Time to fix my energy bill? - British Gas Misleading customers?

jefferson89

Hello,

 

I am an avid user of mse / its information.  I have just carried out a check to see whether it is better for me to switch to a fixed tariff with my current supplier.  I was moved to British gas when PFP energy went bust.

 

On my British Gas account (via the app) they are offering the 'Exclusive Jul 23v1' tariff at a yearly cost of £1706.44. They are using assumed annual consumptions as follows: Gas at 12,000kWh / £823 yearly.  Electricity at 2,900kWh / £883.44 yearly = £1706.44 total yearly.

 

I ran these same Gas and Electricity figures (kWh) through the cheap energy club tool to see what that would equate to on British Gas' Standard Variable rate and that brough back £1,967 yearly.  This would be a decrease of 12% (approx.) and seemed a great offer.  To be sure I ran the new British gas tariff 'Exclusive Jul 23v1' through cheap energy club tool, using the same Gas 12,000 kwh / Electricity 2,900 kwh but it brought back the cost being £2,587 a year.  This would make it around a 34% increase on the BG Stand variable rate.

 

How are British Gas able to forecast these numbers so wrong to customers? Fixing them into contracts that do not match up, or has something gone wrong with my numbers / cheap energy club tool?

 

Thank you, any advice would be appreciated.

 

[Deleted User]

This tariff was discussed in another thread

https://forums.moneysavingexpert.com/discussion/6360406/exclusive-jul-23v1-fixed-british-gas

The first reply confirms the CEC tool numbers

franconormand79

You’ve got to remember the price cap will increase your SVR by 42% in October so a 34% increase seems a better option. 

The_Fat_Controller

The fix will always be more expensive than the SV for same consumption.

Are you sure what you are seeing in the app is not a personalised estimate using your consumption figures over a year rather than the generic "average user" figures of 2900E/12000G ?

jefferson89

The_Fat_Controller said:

The fix will always be more expensive than the SV for same consumption.

Are you sure what you are seeing in the app is not a personalised estimate using your consumption figures over a year rather than the generic "average user" figures of 2900E/12000G ?

See i did think this, are they basing this off my current usage with them, but it is hard to tell, once you scroll to the bottom it has a section called "illustrative gas cost for this tariff" in in that it has the assumed annual consumption 12,000kwh and the yearly estimated amount cost of £823, then the same for electricity 2,9000kwh and £883.44. which equals the total £1,704 amount.  I am unsure if it is just poor app layout or if it is based of my actual usage?  ive attached some screen shots to see if others agree?............................

jefferson89

franconormand79 said:

You’ve got to remember the price cap will increase your SVR by 42% in October so a 34% increase seems a better option. 

Yes i have read this is true, but from readings mse / martins thread toda .  It seems that anything over 30% is high, so staying put on SV for now would seem the better choice and then fixing closer to october.  Whilst yes, this tariff maybe gone then, and an even worse one nearer october, it could also go the other way, no?

QrizB

jefferson89 said:

 I am unsure if it is just poor app layout or if it is based of my actual usage?  ive attached some screen shots to see if others agree?............................

I agree that there's something not right in those screenshots.

jefferson89

QrizB said:

jefferson89 said:

 I am unsure if it is just poor app layout or if it is based of my actual usage?  ive attached some screen shots to see if others agree?............................

I agree that there's something not right in those screenshots.

That's what I thought, sethimg doesn't seem right. I've attached screen shots of the top end view of the tariff but at the top it does state "personal projection", so I am confused to whether this tariff is forecasting for my actual readings or using 'average typical' usage as with the first I am 12% over the SV rate which seems pretty good but the other I am 34% which going of mse / Martin's write anything of 30% you should leave alone. 

Can anyone tell me how do you work out how much your yearly amount shouod be for each fuel, is it simply the unit rate X 365 (days).

Thanks 

sol2017

From what I can see, the monthly payment displayed is personal projection based on usage data. I did a spreadsheet and it roughly matches my calculations. (I say roughly because my monthly calc is few pounds more than BG numbers)

Compared to the current SVR, May23v2 fix works out roughly a 41% increase, July fix slightly less. 

[Deleted User]

jefferson89 said:

Can anyone tell me how do you work out how much your yearly amount shouod be for each fuel, is it simply the unit rate X 365 (days).

Hi,

no, that's wrong.

Electricity: actual units used x unit rate,

Gas: actual units used x 11.2 x unit rate,

Standing charge: daily rate x 365 for each fuel,

then add 5% vat if not already included in rates.

The_Fat_Controller

People, DO NOT get confused by the 11.2 multiplier in @frugalmacdugal 's post above.

That only applies if you are using the numbers directly from your meter.

Comparisons on the energy company websites have already done the calculation from volume to kWh for you.