Tariff help!

kerryxoxo

Hello!

We moved house in Nov 2021. Previous owner was with Scottish Power and, in our naivety, thought it would be best/easier to continue with them.. oh, how we were wrong!

Long story short.. our household is all electric with storage heaters. We have had a complaint ongoing for sometime  for many reason, one of which is due to some disagreement between tariffs. They have now provided the original fixed rate offer we recieved and the standard tariff of then and now. I think we're best staying fixed - other half thinks standard (as that's what will be impacted by price cap - not fixed??). Please help, I'm at the end of my tether with this!

 Electricity Standard Variable tariff price Including VAT until 31.03.2022

Pay monthly by direct debit
Daily standing charge: 24.95 pence per day
All day unit: 29.211 pence per unit
Night / Off peak unit: 13.909 pence per unit
Control unit: 12.624 pence per unit

Pay cash, cheque or postal order
Daily standing charge: 29.56 pence per day
All day unit: 26.710 pence per unit
Night / Off peak unit: 13.794 pence per unit
Control unit: 17.364 pence per unit


Electricity price Including VAT effective from 01.04.2022 (after price rise)

Pay monthly by direct debit or standing order
Daily standing charge: 49.73 pence per day
All day unit: 39.980 pence per unit
Night / Off peak unit: 19.037 pence per unit
Control unit: 17.278 pence per unit

Pay cash, cheque or postal order
Daily standing charge: 55.77 pence per day
All day unit: 36.644 pence per unit
Night / Off peak unit: 18.923 pence per unit
Control unit: 23.821 pence per unit


HBC Green Fixed February 2024 CM1 OL Tariff – including VAT

Pay monthly by direct debit or standing order
Daily standing charge: 26.59 pence per day
All day unit: 34.514 pence per unit
Night / Off peak unit: 19.212 pence per unit
Control unit: 17.927 pence per unit

Pay cash, cheque or postal order
Daily standing charge: 26.59 pence per day
All day unit: 36.209 pence per unit
Night / Off peak unit: 20.908 pence per unit
Control unit: 19.622 pence per unit

Any advice/help is greatly appreciated, thank you 😊

QrizB

Short version - I'd take the fix.

Long version - tell us your estimated annual consumption values for each of the three rates and someone (possibly me) will work out the annual cost on each of those options, so you can compare.

pochase

I understand your post that you can choose either on the fixed rate from start in November, or on the SVT, first up to 31st of March at old CAP, thereafter at new CAP rate. Is that correct?

kerryxoxo

QrizB said:

Short version - I'd take the fix.

Long version - tell us your estimated annual consumption values for each of the three rates and someone (possibly me) will work out the annual cost on each of those options, so you can compare.

Short response - thank you. I've already linked OH and taken great pleasure in being (sort of) right 😆.

Okay, the estimated usage from SP is "12,486kw per year". I'm dismissive as not entirely sure what they based this on as, at this point, they claimed never to have recieved a meter reading from me (they had..several...from many different modes!).

So, will dismiss them and try and work out an average actual use based on meter readings?

Actual usage between 16/02 - 12/04:
Rate 1 (day):  31768, 32069 = 301
Rate 2 (night): 19029, 19262 = 233
Rate 3 (control) 61537, 62491 = 954

Average weekly usage:
Rate 1:  37.625
Rate 2: 29.125
Rate 3:  119.25

Have I worked this out right or do I now look like a total duck 😆..

Am I right in saying those fixed rates won't change over the course of the tariff? So if the price plummets during then, we're stumped (or can cough up the exit fee) but if they go up we're somewhat protected?

Thank you very very much .

kerryxoxo

pochase said:

I understand your post that you can choose either on the fixed rate from start in November, or on the SVT, first up to 31st of March at old CAP, thereafter at new CAP rate. Is that correct?

Yes, that' correct. The fixed rate was offered in Nov '21 and they seem like they're committing to it (it is what I agreed to after all!) so likely lower that what would be offered fixed now. SP have also offered to backdate bill to DD Rate  as this not being progressed was an error on their side.

Mstty

Well ideally you need figures across the year to use your method.

A wholes year's usage would be the best as you generally don't use as much energy this time of year as you do in winter.

pochase

Are you sure you did not get some of the rates mixed up between direct debit and cash/cheque payments? It would be very unusual that direct debit payment is more expensive than cash payment. Fix rate seems to be correct, but the two SVT look strange. Especially strange is that the control rate is cheaper in one set and the other two rates or cheaper in the other set.

You would need your meter readings for start reading in November and on the 31st of March so you can see by how much you are overpaying to have the cheaper fixed rate from first of April.

After first of April it looks quite clear that you will be saving money already now, only control unit rate is slightly more expensive.

I assume this is a three rate tariff that is typical for Scotland, but is going to be phased out?

kerryxoxo

Mstty said:

Well ideally you need figures across the year to use your method.

A wholes year's usage would be the best as you generally don't use as much energy this time of year as you do in winter.

We only moved in Nov '21 so could work it based on the 6 months we've been here. Although..at one point, we had all storage heaters on, blissfully unaware! Now we're lucky to put one on...we wait on the temp dropping and layers of clothes being ineffective 😆. Different system is on the list of things to do, as they are very very old storage heaters  but new windows and doors first! 

From 17/11/21 - 12/04/22 (146 days)
Rate 1 - 31713, 32069 = 356
Rate 2 - 17952, 19262 = 1310
Rate 3 - 59127, 62491 = 3364

Daily/Weekly average:
Rate 1 - 2.44/17.06
Rate 2 - 8.97/62.80
Rate 3 - 23.04/161.29

kerryxoxo

Sorry @pochase, my reply keeps disappearing to spam so apologies if you end up with three at once!

You could be right. I dont know the DD rates for Standard as have only ever recieved the non-DD options via letter (and these are correct). I've taken the rates above directly from the SP advisor handling the complaint.

Yes, we're Scotland and yes three rates. New to me as I'm sure our previous property was one for electricity & one for gas. For too long I thought rate 1 was day charge per kW, rate 2 was night and 3rd rate was total usage. Just glad I had wrote it all down!

QrizB

kerryxoxo said:

Am I right in saying those fixed rates won't change over the course of the tariff? So if the price plummets during then, we're stumped (or can cough up the exit fee) but if they go up we're somewhat protected?

Yes, the fixed rates won't change until the tariff ends in Feb 2024.

The variable rates rose in April and are widely-expected to rise again in October. After October they will be revised again in April 2023 and October 2023; what the changes in 2023 will be is anyone's guess.

For the 16/02 to 12/04 period you've provided info on, DD costs would be:

• Old variable - £254.49
• New variable - £356.88
  
• Fix - £334.30

Both the new variable and the fix are more expensive than the old variable (that you've paid for the past six months, one winter's worth) but the fix is cheaper than the current variable and is highly likely to be cheaper than the October variable too.

You'll be using less of the "control" rate over the next five months (since it's meant for heating, and it's warmer now) so the higher control price won't be an issue before October - when, if the variable rises, the control rate will end up more expensive anyway.

The only downside is that you'll be re-billed at a higher price for the electricity you've used from moving in until the end of March. I can't say how much this will be but if it's £40/month (like in the period you've provided meter readings for) that's £200 extra.

All this assumes you're not planning to move house again in the next 18 months!

pochase

As @QrizB said, you will have to pay the higher rate for November to March, but after that you will be for 22 months cheaper than even the current SVT, and October will be even higher. 

Everybody here hesitates to give advise, as nobody knows what the future will bring, but I would happily stick with the fixed rate for myself.