What's your Next Moves on Gas and Electricity Bills?

bery_451

Ultrasonic said:

The costs on your current tariff won't change if it is fixed as you say. When it ends you will be transferred to the standard variable rate that will be at April's price cap, unless you choose to agree to a new fix. There will almost certainly be another cap increase in October but right now it's basically impossible to have any real confidence how much.

In your position I'd probably do nothing now and reassess at the start of June. There are no obviously 'good' fixes now really, although no harm in you looking just to give you an idea. 

Okay just to clarify the upcoming April and October price caps only apply to standard variable tariffs from energy suppliers? Not new fixed tariffs?

So if there's no good deals on fixed tariffs then that means everybody will be choosing standard variable tariffs right to use the price caps as protection against higher priced fixed tariffs? 

bery_451

pochase said:

As Ultrasonic already said, don't do anything at the moment, you can only be worse off.

There is no possibility of a sudden 1000% increase, either you are on a fixed tariff and the price cannot be increased until the end of the contract, or you are on a capped tariff and increases are limited by the cap and are announced several weeks ahead.

Yes, most likely there will be another increase of the cap in October, but nobody knows by how much, and predictions change every week.

There is not much you can do now to prepare. I myself am reducing my energy consumption where possible.

Luckily I have after a lot of considerations taken out a fixed tariff in February at "only" around 15% over April cap, and at the moment it looks like an excellent choice, but who knows what happens in the near future.

I have also bought shares for the Rippleenergy Kirk Hill wind farm, which is supposed to go online short before my fix runs out, and hopefully will reduce my electricity cost over the next 20 to 25 years.

Okay you investing in this wind farm by buying shares in this company, this company gives a energy bill discount to its shareholders you mean?

The_Fat_Controller

You have been on your fix as long as I have and mine also ends on 30 June, although I am with EDF.

Based on my actual usage over the last 2 years my bills will be going up from £668 to £1516 when I move onto the SV rates, so be prepared for a serious shock.

The best "fix" on offer from EDF is around £2500 (12 months)

OFGEM only put a cap of the SV tariffs.

pochase

bery_451 said:

pochase said:

As Ultrasonic already said, don't do anything at the moment, you can only be worse off.

There is no possibility of a sudden 1000% increase, either you are on a fixed tariff and the price cannot be increased until the end of the contract, or you are on a capped tariff and increases are limited by the cap and are announced several weeks ahead.

Yes, most likely there will be another increase of the cap in October, but nobody knows by how much, and predictions change every week.

There is not much you can do now to prepare. I myself am reducing my energy consumption where possible.

Luckily I have after a lot of considerations taken out a fixed tariff in February at "only" around 15% over April cap, and at the moment it looks like an excellent choice, but who knows what happens in the near future.

I have also bought shares for the Rippleenergy Kirk Hill wind farm, which is supposed to go online short before my fix runs out, and hopefully will reduce my electricity cost over the next 20 to 25 years.

Okay you investing in this wind farm by buying shares in this company, this company gives a energy bill discount to its shareholders you mean?

Yes, I will get at the current calculations for a "normal" energy price 4.3p "discount" for each KWh I bought shares for the wind farm, not the company. Some people here on the forum invested already in the first wind farm that already went online and the savings is 10p plus.

Of course you need to pay upfront quite a bit, 1000£ will get you the discount on 1700KWh electricity, and the break even will with the 4.3p  only after 13 to 14 years, so this is long term strategy to save money. Again if the energy prices stay as high as they are now the break even will be more 4 to 5 years.

bery_451

pochase said:

bery_451 said:

pochase said:

As Ultrasonic already said, don't do anything at the moment, you can only be worse off.

There is no possibility of a sudden 1000% increase, either you are on a fixed tariff and the price cannot be increased until the end of the contract, or you are on a capped tariff and increases are limited by the cap and are announced several weeks ahead.

Yes, most likely there will be another increase of the cap in October, but nobody knows by how much, and predictions change every week.

There is not much you can do now to prepare. I myself am reducing my energy consumption where possible.

Luckily I have after a lot of considerations taken out a fixed tariff in February at "only" around 15% over April cap, and at the moment it looks like an excellent choice, but who knows what happens in the near future.

I have also bought shares for the Rippleenergy Kirk Hill wind farm, which is supposed to go online short before my fix runs out, and hopefully will reduce my electricity cost over the next 20 to 25 years.

Okay you investing in this wind farm by buying shares in this company, this company gives a energy bill discount to its shareholders you mean?

Yes, I will get at the current calculations for a "normal" energy price 4.3p "discount" for each KWh I bought shares for the wind farm, not the company. Some people here on the forum invested already in the first wind farm that already went online and the savings is 10p plus.

