British Gas fixed tariff - price increase

Rtj123
Rtj123 Posts: 96 Forumite
Seventh Anniversary 10 Posts Name Dropper
I have just joined British Gas and gone onto there fixed tariff 'home energy secure November 2023' at £66.50 per month. They have taken my first payment,  however they have emailed to tell me I am not paying enough and want to raise my bill to £150 per month to compensate. I have tried contacting them but as usual no joy. How can they do this if I am on a fixed tariff? I live alone, in a 2 bed cottage. I barely use any energy and am out every day of the week. Can anyone give any help on what I can do? This is my first house (rented) so am new to this.
Any guidance appreciated. 
Thank you 
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Comments

  • JJ_Egan
    JJ_Egan Posts: 20,281 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Tariff is fixed thats the unit prices .
    DD is usage divided by 12 months .

    What usage figures did you give them to calculate DD / yearly usage .
  • elsien
    elsien Posts: 35,554 Forumite
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    edited 10 October 2021 at 12:07PM
    A fixed tariff does not mean you pay the same amount each month regardless of how much you use. 
    It is likely that they are expecting you to use more over the winter so have increased the dd so you don’t end up getting into debt.
    They estimate usage for the year then put the dd amount so that the summer low and winter high even out. If you use less then they think, you will be in credit. 

    When you moved to them, how did you work out what your likely usage would be, for the initial direct debit payment? 

    And are you on a smart meter/giving them regular readings or are they using estimates. If their new figure is based on an estimated reading then give them the correct ones. 
    All shall be well, and all shall be well, and all manner of things shall be well.

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  • Who set the £66.50?  If you did, on the basis of what you were paying for before, it won't be anywhere near enough to cover the recent price hikes and your winter usage.  It's a fixed tariff, not a fixed payment.  You've secured a one year fix on the standing charge and unit rate, not the amount you'll pay each month.
  • Rtj123
    Rtj123 Posts: 96 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    JJ_Egan said:
    Tariff is fixed thats the unit prices .
    DD is usage divided by 12 months .

    What usage figures did you give them to calculate DD / yearly usage .
    They haven't asked for any readings. I have a smart meter installed (not by me) which gives estimate readings on dual fuel 
    It currently says the following 
    Elec estimate = £5.52
    Gas estimate = £1.28

    Thankyou for your help so far.
  • Rtj123
    Rtj123 Posts: 96 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    Who set the £66.50?  If you did, on the basis of what you were paying for before, it won't be anywhere near enough to cover the recent price hikes and your winter usage.  It's a fixed tariff, not a fixed payment.  You've secured a one year fix on the standing charge and unit rate, not the amount you'll pay each month.
    The £66.50 is what was on the British gas website for the fixed tariff secure energy 2023. 
  • Rtj123
    Rtj123 Posts: 96 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    elsien said:
    A fixed tariff does not mean you pay the same amount each month regardless of how much you use. 
    It is likely that they are expecting you to use more over the winter so have increased the dd so you don’t end up getting into debt.
    They estimate usage for the year then put the dd amount so that the summer low and winter high even out. If you use less then they think, you will be in credit. 

    When you moved to them, how did you work out what your likely usage would be, for the initial direct debit payment? 

    And are you on a smart meter/giving them regular readings or are they using estimates. If their new figure is based on an estimated reading then give them the correct ones. 
    I am on a smart meter. Do the readings get sent automatically to British gas? 
  • QrizB
    QrizB Posts: 16,802 Forumite
    10,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 10 October 2021 at 12:52PM
    Rtj123 said:
    Who set the £66.50?  If you did, on the basis of what you were paying for before, it won't be anywhere near enough to cover the recent price hikes and your winter usage.  It's a fixed tariff, not a fixed payment.  You've secured a one year fix on the standing charge and unit rate, not the amount you'll pay each month.
    The £66.50 is what was on the British gas website for the fixed tariff secure energy 2023. 
    When you went to the BG website, they will have asked you various questions including your address, whether you want both gas and electricity, and whether you know your annual energy consumption or not.
    What did you tell them regarding your annual energy consumption?
    Here is the tariff info for my region (yours will be slightly different) assuming single-rate electricity:

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  • Smart Meters do not give estimated readings.

    You should be able to check the BG website to see if they are getting readings from you meter.

    What were the readings when you moved in and what are they today ?

    A DD is not like paying for an all you can eat buffet, it has to be adjusted to cover your annual usage.


  • Rtj123
    Rtj123 Posts: 96 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    QrizB said:
    Rtj123 said:
    Who set the £66.50?  If you did, on the basis of what you were paying for before, it won't be anywhere near enough to cover the recent price hikes and your winter usage.  It's a fixed tariff, not a fixed payment.  You've secured a one year fix on the standing charge and unit rate, not the amount you'll pay each month.
    The £66.50 is what was on the British gas website for the fixed tariff secure energy 2023. 
    When you went to the BG website, they will have asked you various questions including your address, whether you want both gas and electricity, and whether you know your annual energy consumption or not.
    What did you tell them regarding your annual energy consumption?
    Here is the tariff info for my region (yours will be slightly different) assuming single-rate electricity:

    Thank you when I signed up I didn't put the annual fuel consumption as I haven't lived there for a year. I went for the dual fuel tariff. 
  • Sea_Shell
    Sea_Shell Posts: 9,953 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    So how was your original DD amount arrived at?

    You must have had to put "something" on your application, if not usage then a "guestimate" of cost.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.98% of current retirement "pot" (as at end April 2025)
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