Advise of if I should switch energy providers???

shona3000

HI All
Apologies in advance if this is a duplication.

I am currently with British Gas both Electricity/Gas since April 2021. My fixed rate deal is coming to an end, end of April. I have been trying to educate myself to see what the best options are for me. I have been offered a deal with Octopus Energy. With BG Electricity KW is lower, Standing charge is higher.  BG- Gas-KW is lower Standing charge is higher. Octopus also only offer a 10 months fix rate they no longer offer 1 or 2 year fixed rate deals. BG still offer 12 months. I would like to know what I should do? do I ask BG if they can match the deal? will I be short changed on a 10 month fixed rate rather than 12 in this current energy climate crisis?

Thanks

pochase

The question you should ask here in the first place is if it will make sense at all to fix in the current situation at all.

How do the two offers compare to the SVT capped rate? 

If you give the details for the deals and your energy use for the year we will be better able to give an advice here. 

bristolleedsfan

shona3000 said:

 Octopus also only offer a 10 months fix rate they no longer offer 1 or 2 year fixed rate deals. 

Electricity same rates as 10 Month fix, Gas a bit more expensive, probably better to stay on energy capped SVR variable rate

shona3000

Hi Thanks for your response so in answer to my annual usage as March 31st bill 2022

Gas-£1215.86 KW
Electricity-1564.00 KW

As of 19.04.22- 12 month fixed rate
BG are offering-

Guesstimate Annual usage: Gas- £1,401.29/12=£117 monthly DD
KW-10.553-Standing charge;34.069 per day

Electricity-£705.14, KW-34.930 per day
Standing charge:44.767 per day
Total DD monthly=£176 (subject to usage).

Octopus deal as at 19.04.22. They no longer offer 12 months fixed rate only 10 month.
Electricity-39.21 KW
standing charge-37.65- per hour/or day.

Gas-12.23 KW, Standing charge-27.22 per hour

total monthly cost-£190.00 a month. (according to usage)

based on the above information is it wise I switch tarrifs? before my contract ends on 31st April? my concern based on the information from ML. is that the OFGem price cap only applies to standing charge/KW and not your usage. Hence I fear once I am put onto the standard variable rates my energy bills will just sky rocket and will be unmanageable to trying to plan now. If someone can explain the actual benefit of waiting? as i cannot see it. Thanks. Just trying to educate myself on this Mindfield. It will be good to hear thoughts on deals of BG/Octopus.

Gerry1

Welcome to the forum.  The general view seems to be that offers of fixes should be ignored at the moment: do nothing and you'll go on the capped Standard Variable Tariff (which may not be publicised).

https://www.moneysavingexpert.com/utilities/cheap-gas-and-electricity/#need-2

BTW, you'll find that most companies won't take you on as a new customer unless you've just moved in.  You also need to make sure you're comparing and calculating correctly: usage is measured in kWh not kW, and standing charges are definitely not per hour !

pochase

Unfortunately you are mixing in some lines £ and KWh, especially the energy used for the last 12 months is unclear

Gas-£1215.86 KW
Electricity-1564.00 KW

For gas I assume this is not in £, but is this really KWh or is that units (cubic meters)? The 1400£ quoted for gas use lets me assume it is M3.

Of the two offers Octopus is clearly much more expensive, the standing charge for the 10 months would be £42.60 cheaper, but the cost for the energy in the 10 months would 126£ higher. Add to this the fact that it is only a 10 months fix and Octopus is out.

Electricity looks not that bad, but the new SVT from October would need to be in the region of 40p, a 40% increase for October, which is higher than the estimations.

Gas is even worse, gas price will need to increase by over 45% for you to have an advantage. 

Nobody knows what is going to happen, but I would not gamble that the price increase is again over 40%. But nobody here will tell you what to do.

MalMonroe

I'm with Octopus right now and want to switch but from the research I've been doing it is clear that there's no company worth switching to at the moment so I'm stuck with them.

In the UK we're all really struggling to find the best deal on energy. Sadly, there isn't one.

I agree with what pochase above says, nobody here either can or will tell you what to do.

shona3000

HI All 
thanks for the comments and advise. Apologies it was obviously a typo re: KW/KWH and yes standing charges were per day however the Octopus rep did say per second which i Queried. In any event it would appear we are all in a waiting game, to fix or not to fix or take a chance and put onto the standard Variable rate. It is unclear if this will mean energy prices will soar to a degree it becomes unmanageable only time will time. It is defo food for thought and I will ponder over my options before April 31st. This is my theory of the current situation. All the Energy companies have had conversations with each other, it is their time to shine to rake in the profits. They have all formed a Cartel and making it impossible to switch or get any remotely good deals. Nov/Dec 2022 prices could drop, however by that time Energy companies have made huge profits out of perhaps an unavoidable situation. I will keep my eye out on this forum for more tips/advise/information.  

shona3000

Just on the Octopus interestingly enough when I spoke to the rep today, she knew i was with BG, and she indicated that I could switch and informed of the process, from what she says it seems you are able to switch. However i also take on board that their offer is higher than BG if you compare standing charges and length of fixed rate time. Really important we look closely at any deals and see the fine print. What a Mindfield!

jimjames

shona3000 said:

is that the OFGem price cap only applies to standing charge/KW and not your usage. Hence I fear once I am put onto the standard variable rates my energy bills will just sky rocket and will be unmanageable to trying to plan now. 

I think you are misunderstanding a fixed rate tariff from this comment. It makes no difference if you are on variable rate or fixed rate you still have to pay for what you use. The price cap does only apply to the SC/kWh rates not usage but fixed rates do too. The only difference is that you may have an increase in variable rates if the cap changes, fixed rate is a guaranteed price per kWh for the length of contract - but you still will pay more if you use more.

It would be like Shell offering a fixed rate of £1.75 for petrol for 12 months, if you drive 2000 miles you will pay less than someone who drives 10,000 but the price is still fixed.

Ultrasonic

MalMonroe said:

I'm with Octopus right now and want to switch but from the research I've been doing it is clear that there's no company worth switching to at the moment so I'm stuck with them.

In the UK we're all really struggling to find the best deal on energy. Sadly, there isn't one.

I agree with what pochase above says, nobody here either can or will tell you what to do.

Why do you say you want to switch away from Octopus?