Zog variable or fixed?

Norman_Castle

Currently on Zogs varaible tariff and just had an email about price rises. I was on a fixed deal until about a month ago and should have fixed before that ended. I've stayed on the variable because its been cheaper than fixing. Their post October variable is as below, £200.59 but their cheapest fix for me is £229. Is their new variable price at its maximum allowed under the price cap but happens to be cheaper for me due to my low use or can it increase again? How often is the price cap reassessed?

Your new prices

Current Prices until  13th October 2021  New Prices after  13th October 2021  Gas Standing Charge (per day) 24p 24p   Unit Rate (per kWh) 3.16000p 3.85400p

All charges exclude 5% VAT, which will be added to your total bill.

Here's an idea of how the price increase will affect you, assuming you continue to use the same amount of energy.

Current Prices until  13th October 2021  New Prices after  13th October 2021 Increase in cost   Your personal projection for the year Gas £181.04 £200.59 £19.55

Your personal projection includes VAT at 5%

greenguppie

I'm not sure what variable Zog tariff you are currently on.
Afaik, they only have one variable tariff, Juniper
That currently charges 25.2p per day and between 3.23p and 3.46p per kWh depending on supply region. (I don't think that takes into account a price rise allowed under the forthcoming price cap increase)
For some reason, they actually reduced the standing charge from 26.25p just last Thursday
It had been that price since early May 2021.

A month ago, you could have fixed with Zog for 12m at 24.15p per day and between 3.16p and 3.44p per kWh (or 24 months for 2.1p per day more)
If you wanted to avoid the early exit fee of £30, you could have agreed to pay about 0.1p extra per kWh.

But to answer your question, Ofgem revises its cap every 6 months (which it sets about 2 months before it implements it), and following the recent massive price rises for wholesale gas, I would expect a whopper of a rise on April 1st, 2022.
Who knows what the fixed rates will be then?

Edit:
Sorry, just noticed your prices exclude VAT
My prices include VAT

e,g. 24p per day + VAT @ 5% = 25.2p per day

bristolleedsfan

Norman_Castle said:

 Is their new variable price at its maximum allowed under the price cap

Current Prices until  13th October 2021  New Prices after  13th October 2021  Gas Standing Charge (per day) 24p 24p   Unit Rate (per kWh) 3.16000p 3.85400p

All charges exclude 5% VAT, which will be added to your total bill.

That is the maximum kwh rate they are likely to charge until 30 March 2022 -

bristolleedsfan

greenguppie said:

For some reason, they actually reduced the standing charge from 26.25p just last Thursday
It had been that price since early May 2021.

Benchmark Max Charges for the Seventh Charge Restriction Period Gas SC - Other Payment Method  £90.81 - 1 October 2021 to 31 March 2022

Benchmark Max Charges for the Sixth Charge Restriction Period Gas SC - Other Payment Method   £92.47 -  1 April 2021 to 30 September 2021

niktheguru

Norman_Castle said:

Currently on Zogs varaible tariff and just had an email about price rises. I was on a fixed deal until about a month ago and should have fixed before that ended. I've stayed on the variable because its been cheaper than fixing. Their post October variable is as below, £200.59 but their cheapest fix for me is £229. Is their new variable price at its maximum allowed under the price cap but happens to be cheaper for me due to my low use or can it increase again? How often is the price cap reassessed?

Your new prices

Current Prices until  13th October 2021  New Prices after  13th October 2021  Gas Standing Charge (per day) 24p 24p   Unit Rate (per kWh) 3.16000p 3.85400p

All charges exclude 5% VAT, which will be added to your total bill.

Here's an idea of how the price increase will affect you, assuming you continue to use the same amount of energy.

Current Prices until  13th October 2021  New Prices after  13th October 2021 Increase in cost   Your personal projection for the year Gas £181.04 £200.59 £19.55

Your personal projection includes VAT at 5%

When you're considering whether to fix or stay on variable, you need to factor in the amount of energy you use and when you use it. You could argue, if most of your use is winter to stay on the variable tariff, then you can reassess in march/apr and if its even higher then it may not be as bad a hit as your usage over spring will be very very low. Alternatively if you use a reasonable amount in the non winter months it may benefit you to fix so you wont get hit with massive charges later on, and you can plan and budget appropriately long term.....its very much an individual decision and not a one size fits all.

But just consider that about a year ago most of us were paying between 2-2.6p/kwh for gas, and now rates are upwards of 3.5 to 5p/kwh.....i dont think its coming down anytime soon.

Norman_Castle

I think I'm staying on their variable tariff. If you view the £30 lower price as an annual saving It'll be £15 cheaper over the next 6 months and then if prices rise, as above, I use very little through the summer so a price cap increase will have a minimal effect and there's the £15 saving over those second 6 months as a buffer. If I fix for 12 months I'll be in the same position in a year, looking for a new deal. I'll keep checking the prices and have the option to take a lower deal with no penalty.

The current fixed deals seem very expensive compared to the price cap. I've always found the fixed deals noticeably cheaper for me.