British Gas - SVR or Fixed - please help!

peatarty

Hello!

I have been on British Gas Duel Fuel  svr for ages. 10 days ago I panicked about gas prices and moved to their fixed rate tarif. Home EnergySecure Nov 23. Even though this looked to be more expensive.
At the time I thought it meant I would save money over the 2 years as prices were going up...

However I am now reading about advice to stay on SVR - should I move back in the cooling off period?

If I do I lose a chance at that rate as the new HomeEnergySecure v2 rate is about £200 more a year!! Why are the new tariffs so expensive? Is it better to get a tarrif before they just increase more?

If I stay on SVR will I lose over the next 2 years? 

I don't really understand what is going on and thought fixing would save money... I have a couple of days left to change my mind I think!

Thankyou

JJ_Egan

More expensive as worldwide prices are rising .

wind and other sources have been low . Putin turned down gas .

Fixed tariff yes if you believe prices will rise ( looks certain over short term )

As always compare unit costs .

peatarty

I can see that prices are rising - and yes due to worlwide issues. 

It looks like people are recommending people stay on SVR and I don't really get that when normally I'd have thought fixing now was safest. Fixing now will cost me more in the short term though. 

[Deleted User]

The price of gas and electricity has risen because of an extraordinary increase in the cost of wholesale gas. Gas is also used to generate electricity.

To answer your other question, only you can decide. My crystal ball is very cloudy when it comes to future prices. What is certain is that the Ofgem Cap will increase substantially in April 2022 so you might be spending £100 more over the next 6 months to save in the longer term.

Edit: to put some meat on the above. The wholesale price of gas on 1st October 2020 was 1.132p/kWh. Yesterday it was 5.462p/kWh and today it is 6.198p/kWh. (Source: Octopus Tracker data).

MWT

peatarty said:

Hello!

I have been on British Gas Duel Fuel  svr for ages. 10 days ago I panicked about gas prices and moved to their fixed rate tarif. Home EnergySecure Nov 23. Even though this looked to be more expensive.
At the time I thought it meant I would save money over the 2 years as prices were going up...

Was it 'HomeEnergy Secure Nov 2023' or 'HomeEnergy Secure Nov 2023v2' ?

peatarty

The one I have is the HomeEnergySecure Nov 2023 as it was 10 days ago. I can see the v2 is even more, hence worrying that if I leave that tarrif it might have been a "good" one?

i know there's no crystal ball but it seems Martin Lewis is recommending svr for some circumstances and riding it out - hence wondering if I should change my mind/ use the cooling off thing to go back to svr. 

The Fixed Tarrif was more than the svr for now. 

We are in an end terrace 3 bed  2a and 2c if it makes a difference -so they are using "average" prices when BG give me predictions!

[Deleted User]

peatarty said:

The one I have is the HomeEnergySecure Nov 2023 as it was 10 days ago. I can see the v2 is even more, hence worrying that if I leave that tarrif it might have been a "good" one?

i know there's no crystal ball but it seems Martin Lewis is recommending svr for some circumstances and riding it out - hence wondering if I should change my mind/ use the cooling off thing to go back to svr. 

The Fixed Tarrif was more than the svr for now. 

We are in an end terrace 3 bed  2a and 2c if it makes a difference -so they are using "average" prices when BG give me predictions!

Don’t trust everything that ML posts. I believe that he is referring to consumers who have been switched to a SoLR. You are on a good deal so stay with it. In the unlikely event that energy prices fall, then just pay the exit fee and switch suppliers/tariffs.

Astria

it's a gamble whichever way you go - if you fix you protect yourself from price rises in that period but prices might come down.

If you stay on SVR, prices are lower at the minute than fixed prices, but prices might go up or down.

If you can afford the gamble then go for it, if you are worried you might not be able to afford a higher rate than what you are being offered now then stick with your fixed.

biscan25

[Deleted User] said:

The price of gas and electricity has risen because of an extraordinary increase in the cost of wholesale gas. Gas is also used to generate electricity.

To answer your other question, only you can decide. My crystal ball is very cloudy when it comes to future prices. What is certain is that the Ofgem Cap will increase substantially in April 2022 so you might be spending £100 more over the next 6 months to save in the longer term.

Edit: to put some meat on the above. The wholesale price of gas on 1st October 2020 was 1.132p/kWh. Yesterday it was 5.462p/kWh and today it is 6.198p/kWh. (Source: Octopus Tracker data).

Wow I didn't realise the increase was so large. So basically every unit of gas I use this winter loses my energy company over 3p, can see why they are in dire straits!

MWT

Very roughly, if your annual consumption is close to the figures used for the cap (3100kWh electric and 12,000kWh gas) you will be paying about £10/month more than you need to vs the SVR cap, but the cap is only fixed for the next 6 months and your rate is set for two years.

That difference could change if your usage is very different to the cap numbers, but personally, if £10/month isn't a problem for you I'd be inclined to sit back and enjoy the fix while you watch what happens and then come off the fix once you see prices low enough to cover the £40 per fuel exit penalty.

peatarty

It seems to want a huge increase in DD - not just £10. But that could reflect maybe I was underpaying/general increases.  They hadn't said that though.

I've looked up my 2020 usage amounts - 4028 kwh electricity 4586 kwh gas. Do we use a lot less gas than is predicted? Maybe that's why they seem to want me to up my DD so much!