British Gas Fixed Deal

Monkey2K

Current Tariff with British Gas:

Standing charge: 43.395p per day

Unit rate: 28.455p per kWh

 

Offered a fix till end May 2023: Exclusive May 23v1

Standing charge: 50.244p per day

Unit rate: 33.283p per kWh

Should I go for this or wait till I see how bad the increase will be in October?

Benny2020

Thats actually not too bad if the increase is going to be more than 20% in october.

locky123

Received fixed offer Exclusive May 23v1 today from BG for electric - Standing charge:55.376p per day, Unit rate:32.186p per kWh with £75 exit fee.

So about 17% increase in unit rate.

Not tempted yet.

F1shyFingers

Benny2020 said:

Thats actually not too bad if the increase is going to be more than 20% in october.

It is if you're going to spend the next 4 and a half months on a considerably more expensive tarriff just to get 7 months on a slightly cheaper tariff if the media are to be believed.

cslogg

The offer I received is Standing Charge 58.47
Unit Price 33.23

Currently on 51.62 and 28.40

  Only have electricity.

Came over from Together Energy.

The DD amount is not stated but it will probably add about £20 per month.

Mstty

@F1shyFingers

It's not quite that simple is it fishy? Most people in the next 4 and a half months might use only 20% of their total energy for the year with the majority being used October onwards. So it's not a simple split like that.

For us this deal taken now would add £60 to our bills til 1st October. (Details of our usage and home in my sig)

Now for the believe the media comment well actually I always follow Cornwall insights as they have been a very reliable predictor of what will happen in the past and they are predicting the rise but maybe not the 40%. This deal comes in lower than they expect the rise to be and due to it only costing £60 extra til October overall it's not a bad deal.

If we hadn't fixed back in March this type of deal would have to be heavily considered.

brewerdave

I've been offered this "deal" this morning by BG for electric only.
Quick spreadsheet calculation between now and May 31st 2023 for my usage (which is pretty even over the whole year for leccy) shows that it is a good deal if the price cap rises ~ 30% in October, (as I think is currently predicted) and even if the cap doesn't increase the following April! 
It breaks even if I build in ~ 21% for both OFGEM increases HOWEVER  all bets are off if OFGEM starts revisiting the cap more often !

pochase

Have you taken a decrease of the CAP into account? Not in October or April, but thereafter? When do you reach a break even if for example the October increase is lower.

I can see you know what you are doing, so just a few ideas for you to play around with.

brewerdave

pochase said:

Have you taken a decrease of the CAP into account? Not in October or April, but thereafter? When do you reach a break even if for example the October increase is lower.

I can see you know what you are doing, so just a few ideas for you to play around with.

I understand what you are saying - but I'm thinking that there will NEVER be a decrease in the Cap (or at least ,not until the Utility Cos. are seen to be making money on retail ops again !!)  As far as I'm concerned ,the key issue is the next cap increase - anything less than 20% makes the fix unattractive but .........

BUFF

Mstty said:

Now for the believe the media comment well actually I always follow Cornwall insights as they have been a very reliable predicted of what will happen in the past and they are predicting the rise but maybe not the 40%. This deal comes in lower that they expect the rise to be and due to it only costing £60 extra til October overall it's not a bad deal.

The last figures from Cornwall Insight that I saw (admittedly a few weeks ago) were forecasting ~20% increase for electricity & ~33% for gas come the October SVT change.

For me, with a fairly stable electricity usage throughout the year, the offer from BG (I only have electricity with BG, gas is with EDF for now) worked out ~17% uplift over the year from now but equated to sticking on SVT for now & a  ~27% uplift come October. I consequently have, so far, not gone for it.
It will, of course, vary for others according to their usage. (e.g. if you have electric heating rather than gas, so a marked increase in electricity use over winter, this may look a lot more tempting).

brewerdave said:

pochase said:

Have you taken a decrease of the CAP into account? Not in October or April, but thereafter? When do you reach a break even if for example the October increase is lower.

I can see you know what you are doing, so just a few ideas for you to play around with.

I understand what you are saying - but I'm thinking that there will NEVER be a decrease in the Cap (or at least ,not until the Utility Cos. are seen to be making money on retail ops again !!)  As far as I'm concerned ,the key issue is the next cap increase - anything less than 20% makes the fix unattractive but .........

The last forecast from Cornwall Insight also forecast a drop in SVT come next April of ~12% iirc & fairly stable for years after that. Of course what actually  happens is susceptible to unexpected events (as we have all learned over the last 2 years) & only hindsight is 20/20 ...

QrizB

brewerdave said:

pochase said:

Have you taken a decrease of the CAP into account? Not in October or April, but thereafter? When do you reach a break even if for example the October increase is lower.

I can see you know what you are doing, so just a few ideas for you to play around with.

I understand what you are saying - but I'm thinking that there will NEVER be a decrease in the Cap

If the next 11 weeks are like the last two (I'm not expecting them to be, but you never know) the October cap will be slightly lower than the current one.