Of course you need to pay upfront quite a bit, 1000£ will get you the discount on 1700KWh electricity, and the break even will with the 4.3p  only after 13 to 14 years, so this is long term strategy to save money. Again if the energy prices stay as high as they are now the break even will be more 4 to 5 years.

Is this company or farm listed on the FTSE index and if so how do I find them?

QrizB

bery_451 said:

Is this company or farm listed on the FTSE index and if so how do I find them?

None of what follows is investment advice.

I strongly suspect pochase is referring to Ripple, which is run as a co-operative and so is not listed:
https://rippleenergy.com/

There is a Ripple thread over on the "Green & Ethical" board:
https://forums.moneysavingexpert.com/discussion/6177271/ripple-energy-wind-farm#latest

If you would prefer a FTSE listed company with a more conventional didvidend policy, you could try eg. Greencoat UK Wind:
https://www.hl.co.uk/shares/shares-search-results/g/greencoat-uk-wind-plc-ordinary-shares

Ultrasonic

the_jkl said:

I am very confused by the energy price increases and I wonder if anyone can offer me advice?

I pay Scottish Power £65/month via DD but my fixed deal with them finishes at the end of April. When I am logged into their website they are now offering me 1yr or 2yr fixed deals but paying £225/month. 

The website also tells me my estimated annual cost is just over £1300 (despite my £65/month payments being far less than that?) and the fixed rate they are offering will cost just over £2700.

Any help would be greatly appreciated.

Scotthish Power have some very expensive 'fixed' deals right now that I suspect most here wouldn't touch. Note that you don't have to take one of these 'deals' and that if you don't you will end up on the standard variable tariff that is governed by the ofgem price cap. This is probably the best option for you in your position although nobody can be certain given it will ultimately depend how much the price cap is increased in October.

Note that at least some of Scottish Power's current 'fixed' tariffs includes a clause that lets them end the contracts any time they choose with 42 days notice, so as well as being expensive they don't give the long term certainty you'd normally expect. If you want a fix then my advice would be to look into alternative with other suppliers.

Ultrasonic

bery_451 said:

Okay just to clarify the upcoming April and October price caps only apply to standard variable tariffs from energy suppliers? Not new fixed tariffs?

So if there's no good deals on fixed tariffs then that means everybody will be choosing standard variable tariffs right to use the price caps as protection against higher priced fixed tariffs? 

The answer to the first question is yes.

The answer to the second question is less clear-cut as different people will make different judgements on whether to go for the certainty of a fix or gamble on the SVT working out cheaper even once the currently unknown October price rice is factored in. Most here would probably guess at the latter working out cheaper but nobody knows for certain, and crucially it will depend on what fixed term tariffs are available to the individual and their personal energy usage.

bery_451

QrizB said:

bery_451 said:

Is this company or farm listed on the FTSE index and if so how do I find them?

None of what follows is investment advice.

I strongly suspect pochase is referring to Ripple, which is run as a co-operative and so is not listed:
https://rippleenergy.com/

There is a Ripple thread over on the "Green & Ethical" board:
https://forums.moneysavingexpert.com/discussion/6177271/ripple-energy-wind-farm#latest

If you would prefer a FTSE listed company with a more conventional didvidend policy, you could try eg. Greencoat UK Wind:
https://www.hl.co.uk/shares/shares-search-results/g/greencoat-uk-wind-plc-ordinary-shares

Sorry do you mean Ripple as in XRP in Crypto? If not do you mean ripple is owned by the co-operative supermarket?

Yeah FTSE index is preferred because companies have to comply with strict regulations with the FCA and the London Stock exchange in order to be listed in the FTSE index resulting in lesser risks for the investor correct? 

bery_451

Ultrasonic said:

bery_451 said:

Okay just to clarify the upcoming April and October price caps only apply to standard variable tariffs from energy suppliers? Not new fixed tariffs?

So if there's no good deals on fixed tariffs then that means everybody will be choosing standard variable tariffs right to use the price caps as protection against higher priced fixed tariffs? 

The answer to the first question is yes.

The answer to the second question is less clear-cut as different people will make different judgements on whether to go for the certainty of a fix or gamble on the SVT working out cheaper even once the currently unknown October price rice is factored in. Most here would probably guess at the latter working out cheaper but nobody knows for certain, and crucially it will depend on what fixed term tariffs are available to the individual and their personal energy usage.

Okay what if energy companies start delisting SVT's forcing customers to buy their uncapped more expensive fixed Tariffs? Is this against OFGEM rules?

Will the government Subsidise/Bail out energy companies who supply capped SVT's to consumers like us? If so then will the Government partly own these energy companies?

What's the point of long term fixed deals when you gave that Scottish power example before where they have a hidden clause in their T&C's to exit out of the fixed contract by giving a '42 day' notice to the consumer?

Finally is their a way yo 'Hedge' ourselves against rising energy costs?