Should I lock into new deal now?

adamcarvell

this what im on from today.

 Electricity

Plan name

Simpler Energy

Unit rate

19.34p per Kilowatt hourkWh

Standing charge

22.63p a day

Contract start date

27th November 2021

Contract end date

Rolling variable plan

Exit fee

There are no exit fees to pay on this contract.

Future annual consumption

4336 kWh

 Gas

Plan name

Simpler Energy

Unit rate

3.79p per Kilowatt hourkWh

Standing charge

24.87p a day

Contract start date

27th November 2021

Contract end date

Rolling variable plan

Exit fee

There are no exit fees to pay on this contract.

Future annual consumption

9693 kWh

Ultrasonic

bagand96 said:

Focus on your annual use and the kWh rates, some quick maths will give you the annual costs.  That gas 8.338p/kWh is DOUBLE what you're currently paying Bulb which is at the Ofgem cap.  So for the same use your Gas bill would DOUBLE.  

Whilst I appreciate that simplifying things can be appealing, this is not universally the best advice. The total bill is crucially a combination of the standing charge and the unit price. A doubling of the unit price therefore does not result in a doubling in the total bill, and solely focusing on the unit price can lead to someone ending up on a tariff that works out more expensive overall.

meinnit

Ultrasonic said:

bagand96 said:

Focus on your annual use and the kWh rates, some quick maths will give you the annual costs.  That gas 8.338p/kWh is DOUBLE what you're currently paying Bulb which is at the Ofgem cap.  So for the same use your Gas bill would DOUBLE.  

Whilst I appreciate that simplifying things can be appealing, this is not universally the best advice. The total bill is crucially a combination of the standing charge and the unit price. A doubling of the unit price therefore does not result in a doubling in the total bill, and solely focusing on the unit price can lead to someone ending up on a tariff that works out more expensive overall.

Standing charge quoted here is similar to other suppliers SVT rate so I fully expect the bills to double in this scenario

bagand96

Ultrasonic said:

bagand96 said:

Focus on your annual use and the kWh rates, some quick maths will give you the annual costs.  That gas 8.338p/kWh is DOUBLE what you're currently paying Bulb which is at the Ofgem cap.  So for the same use your Gas bill would DOUBLE.  

Whilst I appreciate that simplifying things can be appealing, this is not universally the best advice. The total bill is crucially a combination of the standing charge and the unit price. A doubling of the unit price therefore does not result in a doubling in the total bill, and solely focusing on the unit price can lead to someone ending up on a tariff that works out more expensive overall.

It's a valid point, and I did simplify it by ignoring the Standing Charge as it was very similar between the SP fix quoted and the current SVT/cap. You are right that the Gas bill won't double, but depending on use it could get near it.  I was just trying to demonstrate to the OP that they need to sit down and work it out rather than believe the shopping centre salesman's DD quotes.

jimjames

adamcarvell said:

no im on the variable from today that fix is what boo are offering is it any good ?

Well the fix is over 50% above the price you're currently paying for gas and 25% above for electricity. Only you can judge if that is good for you to have certainty or not but I wouldn't switch to it.

Ultrasonic

meinnit said:

Standing charge quoted here is similar to other suppliers SVT rate so I fully expect the bills to double in this scenario

No. If the unit price AND the standing charge doubled, then the bill would double.

The higher someone's consumption the less significant the standing charge component becomes though.

Astria

Liamsn92 said:

Also need to get a Hive to help lower usage!

How will a Hive help lower usage? It's a thermostat, it'll control your heating like any other thermostat. It doesn't do anything magical. So the amount of gas you'll use will be the same.

meinnit

Ultrasonic said:

meinnit said:

Standing charge quoted here is similar to other suppliers SVT rate so I fully expect the bills to double in this scenario

No. If the unit price AND the standing charge doubled, then the bill would double.

The higher someone's consumption the less significant the standing charge component becomes though.

That's correct. Shall we settle on almost double? 

Ectophile

mapleridge said:

Thanks for all the comments - still not sure what to do but have to make a decision soon I guess! 

Sit back.  Chill.  You don't have to make a decision for at least a couple of months.  Maybe think again at the end of Winter.

cheapskate1983

I would wait for the markets to crash then lock in