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Should I lock into new deal now?

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13

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  • 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
    Ultrasonic Posts: 4,265 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    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
    meinnit Posts: 929 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    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
    bagand96 Posts: 6,543 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 27 November 2021 at 11:53AM
    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
    jimjames Posts: 18,657 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Ultrasonic
    Ultrasonic Posts: 4,265 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 27 November 2021 at 5:58PM
    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
    Astria Posts: 1,448 Forumite
    1,000 Posts Second Anniversary Name Dropper
    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
    meinnit Posts: 929 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    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 :D
  • Ectophile
    Ectophile Posts: 7,975 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • I would wait for the markets to crash then lock in 
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