British Gas May 23v2 Deal

chaster

My current deal with British Gas (for Gas only) comes to an end next week and I have been offered a Fixed Rate May 23v2 deal. Having listened to Martin on the radio and looking through the website I am trying to work out whether this is worth undertaking. I have tried to calculate the differences taking into account the October expected increase and from my maths it looks borderline so asking if I should pursue this. I have put what the offer is for information in the hope somebody can help.

QrizB

Several of BG's fixed-rate tariffs are relatively good value at the moment and are listed in this MSE article:

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

I'm not sure if the May deal you've quoted is still on offer; BG seem to have moved on to June and July versions.

chaster

I have until Tuesday to take it up or not. Still trying to fathom whether it is worth it or not.

QrizB

chaster said:

I have until Tuesday to take it up or not. Still trying to fathom whether it is worth it or not.

The variable is currently cheaper than that fix, but if Ofgem's assessment is correct the fix is likely to be cheaper than the variable come October.

If you really want to crunch the numbers, here's how I'd do it.

If you check your old bills you should be able to work out, in rough terms, how much gas & electricity you'll use between now and the end of September. Using those numbers and the tariff details you can calculate how mugh extra the fixed tariff will cost you between now and then.

Ofgem's assessment would suggest an October variable gas tariff of around 11p/kWh, and electricity around 40p/kWh. Using the same old bills you can work out how much energy you'll use from October to next May and price that using the fixed tariff and the likely October rates.

Then you can compare those two numbers and see whether you'll be better off on the fix or the variable, and by how much.

Edit: to illustrate, here are my consumption numbers (we're quite low users).

From June to September we use 855kWh of gas.

• Variable tariff: 855 x 7.280 + 122 days x 27.220 = £95.45
  
• Fixed tariff: 855 x 10.464 + 122 days x 31.329 = £127.69

From October to May we use 6129kWh of gas.

• Variable tariff: 6129 x 11 + 243 days x 27.220 = £740.33
  
• Fixed tariff: 6129 x 10.464 + 243 days x 31.329 = £717.47

Total for the period:

• Variable tariff: £835.78
  
• Fixed tariff: £845.16
  

So it looks as though I would be about £10/yr worse off on the fix, but it would give me a guarantee that I wouldn't be any worse off if variable prices turn out higher than expected.

You should run the numbers with your own consumption valuesn and see what you get.

HollySeeker

I've had a similar email but only for my gas, even though I'm with BG for both electricity and gas...

But I've only had my house since March, and moved in a few weeks ago, so no idea what would work out best for me. Currently on the variable rate, and the rates offered are very similar to yours - just over a 3p increase on standing charge, and kwh

warwickbears

HollySeeker said:

I've had a similar email but only for my gas, even though I'm with BG for both electricity and gas...

But I've only had my house since March, and moved in a few weeks ago, so no idea what would work out best for me. Currently on the variable rate, and the rates offered are very similar to yours - just over a 3p increase on standing charge, and kwh

If you have an online account with BG, worth a look to see if any fixed rate tarrifs on offer