British Gas - should I change to fixed rate tariff ?

ZDuke

I was with Peoples energy but have happily been transferred to British Gas and D,Debit is ok etc etc... 
NOW BG have sent an Email about the benefits of moving onto a fixed-rate tariff. "Your current variable tariff means energy rates will fluctuate with the market value, a fixed rate tariff will protect you from a future price increase"
I'm unsure as Martin says DO NOTHING............. any advice??

Ant555

The variable rate will remain the same until April - Martin thinks it could then go up by 40% - what does that do to your monthly DD in April if you stay on the variable rate?
What will the monthly DD (based on your actual previous usage figures) be on the fixed rate you have been offered?

The fixed rate offered will almost certainly be more expensive than the variable rate right now and you would pay that over the energy hungry winter period - if its fixed long term over Winter 22/23 as well and your usage stays the same then you have some certainty over that period.

If decent fixed deals appear in Q1 and Q2 next year then there is a chance you would have been better off sticking - although I am only skim reading the headlines, I haven't seen anyone that actually thinks this will happen (happy to be corrected though)

So, my opinion, is that if the fixed rate you have been offered is the same or not much more than the variable rate, not too high exit charges and is fixed for a long time then I personally would consider it.
Again, thats my opinion but I like to fix where possible, I like certainty, I like to know what im paying and not have to worry about whats round the corner even if its means paying just that little bit more.

QrizB

Take a look at this thread, you'll see what someone else has been offered by BG. The standard variable is still cheaper than their foxes.

https://forums.moneysavingexpert.com/discussion/6319140/standard-variable-cheaper-than-any-other-offer-british-gas-help

dbks

ZDuke said:

British Gas - should I change to fixed rate tariff ?

Absolutely

But not to any fixed tariff you may have been offered by BG.

Tell them you want the British Gas Zero Oct 2022 fixed tariff that so many other MSE'ers have reported going onto.

It's fixed until Oct 2022, and has no early exit fees .
Only available on request, and via using the chat facility.
Electricity is below the current capped rate, and gas has a break even compared to current cap for less than about 9,700 kWh pa. (If your usage is higher than that, you need to do the sums and guess how much the gas capped rate will rise in April)

Gerry1

dbks said:

Tell them you want the British Gas Zero Oct 2022 fixed tariff that so many other MSE'ers have reported going onto.

It's fixed until Oct 2022, and has no early exit fees .
Only available on request, and via using the chat facility.
Electricity is below the current capped rate, and gas has a break even compared to current cap for less than about 9,700 kWh pa. (If your usage is higher than that, you need to do the sums and guess how much the gas capped rate will rise in April)

And switch to Economy 7 if you don't have it.  In my region there's zero standing charge, zero day rate surcharge compared to the single rate, and the night rate is only 53% of the day rate.  Doesn't get much better than that !

AbbieCadabra

we're ex Neon reef & have been put on their welcome tariff for electric only 0.21607p kwh & 0.25664p standing charge, the zero fixed Oct 2022 is 0.2165p kwh (south west rates).
Based on last years winter use, Dec to April bills, if we stay on welcome = £1577 but if we can get the fix £1536.  Not a great difference, but at least some protection from the probable increase in April?

edit: online with BG chat now & they're advising zero fix Oct'22 isn't an available tariff, think they may have got wise to this now & stopped it. Telling me i need to switch to a tariff that's fixed for at least 11 months, he's just searching now...."none of them will be of any benefit from what i could see).

drsquirrel

Ant555 said:

The variable rate will remain the same until April - Martin thinks it could then go up by 40% - what does that do to your monthly DD in April if you stay on the variable rate?

Is that 40% across the market, or what Britishgas will automatically switch you too (standard variable)?

I just checked with them and its 20.xxp kWh and 0p standing charge... this seems way lower than I was expecting, its actually lower than what I pay now (25p, also switched from PFP).

QrizB

drsquirrel said:

Ant555 said:

The variable rate will remain the same until April - Martin thinks it could then go up by 40% - what does that do to your monthly DD in April if you stay on the variable rate?

Is that 40% across the market, or what Britishgas will automatically switch you too (standard variable)?

It's neither.

The Ofgem cap is widely expected to rise on April. Marting thinks it will rise by 40%, I'm currently expecting it to rise by 50%.

However, this doesn't directly result in any supplier's standard variable rate rising to match it. The supplier is free to set their rate as they wish, provided they don't breach the cap. (There's a pretty good chance they will move to the new cap, but it will depend on energy prices in April.)

People on fixed rates will remain on them until they expire (and may find their bills increasing by much more than 40% when they do), people with the cap-exempted suppliers will remain on cap-exempted rates, and so on.

Gerry1

AbbieCadabra said:

we're ex Neon reef & have been put on their welcome tariff for electric only 0.2167p kwh & 0.25664p standing charge, the zero fixed Oct 2022 is 0.2165p kwh (south west rates).
Based on last years winter use, Dec to April bills, if we stay on welcome = £1577 but if we can get the fix £1536.  Not a great difference, but at least some protection from the probable increase in April?

edit: online with BG chat now & they're advising zero fix Oct'22 isn't an available tariff, think they may have got wise to this now & stopped it. Telling me i need to switch to a tariff that's fixed for at least 11 months, he's just searching now...."none of them will be of any benefit from what i could see).

Your sums are all wrong.  Unlike the Welcome tariff, zero fixed Oct 2022 has no standing charge which is a game changer.  Cheaper still if you go for E7.

MWT

Just so expectations are appropriately set, the Zero October 22 BG tariff availability is a 'mistake', doesn't mean that people aren't managing to talk their way onto it, but it has been confirmed by BG that it should not be available to any new customers and is a remnant of a previous SoLR process, so anyone being told it is not available is getting the correct information.

There does however appear to be at least one CS team that 'didn't get the memo' so if you get lucky you may still be able to get it...

travel_light

Just realised the 'Fixed April 2022' they put PFP customers on is actually exactly the same as the SVT so that's a bit cheeky making like they were being sympathetic to us especially as it was a 65% increase on electric KWH, 21% electric SC, 26% gas KWH and 30% gas SC.

The 'fixed Jan 2024' they offered this morning would be an increase from the 'Fixed April 2022' of 20% on electric unit, 34% on electric SC and 30% on gas KWH. Strangely the gas SC stays the same

That's a whopping increase from the PFP rates of 99% on electric KWH, 62% electric SC, 64% gas KWH and 30% gas SC.

Yes I do like a spreadsheet.

My gut tells me to hang tight until April when surely companies will be battling for custom again and the heavy gas usage for heating will have hopefully ramped down. If we switch now, as they are saying you need to by 20th Dec, then that will mean this winter will be on new the higher rate. I think they are being crafty and scaremongering.
This fixed Jan 2024 does cover winter 2023/2024 but only half of it in reality. Feb is always freezing as well.

If people are expecting the SVT price cap to rise by 40 or 50% then I guess the new fixed offer is worth considering although you'd have to factor in this winter at the higher rate depending how you heat your homes.

Havn't really got an answer and I guess have 10 days to consider all options.

BTW has anyone questioned the comapanies why they increase the standing charge? Surely it should be just the price per unit? Cheeky sods.