Gas kWh unit rate.

Anderson1863

Hi there,

I have had my tariff though for next year my gas unit rate is at £12.81 per kWh now this seems extortionately high? I just read an article here which say the new cap was £7.37 kWh. So how can it be that mine is set so high?

GunJack

I think you mean 12.81 pence per kWh...

Have you signed up for a very expensive fixed rate??

Anderson1863

Yes pence sorry!

haven’t yet signed up this is just the fixed renewal quote they have sent me through today. 

[Deleted User]

Hi,

it may be because you are going for a fix, could be cheaper on the cap.

Ultrasonic

Anderson1863 said:

Yes pence sorry!

haven’t yet signed up this is just the fixed renewal quote they have sent me through today. 

Like everyone else you have to take your personal gamble regarding what the price cap increase will be in October. Before then the price cap price will clearly be cheaper but after then will the price increase be high enough to make it that the fix would have worked out cheaper? I suspect most would gamble on staying on the price capped variable rate right now but its impossible to be sure.

Rather than just looking at the unit price for gas it is best to consider your estimated annual gas and electricity usage in kWh, and to calculate what the total annual cost will be for competing options, including the standing charges.

Anderson1863

[Deleted User] said:

Hi,

it may be because you are going for a fix, could be cheaper on the cap.

Sorry when you say could be cheaper on the cap, Is that the variable option they have offered me which yes I noticed was siginficalty cheaper. 4.04p/kWh but I was under the impression it was best to fix in these uncertain times?

[Deleted User]

Hi,

yes, if you do nothing you will default to the standard variable rate, but as Ultrasonic said above it's a gamble, as nobody knows what prices will be in October.

Ultrasonic

Anderson1863 said:

[Deleted User] said:

Hi,

it may be because you are going for a fix, could be cheaper on the cap.

Sorry when you say could be cheaper on the cap, Is that the variable option they have offered me which yes I noticed was siginficalty cheaper. 4.04p/kWh but I was under the impression it was best to fix in these uncertain times?

Yes, it is the standard variable rate that is subject to the OFGEM price cap. The 4.04 p/kWh figure isn't relevant to you though since this will be replaced from 1 April by (presumably) the 7.37 p/kWh figure you mentioned.

There is no simple 'best' in terms of what to do I'm afraid, as per my post above.

Anderson1863

Ultrasonic said:

Anderson1863 said:

[Deleted User] said:

Hi,

it may be because you are going for a fix, could be cheaper on the cap.

Sorry when you say could be cheaper on the cap, Is that the variable option they have offered me which yes I noticed was siginficalty cheaper. 4.04p/kWh but I was under the impression it was best to fix in these uncertain times?

Yes, it is the standard variable rate that is subject to the OFGEM price cap. The 4.04 p/kWh figure isn't relevant to you though since this will be replaced from 1 April by (presumably) the 7.37 p/kWh figure you mentioned.

There is no simple 'best' in terms of what to do I'm afraid, as per my post above.

Yes I did suspect that 4.04p/kWh may rise to 7.37/kWh. 

Thank you for explaining I hadn’t realised the price cap was only relevant do the variable tariff. 

A few things to ponder then. Thanks for the replies. 

bristolleedsfan

Anderson1863 said:

Ultrasonic said:

Anderson1863 said:

[Deleted User] said:

Hi,

it may be because you are going for a fix, could be cheaper on the cap.

Sorry when you say could be cheaper on the cap, Is that the variable option they have offered me which yes I noticed was siginficalty cheaper. 4.04p/kWh but I was under the impression it was best to fix in these uncertain times?

Yes, it is the standard variable rate that is subject to the OFGEM price cap. The 4.04 p/kWh figure isn't relevant to you though since this will be replaced from 1 April by (presumably) the 7.37 p/kWh figure you mentioned.

There is no simple 'best' in terms of what to do I'm afraid, as per my post above.

A few things to ponder then. Thanks for the replies. 

Martin Lewis on Twitter: "A glimmer of hope! As wholesale gas price has dipped so has Oct's price cap prediction from @CornwallInsight On TYPICAL Direct Debit use Today's cap: £1,277/yr 1 April cap: up 54% to £1,971 1 Oct cap prediction: up 29% £2,512 (before up 50% to £2,950) Still awful. But better." / Twitter

[Deleted User]

Hi,

have a look HERE at QrizB's post, and click on link in the signature, will give you an idea of April prices.