Fixed price ‘offer’

Edd_Yeo

Hi, brand new to this. So hopefully someone can help me…

I have been offered a ‘special’ rate by British Gas as an existing customer. But it seems to obvious to me that it will leave me worse off

the offer is fixed price of £3087, but on standard variable rate my projection is £2300. I understand it’s all estimates etc, but the gap is so big that it surely leaves me wriggle room for when rates rise…

have I got that right or am I missing something? 

Gerry1

Welcome to the forum.

You'll get more replies if you post in Energy: this backwater is the LPG, Heating Oil, Solid & Other Fuels forum.

Don't worry, it's a very common mistake because the index is badly laid out.  You're not the first and you won't be the last.

BTW, think annual kWh from actual meter readings, not just ££.

MSE_Laura_F

I've moved this to the Energy board. Thanks, MSE Laura F

pochase

Edd_Yeo said:

Hi, brand new to this. So hopefully someone can help me…

I have been offered a ‘special’ rate by British Gas as an existing customer. But it seems to obvious to me that it will leave me worse off

the offer is fixed price of £3087, but on standard variable rate my projection is £2300. I understand it’s all estimates etc, but the gap is so big that it surely leaves me wriggle room for when rates rise…

have I got that right or am I missing something? 

What you are missing is that the latest predictions for October are an increase of 60% for gas unit rates and 45% for electricity unit rates - 11.8p for gas and almost 42p for electricity per KWh.

As @Gerry1 said important are prices per KWh, standing charges and you annual usage, but the fix does not sound great, but I would not bet that you pay less and the next SVT.

Edd_Yeo

Thank you. I’ve checked and on the fixed offer it’s 10.482p per kWh gas and 38.925 per kWh on electric

Still way higher than standard variable for the next 4 months

i know it secures against future rises but when comparing the 2 seems silly to fix

Alnat1

You will be probably be using less gas and electric during summer, no heating, lights on less etc.

The fixes are likely to go up in price as we get nearer Oct so you have to weigh up whether paying a little bit more over summer might be worth it by savings made on the big winter bills.

It's a gamble whichever way you go.

Edd_Yeo

Yeah seems to be a lottery all round, no silver bullet to fix it