Getting panicky about looming price hikes

MzJones

Hi like everyone else I'm really starting to fear to looming price hikes, I currently pay around £60-85 a month (electric 20.94p kwh SC 22.38p gas 3.85p kwh SC 24.84p) at its highest on a standard variable rate and I've been lucky enough to keep myself in credit and usually use the accumulated credit for Christmas which is now going to be a thing of the past. My cheapest 1 year fixed plan is showing at estimated £165 a month...I'm inclined to follow the 'do nothing, stick to variable' and I'm just posting on here for confirmation that I'm doing the right thing & would be thankful for any input...the cheapest (but shortest) fixed offered is: Electricity Unit rate 30.51p kwh 40.58p standing charge. Gas 8.45p kwh standing charge 28.73p

grandadgolfer

I think Martin did a comparison on last weeks show taking into account April and Octobers expected rise the answer was stay on the variable

double_dutchy

Hello MzJones,

Those fixed rates are higher than the price capped rates from April 1st, so until the next price cap (is that still October 2022?) you will be paying higher than you would be sticking with your SVR.

It really depends on where prices go from October - some predict another 20% rise then but that's just speculation.

A better comparison can be made with the following additional information if known

Which region are you in?
What's you annual usage for gas  and electric (in Kwh)?

EssexHebridean

Try not to panic too much, difficult though it is. Your position is that you already usually run in credit, and in addition next year there will be the additional £200 coming to help, will you also get the Council Tax discount too? If so you MUST make sure that you either ringfence that saving against future bills OR transfer the amount saved directly to your energy accounts if you're concerned about not managing to ringfence. Yes, that £200 is going to be claimed back subsequently, we know this, BUT the hope is that by the time that happens prices may have stabilised a little - we can only wait and see if that actually happens. With all that in mind, work out how much short over the year you might be - you might be pleasantly surprised and find that in fact things aren't going to be quite as squeaky as you fear. 

MzJones

double_dutchy said:

A better comparison can be made with the following additional information if known

Which region are you in?
What's you annual usage for gas  and electric (in Kwh)?

Thanks everyone for the reassurance, this is horrible isn't it!!! I'm not sure if I will get any council tax rebate as I became ill last year and stopped working and now claim pip so I'm now council tax exempt so I don't think that will apply to me and the whole £200 loan thing just adds more worry over paying it back if things don't settle down.

@double_dutchy I'm in the north west, yearly electricity is 2144 kwh gas 11314 kwh according to my statement

Thanks again

double_dutchy

Hello MzJones,

If you are paying by monthly DD and with a single rate electricity meter then the price cap for the North West region from 1st April 2022 will be as follows:

Electricity Unit rate 28.02p per Kwh + a daily standing charge of 42.24p (including VAT)
Gas Unit rate 7.34p per Kwh + a daily standing charge of 27.22p (including VAT)

Assuming that your supplier increases prices up to the price cap (almost inevitable) then.....

For 2144 Electricity annually that would work out at £754.94 and for 11314 Kwh of gas that would be £930.11 - Annual total fuel bill of £1685.05 or £140.42 per month on average.

On that basis a £165 fix probably isn't low enough to take, IMO, unless you want to hedge against a possible large rise in October

double_dutchy

MzJones said:

...the cheapest (but shortest) fixed offered is: Electricity Unit rate 30.51p kwh 40.58p standing charge. Gas 8.45p kwh standing charge 28.73p

I should add, though, that given those fixed deal rates quoted, for usage of 2144 and 11314 the monthly charge would be nearer £155 than £165, unless those rates don't include VAT?

MzJones

double_dutchy said:

MzJones said:

...the cheapest (but shortest) fixed offered is: Electricity Unit rate 30.51p kwh 40.58p standing charge. Gas 8.45p kwh standing charge 28.73p

I should add, though, that given those fixed deal rates quoted, for usage of 2144 and 11314 the monthly charge would be nearer £155 than £165, unless those rates don't include VAT?

Thanks so much for doing the maths for me, its going to be crippling for many Yes those prices for the fixed price are inclusive of 5% VAT...I'm dreading October and a chilly 2022 Christmas