out what’s best…
But isn’t £112 better than potentially £130?
So will the variable NOT increase by 50%
The fix is free to leave at any time with no exit fees (edited)
As it's not fixed I guess you have nothing to lose - so i'd probably go with the fixed.
Yes the prices are estimated to rise in a few months but it still seems the best thing to do is remain is not to switch. Also as @Van1973 mentioned compare on the unit and standing prices not the DD amount. Stay on top of your finances and give a meter read every month and ask your provider to generate a bill if not done already
Very jealous of that electricity rate. Gas looks very high.
It will be interesting to see if the cap percentage rise on electricity and gas will be different.
Jealous of fix or standard variable.
We only use gas for heating and water. Everything’s electric in kitchen. (edited)
The fix rate.
If they increase the variable rate on electricity by 50%, I'd be on around 31p / Kwh vs your fix of 24.3p / Kwh. If in October the cap increases again, your electricity would be far lower than the price cap, but your gas higher.
Difficult to call isn’t it?
Gas is less than 4p a Kwh I wouldn't exactly call that high unless I'm maybe missing something.
Gas in the fix is 7.47 a unit
You're looking at the variable rate offered which is restricted by the current cap, but subject to increases in April and October.
I'm referring to the fixed rate that OP was offered and is considering taking, which is almost double that.
33.42/day 121.98
7.47/unit 228.58
But with the price cap likely to increase 50% then 20% …
3.99 x 1.5 = 6
6 x 1.2 = 7.2
The fix would be close to the cap
If only we knew for sure what the increase will be, this would all be much easier.
I'd be tempted to take it, gives some certainty at a rate that isn't insane.
I'm stuck on a variable with Bulb, no fixes available anywhere near this sadly.
Seeing as there are no exit fees, go with the fix and keep your options open until the next price cap is announced.
You'll be paying a little bit more for the next couple of months but that could pale into insignificance compared to how much the fix could save you over the next 2 years if the cap keeps increasing (remember also that Ofgem are considering adjusting it more frequently than the current 6 months).
This is the offer
Electric 21.321 per k
Gas 4.266 per k
I'm expecting that to go up at some point soon (edited)
The fixed electric quote seems worth it but the Gas fixed quote probably not.
Whenever I’ve seen a decent gas and/or electric rate the standing charge is usually where some companies can get you.
Nobody can answer you as gas wholesale prices could plummet later this year meaning you may be substantially overpaying variable rates for the duration of the 2 year fix
Your fixed rates seem high to me but I'm on a fix which ends soon so expect mine to rise substantially too
Your new fix:-
24.43p kwh electricity. I pay 15.1p so you pay 65% more
7.47p unit gas. I pay 2.41p so you pay 210% more (edited)
Electric was 14.022 and gas was 2.405 before tariff ended on 31/1/22
I have your pain to come but will be going for variable rate as can see consumer prices coming down later this year due to continuing wholesale prices falling . Its fallen 60% over the last 6 weeks and down around a quarter over the last 3 month average
That was my issue…
The new price cap average prices are high…
More importantly, we don’t have gas in our kitchen…
And don’t forget a predicted increase of 20% in October. This increase was only meant to be 49%, it hit 54% (edited)
I wouldn't factor in gas usage in a kitchen as its miniscule compared to heating
At least you have the assurance of no further rises for 2 years but I like a punt and can see variable rates returning to near last years rates by the end of this year.