Fixed rate tariff or default tariff

Snowdrop06

Hi, I know I'm leaving this a bit late but our fixed rate contract with British Gas is due to finish end of this month (April).  They are offering us a fixed rate tariff until May 2023 costing us £15 more than what we're currently paying.  I'm not too sure what to do though as I keep hearing that we shouldn't fix into tariffs at the minute and go onto their default tariff.  

Could someone please advise what would be the best thing to do?  I know this will be hard with the way things are at the minute but any advice would be appreciated.

Thanks
Lauren

Mstty

It's not about £15 more direct debit it's all about the price per kWh and standing charges.

You need to know your yearly usage and then make a gamble if the new price per kWh is in my opinion Only 15-17% higher than the current price capped rates.

molerat

What are the unit rates and daily charges ?

pochase

Snowdrop06 said:

Hi, I know I'm leaving this a bit late but our fixed rate contract with British Gas is due to finish end of this month (April).  They are offering us a fixed rate tariff until May 2023 costing us £15 more than what we're currently paying.  I'm not too sure what to do though as I keep hearing that we shouldn't fix into tariffs at the minute and go onto their default tariff.  

Could someone please advise what would be the best thing to do?  I know this will be hard with the way things are at the minute but any advice would be appreciated.

Thanks
Lauren

Welcome to the forum Lauren.

If it is really only 15£ more than you are paying I would immediately go for it, but I have serious doubt that this is the case. 

I assume you are talking about the direct debit that they will be collecting?

Fact is that coming from a fixed rate and going onto the SVT your cost will already more than double, all fixed rates that I am aware of are even more expensive, so for you to be paying only 15£ more than you are paying at the moment your current bill should not be more than 5 to 10£ per month.

The direct debit amount they are giving you means nothing, only your usage and the rates are important.

Can you give us the old rates you are paying now, what you have been offered and how much energy you have used the last 12  months? Also good to know would be what region you live in.

BUFF

Hi & welcome, it will help people to help you if you can provide details of the tariff that you have been offered & actual annual usage figures in kWh for electricity/gas.
A monthly figure in £s doesn't help.

Snowdrop06

Hi all

Thanks for the info. I'll see if I can get our usage for the year and also to new costs & the standard costs....I'll be back

Snowdrop06

Okay so I've got the following information
annual gas: 8838 kWh
annual electric: 3680 kWh

Fixed tariff (British Gas) until 31st May 2023
Gas standard unit rate: 10.574p / kWh
Standing charge: 34.069p / day

Electric standard unit rate: 35.2749 / kWh
Standing charge 54.430p / day

I can't seem to find the details of what I will be charged if I don't take up a fixed rate tariff.  I'll keep looking...

TheMilkmansDad

assuming those annual usage figures are correct - the fix will be about £2,555.67 (£212.97pm) the variable I think would be around £1,911.86 (£159.32pm).

I'll let others confirm the accuracy but if my sums area anything near correct I would not be fixing.

Snowdrop06

I now have the rest of the details.
If we don't take up that fixed rate tariff, these will be the costs

Base tariff
Gas standard unit rate: 7.365p / kWh
Standing charge: 27.220p / day

Electric standing unit rate: 29.584 / kWh
Standing charge: 47.581p per day

So just by looking at that really, I can see that we're better off by leaving it to go on the base tariff surely?

Thank you 
Lauren

Olinda99

Yes you will (obviously) be better off now, during the summer months of low usage, but the base tariff is predicted to rise in October at the beginning of the winter, so you need to make a judgement on whether to fix now, pay more over summer but maybe gain over the winter if the base tariff rises a lot.

BUFF

Snowdrop06 said:

So just by looking at that really, I can see that we're better off by leaving it to go on the base tariff surely?

for the moment until the next SVT change, yes. Of course we don''t know what the next SVT change will be in October & therefore which will be better over 12 months especially as for most highest usage is over Winter.
The gas is quite a jump (~44%), the electricity perhaps not so bad (~20%). Don't suppose that you can take them as individual fixes rather than dual fuel?