Energy Price Rises Hi all, What’s everyone thinking of doing RE energy bills? Going on variable and paying the cap prices? Choosing a 1 or 2 year fixed tariff? Staying with current supplier...

[UK Sentinel]

That does’t sound like the Capitalist country we live in

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[kev2021]

Hi,

So checked my provider this evening and it seems they are offering a fixed tariff.  Here is the info:-

Existing tariff:

Unit rate (Electricity) 33.97p per kWh
Standing charge (Electricity) 43.64p per day

1 year Fixed tariff being offered from July 2023:

Unit rate (Electricity) 29.37p per kWh
Standing charge (Electricity) 43.63p per day

So effectively standing charge remains the same, only unit price coming down a bit.  Assuming the calculation they have done is correct on my estimated annual cost, I’d save approx. £40 over the 12 months. so just over £3 a month saving

Doesn’t say by which date I need to accept the offer but unsure if its worth it as no one knows what the rates will be July – Oct so I could fix and find out the variable rate drops lower than my fix?

Kev

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[UK Sentinel]

£3 a month potential savings, not worth the consideration especially when July is just around the corner for the next set of price caps (hopefully)

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[kev2021]

True but the the price in July only till Oct then rumours are will go up. So might be worth it?

Kev

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[UK Sentinel]

Tricky one I do agree

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[kev2021]

I’m getting tempted to go with it, might help offset rise in October although rumour was it would be small.  For me, its just Elec as my gas is already fixed so potentially not too much change as same things on etc, unlike Gas where use more in winter for heating etc, Elec is a bit more consistent.

Kev

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[UK Sentinel]

Do you not think the price may change next month once the price cap has been allowed for ?

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[kev2021]

Hi,

So it seems the new average standard prices from July 1st will be:-

Gas
Unit rate: 7.51p per kilowatt hour (kWh)
Standing charge: 29.11p per day

Electricity
Unit rate: 30.11p per kWh
Standing charge: 52.97p per day

——————————————————————

Existing Elec tariff:

Unit rate (Electricity) 33.97p per kWh
Standing charge (Electricity) 43.64p per day
No Exit Fee

Existing Fixed Gas tariff:-

11.2 p/kWh (I think from July, not 100% as its on price cap atm)
Standing charge 26.11p per day
£60 exit fee

——————————————————————-

1 year Fixed tariff being offered from July 2023:

Unit rate (Electricity) 29.37p per kWh
Standing charge (Electricity) 43.63p per day
£75 exit fee

No gas due to existing Fix deal.

So based on the above, *IF* I left it and went on the standard price rate from July, my unit price would drop approx. 3p but my standing charge will go up approx. 8p per day.

If I sign up to the Fix, my unit prices drops approx. 4p and my standing charge remains the same.

So from that point, it looks like it’s worth doing right for Elec? Especially fi they say prices will go up a little in Oct..

Gas I’ve not been offered so will leave that and maybe get out later but need to calculate will i save £60 by doing so.

Link to MSE article for info, prices at the bottom : https://www.moneysavingexpert.com/utilities/-are-there-any-cheap–fixed-energy-deals-currently-worth-it–/

Kev

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[UK Sentinel]

The electric deal does sound tempting, especially if it eases your mind and provides some budgetary security

As you say Gas is a conundrum for another day.

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[kev2021]

Hi,

I’m a relatively low user so to that extent it isn’t a major worry but still comes down to why pay more if you don’t have to :) It’s not like they will reward any loyalty etc :)

I was on the fence before as I didn’t know what the rates would be in July but seeing the average now places the 12 month fix in perspective.  Its a little cheaper per unit but not really make much of a difference but the standing charge is a fair bit higher per day so considering that may increase in Oct, I think I’m going to sign up to the deal offered.

I’ve msg’d them to find out about the fixed gas tariff as I’ve advised I’m happy to pay the £60 exit fee if its beneficial so waiting to hear.  I might not be able to as I believe companies are only offering the fixed contracts to certain customers but unclear on how they decide who is eligible for it.

So I’m going to sign up to it, its a reasonable deal and cheaper than the July prices it seems and hopefully cheaper than the October prices.

On the plus side, this deal ends June next year and my gas is currently assuming i don’t exit the deal ends in Aug/Sept next year so hopefully then will be more options around to switch or better deals with existing supplier.

Has it given you food for thought on your energy as I recall your deal was up June/July? Is your supplier offering any fixed tariffs atm?

Thanks

Kev

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[UK Sentinel]

kev2021 wrote:

I’m a relatively low user so to that extent it isn’t a major worry but still comes down to why pay more if you don’t have to :) It’s not like they will reward any loyalty etc :)

Totally agree, yes my Octopus deal ends this month and as yet, no fixed tariffs are on offer I believe, so am awaiting the price cap news next month and then probable jump on a 12 month fixed deal to tide me over the winter.

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[kev2021]

I signed up to the 12 month fixed yesterday so I’m in the 14 day cooling off period so will wait and see if they advertise the actual prices, the ones i posted previously were the “average” according to MSE so will wait and see but either way, the fix is in the right ball park area so should be ok.

Not heard back re Gas yet.

Kev

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[UK Sentinel]

Brave, will be interesting to see the advertised actual prices when they are/if released

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[kev2021]

Just had a reply to my Gas enquiry.

So Existing fix tariff until Sept. 2024 is:

Unit price: 11.12p/kWh

Standing charge 26.11p/day

Exit fee £60

New ! year fix tariff is:-

Unit price: 7.19p/kWh

Standing charge 29.09p/day

Exit Fee: £75

 

Both above tariff info is inc. VAT.

 

So what do people think?

From a rough calculation (assuming I have it correct), I’d save well over the £60 exit fee so seems like could be worth it?

Only down side I can see is that *if* i wanted to get out of both Elec & Gas fix, it would cost me £150 so chances are even if prices were less, it wouldn’t be worth paying the £150 but it is only a 12 month fix.

Kev

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[UK Sentinel]

So just read this at MSN.com

Four major energy companies are now offering fixed deals to selected existing customers:

• So Energy: 12-month fix from 1 July 2023 – £2,036 a year with typical use (£150 exit fee)
• British Gas Select Jul24: £2,044 a year with typical use (£200 exit fee)
• E.ON Next Loyalty Fixed v3: £2,050 a year with typical use (£150 exit fee)
• Ovo Energy 1 Year Fixed: £2,220 a year with typical use (£150 exit fee)

As Ofgem price cap is set to fall to £2,074 next month then in theory your deal is lower already but by October prices could reduce again.

It is like being on the stock exchange, but given the new Unit price and exit fees and market stability, the new 1 year fix tariff is Ok.

Standing charge has increased considerable which is painful.

I would go for it

 

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