British Gas Loyalty Jun 23 v2 Tariff

JeffA

Currently I’m with British Gas on their Peoples Tariff, coming to an end on 30th June 2022

 I’m am being offered three scenarios

1. Do nothing and move to a standard variable tariff – Estimated annual cost £2,437
2. Switch to their Loyalty June 23v2 tariff – Estimated annual cost £3,053
3. Stay on standard variable and switch to direct debit. – Estimated annual cost £2,290

 There is no information on Switching to their Loyalty June 23v2 tariff AND paying by direct debit; would combining the DD with the Loyalty tariff produce a 4th price estimate.

 I note on the MSE website table Fixed energy tariffs that COULD be worth considering MSE are referencing Loyalty June 23v1.  

I cannot post the links as I'm a newbie - information is on the BG website.  V2 is slightly less expensive than V1 as follows:  Gas is 0.167p/kWh less & 0.686p/day standing charge less.  Electricity is 0.69p/kWh less and 0.685 less for the standing charge.  



Any advice?

pochase

You are answering your question yourself/

If the more expensive V1 is listed as to be considered of course the cheaper V2 is an even better deal.

Otherwise you don't give any information to work from like what is your annual usage and what are the unit rates.

You should always use direct debit, either fixed or variable everything else is to expensive. Paying by DD is possible for each tariff.

JEM55

Hi,  We are also being offered version 2 of the BG loyalty June 23 deal - although I am confused as to whether it is a "deal" at all??  I am not a gambling person and I feel somewhat angry that we are basically being told to all become gamblers for this extremely important, possibly "way of life changing" decision, in terms of cost of living expenses.  We fall into the higher energy user end (yes, we have been through all the advised energy saving tips) and BG have advised that our current tariff (The Peoples one as they went under and we were automatically transferred to BG with no input),  is this -

The Peoples Tariff

£3117.41* your annual cost Based on paying by Direct Debit Your fixed price tariff is ending on 30th June 2022** Click for current terms. Gas: £1563.60 Standing charge:  27.220p per day Unit rate: 7.480p per kWh Electricity: £1553.81 Standing charge:  43.395p per day Unit rate:  28.455p per kWh

We are offered to either do nothing and stay with this on their Standard Variable and supposedly take the risk (gamble) that the price cap won't rise as much as predicted in October and then again in January 23  or take this :- 

Loyalty Jun 23v2

£4055.94* Estimated annual cost based on your 19578kWh gas usage and 4904kWh electricity usage per year Based on paying by Direct Debit This tariff is £938.53 more than the default tariff - but we’ll keep your rates fixed until 30th June 2023 Fixed price energy until 30th June 2023** Exit fees of £75.00 until 13th May 2023 Click to read tariff terms Gas: £2164.21 Standing charge:  29.959p per day Unit rate: 10.496p per kWh Electricity: £1891.73 Standing charge:  48.875p per day Unit rate:  34.938p per kWh

I am just asking if anyone thinks this is a good deal ("risk/gamble") ? even though if we take it we will have to start paying the higher costs from July 1st which seems a bit rough when we are all currently struggling with everything else going up.   We have until June 16th to decide.  Any comments / advice would be much appreciated.

Dear JeffA - apologies to hitch a lift on the back of your post but as we have been offered more or less the same thing I thought best to keep it as a single post.

Mstty

@JEM55

So when any of the energy companies went bust no one had any input as to what they were transferred in, it was always the capped rate standard variable tariff.

As for the deal on offer the electricity rate looks decent but the gas rate may only end up half a pence below the October rise. The good news is you shouldn't be using much gas between now and October 1st except hot water.

The only benefit is if you don't like it come October 1st BG will allow you to switch to another of their tariffs without exit fees. Not that I personally believe the rises aren't real but that gives some people some comfort.

Out of interest what energy savings have you made and how big is your house as a family you could do more? That will lessen the blow.

pochase

Welcome to the forum @JEM55

Here are the calculations for current SVT, offered fix and predicted new SVT.



The October SVT is based on the latest prediction from Cornwall Insights on 01/06/2022 so it is just that a prediction. The increase for gas would be 60%, electricity 45% and no increase to the standing charges.

The fixed tariff is 30% more expensive for you, so well in the range of the recommended tariffs. The new cap would be 14% more expensive if the prediction proves to be correct. Another small increase (2%) is expected currently for January.

You need to factor in that the savings are partly cancelled out by the higher cost for July to September.  

pochase

@Mstty
On what information is your prediction of 11p for gas for the October SVT based on?

Mstty

@pochase

The £2800 Ofgem cap announcement. Then the split between gas and elec price rise last rise Apr '22 as a baseline as well as the documents release by Ofgem for how they calculated previous price caps.

