Posted 12th Jan 2022
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?
Community Updates
New Comment

40 Comments

sorted by
Avatar
  1. Avatar
    Don't judge any deal on the quoted monthly direct debit amount - compare p/kWH and daily standing charges for both Gas and Electricity. Also know your own annual usage. (edited)
  2. Avatar
    I wouldn't fix at all at the moment.... The prices are as high as they have ever been, maybe better off letting it hit the cap.
    Avatar
    Author
    Glad I fixed
  3. Avatar
    No way would I consider taking a 2 year fixed contract at this point in time. I have a deal that ends the same time as you (with Shell Energy) and just remaining on the standard variable contract for now.
    Avatar
    Author
    Glad I fixed
  4. Avatar
    Author
    Wow… after todays news, glad I fixed!
    Avatar
    Fixed until 31/3/2024. Glad I fixed too.

    This 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
  5. Avatar
    This is a good summary:
    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.
  6. Avatar
    Author
    Hi All

    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

    Pe_te12/01/2022 14:03

    This is a good …This is a good summary:https://www.moneysavingexpert.com/news/2022/01/martin-lewis--the-energy-price-cap-s-now-predicted-to-rise-a-hor/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 below

    Undercover_Shopper12/01/2022 13:48

    As it's not fixed I guess you have nothing to lose - so i'd probably go …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



    Van197312/01/2022 13:41

    Don't judge any deal on the quoted monthly direct debit amount - compare …Don't judge any deal on the quoted monthly direct debit amount - compare p/kWH and daily standing charges for both Gas and Electricity. Also know your own annual usage.


    Undercover_Shopper12/01/2022 13:37

    No way would I consider taking a 2 year fixed contract at this point in …No way would I consider taking a 2 year fixed contract at this point in time. I have a deal that ends the same time as you (with Shell Energy) and just remaining on the standard variable contract for now.


    mds125612/01/2022 13:32

    I wouldn't fix at all at the moment.... The prices are as high as they …I wouldn't fix at all at the moment.... The prices are as high as they have ever been, maybe better off letting it hit the cap.



    I’ve put the tariffs and some sums in a comment for all to see (edited)
  7. Avatar
    InForAPenny202112/01/2022 13:37

    the fix is free to leave at any time with no exit fees


    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).
  8. Avatar
    PaulandPam12/01/2022 14:38

    Gas is less than 4p a Kwh I wouldn't exactly call that high … Gas is less than 4p a Kwh I wouldn't exactly call that high unless I'm maybe missing something.


    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)
  9. Avatar
    Author
    InForAPenny202112/01/2022 14:42

    But with the price cap likely to increase 50% then 20% …3.99 x 1.5 = 66 x 1 …But with the price cap likely to increase 50% then 20% …3.99 x 1.5 = 66 x 1.2 = 7.2The fix would be close to the cap


    .MUFC.12/01/2022 22:29

    Martin Lewis suggests if the price to fix is less than 40% then it may be …Martin Lewis suggests if the price to fix is less than 40% then it may be worthwhile but it's a big gamble.The fixed electric quote seems worth it but the Gas fixed quote probably not.



    We only have gas for heating and water. All electric appliances in the kitchen.

    It’s hard to work out what’s best…
  10. Avatar
    Author
    mds125612/01/2022 13:32

    I wouldn't fix at all at the moment.... The prices are as high as they …I wouldn't fix at all at the moment.... The prices are as high as they have ever been, maybe better off letting it hit the cap.


    But isn’t £112 better than potentially £130?

    Undercover_Shopper12/01/2022 13:37

    No way would I consider taking a 2 year fixed contract at this point in …No way would I consider taking a 2 year fixed contract at this point in time. I have a deal that ends the same time as you (with Shell Energy) and just remaining on the standard variable contract for now.


    So will the variable NOT increase by 50%

    Undercover_Shopper12/01/2022 13:37

    No way would I consider taking a 2 year fixed contract at this point in …No way would I consider taking a 2 year fixed contract at this point in time. I have a deal that ends the same time as you (with Shell Energy) and just remaining on the standard variable contract for now.


    The fix is free to leave at any time with no exit fees (edited)
  11. Avatar
    InForAPenny202112/01/2022 13:37

    The fix is free to leave at any time with no exit fees


    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
  12. Avatar
    InForAPenny202112/01/2022 14:17

    Hi AllDone some sums on the tariffs offered…Electric Annual usage 3 …Hi AllDone some sums on the tariffs offered…Electric Annual usage 3660FIX34.28/day 12524.3/unit 889.38TOTAL 1014.38VARIABLE23.77/day 86.7620.32/unit 743.71TOTAL 830.47Gas Annual Usage 3060FIX33.42/day 121.987.47/unit 228.58TOTAL 350.56VARIABLE26.12/day 95.333.99/unit 122.09TOTAL 217.42Fix 1014.38 + 350.56 =1364.94Variable 830.47 + 217.42 = 1047.89Done some sums belowI’ve put the tariffs and some sums in a comment for all to see


    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.
  13. Avatar
    Author
    Pe_te12/01/2022 14:26

    Very jealous of that electricity rate. Gas looks very high.It will be …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)
  14. Avatar
    InForAPenny202112/01/2022 14:27

    Jealous of fix or standard variable


    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.
  15. Avatar
    Author
    Pe_te12/01/2022 14:30

    The fix rate.If they increase the variable rate on electricity by 50%, I'd …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?
  16. Avatar
    Pe_te12/01/2022 14:26

    Very jealous of that electricity rate. Gas looks very high.


