Renewal

trainedsoldier

Just got a letter from British gas saying my deal comes to an end at the end of this month. They estimate my bill for the next year to be £1274.49 on their best tarrif fixed until July 2023. They also tell me if i go on their standard variable rate it should cost me £1227.32 per year. Question is should i fall onto standard and hope for a better deal later or should i take their 2 year fixed rate or look for another supplier altogether?

[Deleted User]

You should do a full market comparison based on your postcode and consumption (in kWhs/year) to see if there are cheaper tariffs available. Also, look at separate gas and electricity suppliers.

When any supplier offers a 2 year tariff it will have built in forecast price increases. For example, if a supplier offers you a tariff at £1200 for a year, and a 2 year tariff at £1300 per year then you are paying the extra £100 for 2 years. It follows that if you went for the 1 year fix at £1200, then for the following year your new fixed tariff was £1320 ( a 10%) increase, you would end up £80 better off. You need to do your own sums based on the fixed prices offered.

Robin9

@trainedsoldier  Judging by the sums involved - is this for gas and electric.?  The school of thought these days is that separate suppliers are cheaper. Just use the comparison sites three times - one for gas, second for electric and a third for dual.  Could be 5 mins well spent.

What are your actual annual consumptions - in kWh not £ ?    On face value  - you are above average consumer.