I can see from your posts you are an advocate of the 46% Cornwall insights rise but personally I think stick with the official Ofgem announcement of 42% for now would be best given CI's track record on early predictions.

Cornwall insights rarely get it right this early on as has been pointed out to me when I was touting Cornwall Insights before. Their track record is poor until the month before the official announcements,  so let's wait for their July "leak"😜

I would suggest when you do your spreadsheets for people you let them know you are working of the nearly £2900 predicted cap by Cornwall Insights and not the £2800 Ofgem expected cap rate (or less if they are to be believed that they will be reducing the standing charge as well come October)

Most people don't know who CI are so I think it muddies the water if not implicitly implied.

pochase

The big difference is that Cornwall gives information about the split between gas and electricity, the Ofgem one does not.

And I am letting them know from what prediction I am working, while you don't do it.

As for the deal on offer the electricity rate looks decent but the gas rate may only end up half a pence below the October rise.

You did not answer the question how you calculate the 11p? I get to the 11.8p by taking the Cornwall gas figure, deduct the standing charge and divide by 12000.

Also if the standing charge is reduced it does not mean it will reduce the cap, the standing charge would be redistributed to the rates, so total cap will stay the same. The standing charge will not just go away, that is not what Ofgem is saying at all.

BTW, when Ofgem did the £2800 cap announcement Cornwall had the same, they adjusted again a week later.

JEM55

Pochase and Mstty - thank you both for your explanations  - I didn't mean to start an argument  .  I am still no further forward as to whether I should take the deal or not.  I know you can't decide for me but if it were either of you - would you? 
Mstty - trying to save electricity by switching everything off at the mains, making sure freezers are defrosted, turning lights off - although I do that anyway because I can still hear my Dad and the Blackpool illuminations analogy every time I walk out of a room!  We have got a smart meter so I'm going to the thing were you switch every thing off and then turn it back on one by one to see what uses the most.  For the Gas at the moment we only have the hot water on in the morning for 2 hours - gas hob only used occasionally for cooking - that's all.  

Mstty

JEM55 said:

Pochase and Mstty - thank you both for your explanations  - I didn't mean to start an argument  .  I am still no further forward as to whether I should take the deal or not.  I know you can't decide for me but if it were either of you - would you? 
Mstty - trying to save electricity by switching everything off at the mains, making sure freezers are defrosted, turning lights off - although I do that anyway because I can still hear my Dad and the Blackpool illuminations analogy every time I walk out of a room!  We have got a smart meter so I'm going to the thing were you switch every thing off and then turn it back on one by one to see what uses the most.  For the Gas at the moment we only have the hot water on in the morning for 2 hours - gas hob only used occasionally for cooking - that's all.  

Jem this isn't an argument just two people differing on their source of the price cap and calculation or projected pence per kwh. I suspect you only know about the estimated £2800 cap come October not other companies that estimate it higher😳 I'm just a stickler for letting people know what they are being provided with and you were provided with figures for the £2900 estimated price cap for another source you may not know and it could make a difference to your decision. It's up to pochase as to whether he updates his estimates with that caveat or not.

Sounds like you are doing the right things for energy saving. We use the bright app as it has historical information so we can compare with last year and the energy savings we make so might be worth checking it out if you have a smart meter.

QrizB

Hi JEM55.

JEM55 said:

I am not a gambling person and I feel somewhat angry that we are basically being told to all become gamblers for this extremely important, possibly "way of life changing" decision, in terms of cost of living expenses.

This is, in effect, the same decision you took when you chose your previous tariff with People's Energy. The difference this time is that the costs are 2-3x what they were then.

I am just asking if anyone thinks this is a good deal ("risk/gamble") ? even though if we take it we will have to start paying the higher costs from July 1st which seems a bit rough when we are all currently struggling with everything else going up.   We have until June 16th to decide.  Any comments / advice would be much appreciated.

The question for you is:

• Could you afford the variable rate if it worked out as being more expensive than the fix?
  

If you're fairly relaxed about the idea of potentially paying £350-£400 a month on the variable rate, if it ends up that high, then you might want to take a risk on it. If however that sort of payment would cause you serious problems, the fixed rate will mean you shouldn't need to pay more than £340/month for the next year.

Trying to save electricity by switching everything off at the mains, making sure freezers are defrosted, turning lights off - although I do that anyway because I can still hear my Dad and the Blackpool illuminations analogy every time I walk out of a room!  We have got a smart meter so I'm going to the thing were you switch every thing off and then turn it back on one by one to see what uses the most.  For the Gas at the moment we only have the hot water on in the morning for 2 hours - gas hob only used occasionally for cooking - that's all.  

For someone who has done all that, I'm surprised by how high your estimated use still is. Are you an unusually large household?