BG To Fix or Do Nothing - What do I need to do to check?

Snow_Gem

Hi,

We’re currently with British Gas on the Standard Variable Tariff and just received an email from BG encouraging us onto their July23v2 Fixed Tariff.  I know Martin mentions in the today’s article about checking if it’s worth fixing now.  But I don’t know what figures I need to look at or sums I need to do to work this out.

If any one could set out in layman’s terms what I need to do with which figures (or guide me to a page on MSE I’ve perhaps missed that’s explains how), I’d be grateful thanks.  I’m tempted to stick with doing nothing as the best option currently, but don’t want to later regret not checking.

Thanks, any help appreciated!

pochase

What is your energy use over the last 12 months in KWh for gas and electricity?

What are your rates and standing charges on SVT, and what rates and standing charges have you been offered?

Somebody will do the calculations for you.

It would be good if you have an idea how much energy you will use in the next three months, as for this you will pay already the higher unit rates from the fix, so this goes against potential savings of the fixed tariff vs the predicted new SVT from October.

Snow_Gem

Thanks for your reply. As suggested I’ve got the following figures…

From our BG bills from 2nd May 2021 - 2nd May 2022 (smart meter) :

Gas: 7047.67 kWh

Electricity: 4216 kWh

Current SVT :

Gas: 7.671p per kWh Unit rate / 32.032p per day Standing charge

Elec: 29.100p per kWh Unit rate / 50.535p per day Standing charge

July 23v2 Fixed Tariff BG are offering :

Gas: 10.833p per kWh Unit rate / 35.457p per day Standing charge

Elec: 37.911p per kWh Unit rate / 56.699p per day Standing charge

We used 244 kWh of Gas over July/Aug/Sep 2021.  And 993 kWh of Electric over July/Aug/Sep 2021.

pochase

Here you go



For July to September you will pay more


So it will take you almost 4.5 months before you start saving on the fixed tariff.

GTare14

Prices are not expected to drop until April next year. That's around 9 months away, so would it be wise for the to fix now given you mention it's 4 months before they will see a saving?

pochase

That is the gamble. 

The £104 they will pay more is a fix if the usage data is correct. Nobody knows what the new cap will really be, if it lower than what my calculations are based on, it will take even longer until there is a savings, if there is any at all. But of course the cap can also be higher than the current predictions if anything big happens for example with Russia.

Looks to me at the moment that the potential savings is very low, most likely around £100. On the other side it gives security for the next 12 months, and it is very unlikely that there will be a (big) loss because the energy prices decrease a lot.

Snow_Gem

Thanks so much for doing this pochase!

Not sure what to do at the moment.  Like you said, it's very much a gamble...