Typical energy bill to fall to lowest for two years under new Ofgem price cap BBC have reported the typical energy bill will fall to £1,690 from April to the lowest for two years under the new price cap set by the regulator. It means...

[UK Sentinel]

BBC have reported the typical energy bill will fall to £1,690 from April to the lowest for two years under the new price cap set by the regulator.

It means a fall of £238 for a household using a typical amount of energy.

Lower wholesale prices paid by suppliers have led to the cut in the price cap for April to June, which will bring some relief to billpayers.

Alas both Gas and Electric daily standing charge has increased.

https://www.bbc.co.uk/news/business-68353627

In a completely sane world, madness is the only freedom (J.G.Ballard).

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[kev2021]

Hi,

Yes, I saw this and they are predicting another drop before then a slight rise in sept/oct I believe.

Do you think fixed price tariffs will drop inline with the new prices or not as I know they dropped them before. Either way, I’m not too fussed as my fixed tariff ends at the end of June and I believe can switch/change 45 days before the end day so that puts me around mind May I can change/switch tariff so not too bad.

Kev

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[UK Sentinel]

Fixed priced tariffs should fall, not sure by how much, according to Martin Lewis (moneysavingexpert.com) if the price offered by Fixed price tariffs is at least equal to or greater than 17% reduction compared to January’s price cap, then a fixed price is worth a second look.

Luckily, a Price cap is the maximum you can pay per unit (KWh) so there should be deals that undercut any current or future price caps this year before the autumn etc.

 

In a completely sane world, madness is the only freedom (J.G.Ballard).

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[kev2021]

Would the price of existing fixed rate deals fall as in the one i signed up to a year ago or just new fixed price deals will drop?

Kev

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[UK Sentinel]

That would be nice, alas A fixed tariff charges you the same rate per unit for your gas or electricity and your standing charge, until your contract ends, so even if gas or electric wholesale prices change up or down, you will still pay the same contract unit price until contract ends.

In a completely sane world, madness is the only freedom (J.G.Ballard).

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[kev2021]

Thanks, I know before when I fixed, they lowered the price but I believe that was due to the higher and higher charges and they fixed the price for everyone regardless of variable or fixed.

Not a huge issue for me as hopefully it will start to get a bit warmer from April so meaning heating not on as much so reduced bills.

I also believe it’s 45 days before your contract ends that you can start to look around/switch/re-fix etc so that brings me to around mid May I believe so will take a look around then and see what options are then when I know exactly what new tariffs will be. Might be switching again, have to see. Unfortunately most, if not all, small companies have gone under so not sure there will be much in terms of competition/price changes but will see.  Having had a quick look, it seems I could potentially save around £60 total so not worth it as I currently have £150 exit fee in total. It does seem that the unit price is coming down but the standing charge is going but so looks to be anywhere from 60/70p a day standing charge in total + unit rates.

Kev

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[kev2021]

Hi all,

 

FYI – maybe useful for some… No use to me atm as I’m fixed until End June but maybe worthwhile for some.

https://www.express.co.uk/finance/personalfinance/1877840/Cheapest-Energy-Tariff-October-2021

Kev

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[UK Sentinel]

Very interesting, EDF offering a fixed rate tariff which works out at £1,581 a year for typical usage etc.

If the typical usage price drops below £1300 a year, time for me to consider switching.

Let the price wars begin between the suppliers begin  

In a completely sane world, madness is the only freedom (J.G.Ballard).

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[kev2021]

Yeah, its supposedly cheaper than the new standard tariff rate coming in April.

Time will tell. How does it compare to Octopus?

Kev

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[UK Sentinel]

I’m on their tracker option, will have a look later when I am back home to see what options Octopus are currently offering for comparison.

In a completely sane world, madness is the only freedom (J.G.Ballard).

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[kev2021]

Thanks, might be interesting to see, even tell if EDF are actually cheaper as claimed :)

Kev

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[UK Sentinel]

EDF offering is the best deal currently as far as I could tell, will be interesting to see if other utility  suppliers embrace the price war challange.

In a completely sane world, madness is the only freedom (J.G.Ballard).

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[kev2021]

ah ok, I wasn’t sure if they would beat Octopus, very interesting.

Will have to wait and see, as most small suppliers gone, is there much incentive for the bigger companies to compete as they likely have a significant number of customers already?

Kev

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[UK Sentinel]

Trackers are hard to compare against a Fixed Price if that’s what your meant.

Price vs Risk vs Quality of Service is always a challange

In a completely sane world, madness is the only freedom (J.G.Ballard).

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[kev2021]

So energy got a So Orange 12 month fix but it’s not as good as EDFs

Kev

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