Fixed Price - v - Standard Tariffs

onesixfive

Hi, can anyone tell me whether British Gas, fixed price Gas tariffs are more expensive than Standard Tariffs ?

Despite my harrassment - My 80 yr old mum refuses to pay by direct debit, and pay upon receipt of the "old quarterly bill" method - she also wishes to stick with "good old britiss gas!
However I've made enquiries (& despite her stubbornness), we can fix her tariff.
When I made the enquiry on Friday, the reply read:

Fixed Price March 2016 tariff is a simple fixed product which gives customers peace of mind that their prices will remain the same for the next three winters until 31 March 2016. The tariff prices are fixed at a premium of 5% above our Standard variable tariff rates until 31 March 2016.

I obviously queried this. Today's reply skirted around this issue, & (without disclosing her personal details), simply said

Our prices has increased to 8.4% on gas and 10.4% on electricity from 23 November 2013........Please accept my apology for the incorrect information give to you in our previous contact.

I dont want her losing out by me fixing her price for her.
I did the British Gas online energy quote. She was £70 year better off on fixed Nov 14 & £10 year on Fixed Nov 16.
I took it these calculations took no account of the imminent price rises

Advice gratefully received.

victor2

sng165 wrote: »

Fixed Price March 2016 tariff is a simple fixed product which gives customers peace of mind that their prices will remain the same for the next three winters until 31 March 2016. The tariff prices are fixed at a premium of 5% above our Standard variable tariff rates until 31 March 2016.

Their fixed rates are at a small premium above their standard rates at the time you sign up for the tariff. Their website shows what the rates will be for a particular fuel, method of payment and area.
Then they are of course fixed, until March 2016 in this case. Fixed tariffs are always more expensive than variable ones when you sign up. You start to gain when the variable rates go up, but your fixed one doesn't. That's the gamble, which seems to be less of a gamble these days - that the extra you are paying at the start will result in a saving of more than the extra cost by the time the tariff ends.

onesixfive

I've found the new unit rates for the 3 tariffs on the site - at last!
Standard is 4.96
Fix 14 is 4.96 (so thats no dearer ???)
Fix 16 is 5.23

Standard + 8.4% increase would be 5.37
so Fix 14 would be cheapest (but shortest)
& Fix 16 would be slightly cheaper

am I right ??

victor2

That looks about right. Bear in mind that standard tariffs are usually the most expensive variable rate, so while the Fix 14 seems to match it, it is still probably more than their other variable rates. You also need to compare the standing charge and discounts (for dual fuel etc.) offered on each tariff. That's why it's often better to use a comparison site with your annual usage in kWh. It does all the work for you and there's no need to switch through it, just use it to show you what the costs will be.