    Gas is less than 4p a Kwh I wouldn't exactly call that high unless I'm maybe missing something.
  17. Avatar
    Author
    PaulandPam12/01/2022 14:38

    Gas is less than 4p a Kwh I wouldn't exactly call that high … 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
  18. Avatar
    PaulandPam12/01/2022 14:38

    Gas is less than 4p a Kwh I wouldn't exactly call that high … Gas is less than 4p a Kwh I wouldn't exactly call that high unless I'm maybe missing something.


    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
  19. Avatar
    Author
    Pe_te12/01/2022 14:40

    You're looking at the variable rate offered which is restricted by the …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 121.987.47/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
  20. Avatar
    InForAPenny202112/01/2022 14:42

    But with the price cap likely to increase 50% then 20% …3.99 x 1.5 = 66 x 1 …But with the price cap likely to increase 50% then 20% …3.99 x 1.5 = 66 x 1.2 = 7.2The 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.
  21. Avatar
    InForAPenny202112/01/2022 14:32

    Difficult to call isn’t it?


    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).
    Avatar
    Author
    Glad I fixed
  22. Avatar
    Author
    mds125612/01/2022 17:42

    If this is the case then maybe fix for the next few months until we see …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).


    Delbert.Grady12/01/2022 18:25

    Seeing as there are no exit fees, go with the fix and keep your options …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).

    46675087-r5Jhr.jpg
    46675087-Gj6SM.jpg
    46675087-yCiO9.jpg

    This is the offer
  23. Avatar
    I'm not on a fixed rate and with a small company

    Electric 21.321 per k
    Gas 4.266 per k

    I'm expecting that to go up at some point soon (edited)
  24. Avatar
    I have this exact dilemma currently with octopus, my fix ends like mid feb, their fix you can leave at no charge tho. I was waiting until the last minute hoping they tell us what the increase to cap would be before deciding to fix or not (edited)
  25. Avatar
    Martin Lewis suggests if the price to fix is less than 40% then it may be worthwhile but it's a big gamble.

    The fixed electric quote seems worth it but the Gas fixed quote probably not.
  26. Avatar
    Just come back across this discussion and saw your comparisons. Had a quick skim on the other messages and didn’t anyone mention anything about standing charge?

    Whenever I’ve seen a decent gas and/or electric rate the standing charge is usually where some companies can get you.
  27. Avatar
    Author
    So, did I do the right thing fixing?
  28. Avatar
    InForAPenny202103/02/2022 19:12

    So, did I do the right thing fixing?


    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)
  29. Avatar
    Author
    deleted12678303/02/2022 20:04

    Nobody can answer you as gas wholesale prices could plummet later this …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 fixYour 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% more7.47p unit gas. I pay 2.41p so you pay 210% more

    46831244-aksY9.jpg
    46831244-x4f2M.jpg
    Electric was 14.022 and gas was 2.405 before tariff ended on 31/1/22
  30. Avatar
    InForAPenny202103/02/2022 20:16

    [Image] [Image] Electric was 14.022 and gas was 2.405 before tariff ended …[Image] [Image] 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

    46831409-ioDfH.jpg


    46831409-MVYR2.jpg (edited)
  31. Avatar
    Author
    deleted12678303/02/2022 20:41

    I have your pain to come but will be going for variable rate as can see …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[Image] [Image]


    That was my issue…

    The new price cap average prices are high…

    More importantly, we don’t have gas in our kitchen…
    46831464-yN8pq.jpg

    InForAPenny202103/02/2022 20:50

    That was my issue… The new price cap average prices are high… More imp …That was my issue… The new price cap average prices are high… More importantly, we don’t have gas in our kitchen… [Image]


    And don’t forget a predicted increase of 20% in October. This increase was only meant to be 49%, it hit 54% (edited)
  32. Avatar
    InForAPenny202103/02/2022 20:50

    That was my issue… The new price cap average prices are high… More imp …That was my issue… The new price cap average prices are high… More importantly, we don’t have gas in our kitchen… [Image] And don’t forget a predicted increase of 20% in October. This increase was only meant to be 49%, it hit 54%


    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.
Avatar
Discussions
Top Merchants