Where to next.... British Gas fixed tariff coming to an end Feb 2022

original1

The gas and electricity tariff with British Gas is coming to an end end of Feb 2022 (Exclusive Energy Feb 2022 v2).

Current DD is £85 per month, but usage is around £1600 I think, so DD's should be around £130 per month.

Is it best to try and fix now with another provider or leave as is on the standard variable rate with British Gas ?

QrizB

There are a lot of similar threads here (here's a recent one) where people have fixes ending in the near future.

It's not likely to be worth switching (variable rates are all the same, and fixed rates for new customers are extremely high) but you might be offered a "loyalty" rate with BG.

Whether to take the loyalty rate or drop onto the capped variable tariff all depends on exactly what rates you're being offered and how they comare to the cap, not just as it is currently but how it's expected to change in April.

[Deleted User]

original1 said:

Current DD is £85 per month, but usage is around £1600 I think, so DD's should be around £130 per month.

Hi,

if that's the case then if you stick with BG you can expect a double dunt, clawback of what you will owe and a hike in rates.

original1

Thanks to both the replies, I will take a look at the link above. Just don't want to make a mistake and fix when I could get a cheaper rate.

wittynamegoeshere

If you're even considering fixing then look at the exit fees, I think BG were charging £150 for dual fuel recently, which is extremely high.  If prices were to drop you need to be able to get out of it.

Look at the unit and daily rates, this is the only way of seeing the actual price they're offering.

spot1034

There's an increasing head of steam building now to force the govt and Ofgem to mitigate the huge increases expected in April, firstly by relief from green levies and/or VAT added to bills, and secondly the debts incurred by providers to be reclaimed over a much longer period than would be the case if present rules apply. Expect to hear much more of this in the coming weeks in anticipation of the announcement of the new cap in February. 

Anyone thinking of fixing right now needs to bear this in mind.

wakeupalarm

If you are with British Gas, can you not try to move to the BG Zero Fix October 22 tariff which is cheaper then the SVR tariff and fixed to October 2022?

Gerry1

wakeupalarm said:

If you are with British Gas, can you not try to move to the BG Zero Fix October 22 tariff which is cheaper then the SVR tariff and fixed to October 2022?

Sadly that ship almost certainly sailed quite a while ago, but I suppose one can always try for the jackpot !

wittynamegoeshere

Any changes to the capped price will apply only from 1st April.  The "variable" tariff cap is effectively a fixed tariff, until the end of winter.

Any higher rates from 1st April will only be for your summertime consumption, which for almost everyone is significantly less than is used in the winter.  With a fix. you could end up paying a premium on the bigger amount of energy used in the winter just to possibly reduce the price when you'll be using much less.

ANY supplier could go bust at any time, even the likes of BG.  If this happens then you do not get back any of the extra you have been paying on top of the current capped price.  They take your money, you get nothing back in return.

Absolutely nobody knows what will happen next winter.  Prices may be lower, in which case you'll end up paying more than necessary and/or paying £150 to exit the fix, or prices may be even higher, in which case one or all suppliers may just decide to give up and close down, leaving the government to pick up the pieces.  There's only a very narrow band in the middle where you could actually save money and your supplier doesn't decide to pack up and walk away with the extra money you've been paying them for "protection".

savers_united

Gas prices the last few days have eased back, mainly due to holiday season, LNG shipments into Europe, full storage in Asia and generally milder weather for time of year.

The spot price is at around 6.5p at the minute (Octopus tracker), it was over 15p a week ago, it ishighly likely that come Jan / Feb it will be back up to the highs, but it just goes to show how quickly things can change and how external factors affect the pricing and sentiment. 

As others have said the April hikes will be for usage during the warmer months, so Gas increases will not be as bad as they would during winter. If Europe and Asia maintain full storage during the summer then we could get a glut of NG when combined with LNG shipments and NS 2 approval we could be in a totally different place next winter and the October cap review. On the other hand war in Ukraine and prolonged cold weather in Jan / Feb and beyond could change everything. 

lisyloo

Gerry1 said:

wakeupalarm said:

If you are with British Gas, can you not try to move to the BG Zero Fix October 22 tariff which is cheaper then the SVR tariff and fixed to October 2022?

Sadly that ship almost certainly sailed quite a while ago, but I suppose one can always try for the jackpot !

I asked for it 22/12 and I think I have it (waiting for it to show). Seems to be random.