[Finance] Energy Prices and fixed tariffs

[Official Old Man]

Bloomin Heck
Just received my new offer of prices from British Gas after the Fixed Contract has ended.
Annual cost before - £1314 : New Standard Variable - £1828 : Fixed until July 2023 - £3072

That's £1100 MORE this year than last year. Nearly doubled.
Looking closer, the Standing Charge (what they charge and nothing to do with wholesale costs) has gone from 16.907p to 24.038p. That is a 50% rip off increase.

 

[Audax]

Looking closer, the Standing Charge (what they charge and nothing to do with wholesale costs) has gone from 16.907p to 24.038p. That is a 50% rip off increase.

That looks like elec only standing charge increase? For my current provider (Shell Energy) the standing charge is different depending on fuel, and the gas hike is even worse!

My fix ends later this month:

GAS: from 10.55p / day to 26.11p / day
ELEC: from 13.60p / day to 24.03p / day

And the per kWh rate changes:

GAS: from 2.649p to 4.053p
ELEC: from 16.919p to 21.557p

At the moment, no real option for switching. The kWh unit price is fixed so the same for everyone, so the only differentiator is on standing charge - but realistically the options I'd been looking at simply aren't available now as they're not taking on new customers (eg Octopus). Which is really going to P me off until i can switch, as Shell's Broadband business have made an absolute pigs breakfast of resolving a problem on my account that they created when they "lost" a payment a few months ago. It's just been escalated to the Ombudsman...

 

[Official Old Man]

That looks like elec only standing charge increase? For my current provider (Shell Energy) the standing charge is different depending on fuel, and the gas hike is even worse!

My fix ends later this month:

GAS: from 10.55p / day to 26.11p / day
ELEC: from 13.60p / day to 24.03p / day

And the per kWh rate changes:

GAS: from 2.649p to 4.053p
ELEC: from 16.919p to 21.557p

At the moment, no real option for switching. The kWh unit price is fixed so the same for everyone, so the only differentiator is on standing charge - but realistically the options I'd been looking at simply aren't available now as they're not taking on new customers (eg Octopus). Which is really going to P me off until i can switch, as Shell's Broadband business have made an absolute pigs breakfast of resolving a problem on my account that they created when they "lost" a payment a few months ago. It's just been escalated to the Ombudsman...

Should have said this is for electric. Still waiting for the gas hike from the same company.
Your electric price is 21.557p which you say is fixed by the government. Mine will be the same.

 

[schmunk]

I'm with OVO and my fix ends in a few days.

Currently paying ca. £120/month and this will increase to ca. £180/month on the capped variable rate. Ho hum.

They are however trying to persuade me to move to a new fixed plan for 1, 2 or 3 years, each generously priced at THREE HUNDRED AND FORTY ****ING FIVE POUNDS/month (£34****ing5/month).

 

[LamieRobertson]

I watched a programme on whether to switch with Martin Lewis and I’m sure he said best rate was to stay on variable until Easter when cap gets changed as it’s currently below market cost (I.e supplier is making a loss) but that was a few weeks ago so it might have changed.

That’s definitely what he’s been saying …I’m sure I saw somewhere that he was going to do an update via moneysavingexpert.com sometime this week.

Personally currently on a two year fix that doesn’t expire until November this year ..not that I’ve told the rest of the household that ..trying to get them into good habits


Edit MSE updated its advice today…worth a look imho

NI going up in April(?) as well…..OUCH

 

[Official Old Man]

Read it and weep.
Just checked my shop electric contracts. Fixed with British Gas (so wont collapse) until 2023
You're currently on
Acquisition 3 Year Fixed Rate
Tariff type:
Fixed
Unit rate - Any Time:
16.33 p/kWh
Standing charge:
25.72 p/day
Ends on:
02/04/2023
I feel so goooood.

EDIT EDIT
Looked up my other shop and even better-

You're currently on
Acquisition 3 Year Fixed Rate
Tariff type:
Fixed
Unit rate - Any Time:
15.78 p/kWh
Standing charge:
26.15 p/day
Ends on:
24/12/2023

 

[Wardy's twin]

why are standing charges going up when it is the price of gas that's rising ?

