I am rather confused. Think I should grab the offered fixed rate but no-one else I know seems to be.

hermanbloom

Hi all,

I am sure I am missing something. I am not the best at figures but am the best at worrying about keeping a roof over my families head! I will try and post as much details as I can. Currently we are on:

Electric - Unit rate of 27.10p per kWH, standing charge 41.32p a day, future annual consumption apparently 3125 kWh.

Gas - Unit rate 7.12p per kWh, standing charge 25.92p per day, future annual 9705 kWh


DD amount - £137 pm

Bill amounts - £93.46 July, £103.86 June, £118.80 May, £143.78 April, £105.23 March, £140.99 Feb, £148.87 Jan


My wife started as a childminder last year, so especially in the winter she will have heating etc on a lot as she will be in with the kids. 

OVO offering £360 a month for two years, £311 for one year. 


I was silly and didn't make a note when I checked a couple of months ago, but feel like that £360 and £311 was more like £250 and £200? So in my mind it seems like I should grab this before it goes even higher, but asking family/friends everyone seems to be happy to "wait it out".

Yes we are over doubling our payments now, which will bite hard, but I don't know how we afford it if it goes even higher in october, and then continues to rise? She can't take on any more kids, so our income is fixed (though we may take an evening job to try and get more money into the house).

Any advice would be great, and if I have missed some important info please let me know.

Thankyou

NeverendingDMP

Do you know what price per unit they are offering you as opposed to the monthly d debit amount?

hermanbloom

Thanks for the reply, so quick!:

One year, Electric 67.29p/kWh and charge of 49.91p per day. Gas 19.81p/kWh and 27.52 charge per day
Two year - 67.52p/kWh and 49.91p for electric, 19.84 p/kWh and 27.52 per day

pochase

I would advice against it and would not take it myself, even todays predictions are lower than the unit rates. Is that by any chance Outfox the Market?

That said, todays predictions show you never know, so it is a gamble and only you can decide.

Below are the unit rates calculated from todays prediction for reference. 

pochase

hermanbloom said:

Thanks for the reply, so quick!:

One year, Electric 67.29p/kWh and charge of 49.91p per day. Gas 19.81p/kWh and 27.52 charge per day
Two year - 67.52p/kWh and 49.91p for electric, 19.84 p/kWh and 27.52 per day

The unit rates are almost identical, so almost £50 difference in the DD amounts make no sense.

hermanbloom

Thankyou for the info. The plans just seem to be called 1 year fixed (Better Energy) and 2 year fixed (no other name). That table is incredibly useful, really does show that I didn't have all the info to make the right decision. 

hermanbloom

pochase said:

hermanbloom said:

Thanks for the reply, so quick!:

One year, Electric 67.29p/kWh and charge of 49.91p per day. Gas 19.81p/kWh and 27.52 charge per day
Two year - 67.52p/kWh and 49.91p for electric, 19.84 p/kWh and 27.52 per day

The unit rates are almost identical, so almost £50 difference in the DD amounts make no sense.

I guess maybe they are intending to panic me into going for the 2 year, as I thought the prices would continue to go up? In other words, I am paying £50 for (non-existent really) peace of mind that my bills are set for two years?

pochase

You are not paying £50, only the direct debit would be £50 higher. You are paying for what you use and what is on your bill.

hermanbloom

Ah ok. Yes, makes no sense at all then, weird.