More Advice needed

cityfan247

I am with Scottish Power. On their dual fuel fixed tariff (to 31 August 2022). Currently pay £141.00 per month by DD.

When i click at what my next tariff options are the 1 and 2 yr fixed rate jump to £522.63 per month !!!!  That's almost £6300 for the year !  I fully appreciate the steep  rise in prices we are facing and the substantial increase in the fuel cap but surely that cant be right can it? That's a 400% increase. 

Thanks

pochase

You also have the option to just do nothing and you will automatically change to the "capped" standard variable rate. This is at  the moment the best option for you.

What you are seeing are new fixed rates and they are very expensive. Most likely they will not even be available when you get near the end  of your contract. Maybe they will be cheaper, maybe mor expensive. I doubt that they would even allow you to chose a tariff now already and only start it in 5 months.

But be prepared for a heavy increase coming of you fix, that can be easily 100 to 150% increase, plus the next increase coming 30 days later.

QrizB

cityfan247 said:

I fully appreciate the steep  rise in prices we are facing and the substantial increase in the fuel cap but surely that cant be right can it? That's a 400% increase.

Yes, that's probably right.

Given that you took your current fix almost two years ago, it's likely that your existing rates are somewhere between 1/2 and 1/3 the April capped variable rates. Scottish Power's fixed rates are all higher than the current cap, so an increase to 4x your existing bill is quite possible.

Even on the capped variable rate, you can expect your tariff to rise by 2x to 3x when your fix expires in September and a further increase in October.

cityfan247

Thank you for the responses. Obviously I wont do anything until the fixed rate is due to end at the end of August by which time things may be a little different.

May be a case of going onto the capped rate then. I am certainly bracing myself for my bills to at least double or more. But the prospect of over £520 per month has made me panic a bit.

molerat

Sounds about right.  This time last year I was paying £82 pm  Now £210 pm on SVR with the cheapest fix I can find at £297 pm.  Other fixes then jump to £455 pm.

Mstty

Do you know your kWh usage for energy for the last year?

That way you can brace yourself and maybe put some pennies aside.