 

[Shropshire Seagull]

This is nonsense. When looking to change you get a quote based on your current usage - which your existing supplier provides. That’s how comparison websites work. So you get a quote based on your usage - which will only differ the following year if you make any significant changes to appliances or you use your heating more because we have a long winter cold snap.

Any increase after the customer is on board will only be if the customer has supplied an incorrect usage figure. If what you are saying was true - how come the OP has a £300+ credit balance on his account. I also have a credit balance on my account and payments have stayed the same since I switched!

You are right in that the only way to truly compare is to look at cost per KWh and daily standing charge - and if you know your annual usage you can do some sums [Excel is your friend] to properly compare.

However, I've been cold-called by energy sales staff many times over the last 10 years - all they ask is "how much are you paying now?" I quickly explain that that figure is irrelevant as it may be influenced depending on whether its been reduced because I had built up a nice credit or its been enlarged as I had been under-paying previously. After I've said this they retort with "we can reduce it by £20 per month"

At this point I ask them to email me their KWh charge and daily standing fee for Gas & Electric so I can properly compare - they ask what am I being charged currently - I tell them - they say "that's a very good deal, we can't get that low" - yet they had offered me a lower DD - its a selling trick that can sucker in those who don't properly understand how their energy bill is made up and are swayed by the "save £££" DD headline that, as the previous poster said, won't last very long.

 

[Wardy's twin]

You are right in that the only way to truly compare is to look at cost per KWh and daily standing charge - and if you know your annual usage you can do some sums [Excel is your friend] to properly compare.

However, I've been cold-called by energy sales staff many times over the last 10 years - all they ask is "how much are you paying now?" I quickly explain that that figure is irrelevant as it may be influenced depending on whether its been reduced because I had built up a nice credit or its been enlarged as I had been under-paying previously. After I've said this they retort with "we can reduce it by £20 per month"

At this point I ask them to email me their KWh charge and daily standing fee for Gas & Electric so I can properly compare - they ask what am I being charged currently - I tell them - they say "that's a very good deal, we can't get that low" - yet they had offered me a lower DD - its a selling trick that can sucker in those who don't properly understand how their energy bill is made up and are swayed by the "save £££" DD headline that, as the previous poster said, won't last very long.

i used to get broadband calls offering me reduced bills even though my was paid for by the company i worked for

 

[banjo]

3.3 billion pounds profit. I glad we could all chip in and help.

 

[Oh_aye]

I'm with OVO and my fix ends in a few days.

Currently paying ca. £120/month and this will increase to ca. £180/month on the capped variable rate. Ho hum.

They are however trying to persuade me to move to a new fixed plan for 1, 2 or 3 years, each generously priced at THREE HUNDRED AND FORTY ****ING FIVE POUNDS/month (£34****ing5/month).

I'm on about 180 or thereabouts with ovo and it's been like that for a while. The capped offers are insane. Unless we see a potential unlimited hike in the future. Its maintained at roughly 180 for a while.

 

[Nitram]

I fixed my gas with SO Energy when they offered the deal a month ago, seemed a good deal and hedging bets against potential rises in the Winter, especially as the Ukraine war is dragging on.
The offer from EDF at one percent more than present tariff rate for Electricity seems poor especially as rates are predicted to drop in October. So I’m staying on the variable rate for now.

 

[fly high]

Ofgem same as Ofwat, supposed to regulate to protect consumers but seem more interested in looking after these private companies. British Gas saying they will reward their share holders, what about hard pressed families? They only possible way they may benefit is if their pension has any shares.

 

[Audax]

British Gas (and parent company Centrica) have reported massive profits this morning. Expect this to fuel strong criticism of Ofgem's handling of setting the retail price caps. Hopefully that then leads to Ofgem reverting some of the decisions they made earlier this year that artificially kept the price cap higher than it needed to be to "allow retailers to recoup losses".