British Gas SVR cheaper than fix?

renifer7

Hi All

I am a bit confused by the email I received from British Gas today. My fix is coming to an end and I have been presented with the below option.

In light of this, should I stay on SVR? It just seems strange to me to introduce a fix that's so much higher than SVR. Am I missing something?

Our cheapest fixed tariff overall is

£1,005.85 estimated annual cost† Based on paying by Direct Debit Fixed length tariff ends on 12 months £0 exit fee for Electricity £0 exit fee for Gas Click here for current terms.	Electricity: £615.12 Based on using 1,300kWh Standing charge: 33.51p per day Unit rate: 37.91p per kWh Gas: £390.73 Based on using 2,253kWh Standing charge: 31.33p per day Unit rate: 12.27p per kWh

Exclusive Fixed Energy v13

Standard Variable Tariff

£771.24 estimated annual cost† Based on paying by Direct Debit If you don't select a new tariff by 09/05/2022, you'll move onto this tariff Price tracks the cap set by Ofgem No exit fee Click here for current terms.	Electricity: £502.53 Based on using 1,300kWh Standing charge: 32.14p per day Unit rate: 29.63p per kWh Gas: £268.71 Based on using 2,253kWh Standing charge: 27.22p per day Unit rate: 7.52p per kWh

jimjames

Not missing anything. No fixes are less than the SVR so stick with that unless you want to pay more.

WillPS

Electricity and Gas costs significantly more at wholesale than the price cap from April 1st allows them to charge. As it stands, suppliers lose money on every unit you use on a price capped tariff.

Fixed rates are not subject to the price cap, so they are free to try and set them such that they make money (or lose less at least).

You essentially have to gamble on whether paying more than the cap for the Summer will save you more when the price cap goes up in October (which is likely to be a very very steep rise). Personally, I'd take the fix and do everything I could to avoid using central heating over the Summer (I don't normally use it at all from when it gets warm until October anyway).

Petriix

jimjames said:

Not missing anything. No fixes are less than the SVR so stick with that unless you want to pay more.

Current prices on Octopus Go are cheaper than the April price cap if you use at least 10% of your electricity in the off peak window. That's fixed for 12 months, but only available for EV drivers.