Over whelmed!!!

09sophie

I have looked and read all info on the up and coming prices. My tariff ends at the end of January and I am becoming worried and overwhelmed by what to do for the best, I am with British Gas. Do I do nothing? Do I look for a capped tariff or a fixed or a variable I just don't know? I live in my own so it is average use. If anyone can explain what could be the best option or to help I would be most grateful. As it is too overwhelming 

Astria

Ask yourself this: Do you want to gamble what the energy price might be next April? Or do you want a price that is guaranteed to be fixed, but might be higher than the variable next April?

I'd say your price per unit per fuel will definitely be increasing if you've been on a fixed tariff, but by how much we don't know. For now I'd budget 6-7p/unit gas and 30p/unit electric.

For most people, the best option is to fall onto the SVR, until we know more.

TheMilkmansDad

have you read martins post on this?

https://www.moneysavingexpert.com/latesttip/#energy

should help you understand it a bit better.

Swipe

Either way, get out your winter woollies and then turn down the heating in all rooms apart from the ones you spend most time in if you think the extra cost might be concerning.

bagand96

If you do nothing you will be moved onto a Standard Variable Tariff (SVT) with British Gas.  This will be at the Ofgem price cap.  The Ofgem Price cap is due to be reviewed in April and is largely predicted to rise by 50% or more - assuming the Government don't step in, or the methodology isn't changed.

So the question to answer is are you happy going on the SVT knowing it will increase in April, or do you want to take a fix now and know your rates for the next 12 months or more.  Unfortunately there's no simple "right" answer.  Wholesale prices could fall dramatically after April meaning cheap Fixed tariffs become available again, but nobody knows.

If it helps there's another thread where a forum user has been predicting what they think the rates could after April. What should the unit prices be to cover wholesale prices? - Page 8 — MoneySavingExpert Forum  Latest prediction is around 8.3p/kWh for Gas and 31.1p/kWh for Electricity.  Obviously that's one user on a forum, however the methodology is sound. 

MuckChucker

Received from BG yesterday - fairly easy decision for the moment tbh

[Deleted User]

MuckChucker said:

Received from BG yesterday - fairly easy decision for the moment tbh

The only thing that BG can say with any certainty is what their 'like for like' will cost with whatever usage rates have been used for your circumstances.  What they are unable to state is what the SV costs and tariffs will will as there will be at least 3 increases in the SV 'cap' between now and July 2023.  So the situation is not as clear cut as it might appear.
  

Ant555

09sophie said:

If anyone can explain what could be the best option or to help I would be most grateful. As it is too overwhelming 

>your options.

If you do nothing (as is the current general advice) then your rates will automatically change to the current 'price cap', this is almost certainly going to be a higher rate than you are currently paying.  Assuming no major changes to policy, that rate is also going up again in April, possibly by 50% and some say it could be more, so your rates will increase again at that time.  That would be 2 x price rises for you in the start of 2022 and its also likely to be reviewed in October 22.

This makes people like me that have taken fixed rates for as long as I can remember, very nervous.

The only certainty in this uncertain situation is that prices are going up.

Some may gamble and take a seemingly very expensive fixed rate now, gambling that when the cap is adjusted in April 22 and again in autumn 22, its going up even more, so they are protected.  It could be a relatively expensive gamble if it turns out to be wrong but even the experts dont yet know the price changes for April 22 and October 22 so it could mean that at the end of 12 or 24 months, you were glad you did.

There don't seem to be any current fixed rates that are close enough to the cap to make it a no brainer.

Its little comfort but its not just you as millions of households are facing the same situation.

I think that once the energy providers know what is happening to the price cap in April and if there will be government support, there will be more certainty as to the longer term rates on offer.  

For you, I suspect that the best option will be to do nothing right now and keep an eye on what BG will offer you as a fixed rate and also keep an eye on these boards for news of any reasonable fixed rates as there will be an explosion of activity at that time.

Hope this helps

bagand96

MuckChucker said:

Received from BG yesterday - fairly easy decision for the moment tbh

That Gas tariff might look like fairly good value come April.  Electricity less so but might be about the going rate.

09sophie

Ant555 said:

09sophie said:

If anyone can explain what could be the best option or to help I would be most grateful. As it is too overwhelming 

>your options.

If you do nothing (as is the current general advice) then your rates will automatically change to the current 'price cap', this is almost certainly going to be a higher rate than you are currently paying.  Assuming no major changes to policy, that rate is also going up again in April, possibly by 50% and some say it could be more, so your rates will increase again at that time.  That would be 2 x price rises for you in the start of 2022 and its also likely to be reviewed in October 22.

This makes people like me that have taken fixed rates for as long as I can remember, very nervous.

The only certainty in this uncertain situation is that prices are going up.

Some may gamble and take a seemingly very expensive fixed rate now, gambling that when the cap is adjusted in April 22 and again in autumn 22, its going up even more, so they are protected.  It could be a relatively expensive gamble if it turns out to be wrong but even the experts dont yet know the price changes for April 22 and October 22 so it could mean that at the end of 12 or 24 months, you were glad you did.

There don't seem to be any current fixed rates that are close enough to the cap to make it a no brainer.

Its little comfort but its not just you as millions of households are facing the same situation.

I think that once the energy providers know what is happening to the price cap in April and if there will be government support, there will be more certainty as to the longer term rates on offer.  

For you, I suspect that the best option will be to do nothing right now and keep an eye on what BG will offer you as a fixed rate and also keep an eye on these boards for news of any reasonable fixed rates as there will be an explosion of activity at that time.

Hope this helps

Thank you so much for this and how you have explained it..I think i will sit tight for the moment..thank you 

Ant555

09sophie said:

Thank you so much for this and how you have explained it..I think i will sit tight for the moment..thank you 

Keep an eye on anything you are offered by email from British Gas, and keep visiting here, there are many threads every single day from people asking what to do at the end of a fix rate so if anything major changes in the advice then it will definitely be discussed at great length right here.