Energy price help

Househelp

I’m really confused and appreciate some help please. 

Currently on the variable rate with octopus. 

Been offered the following fixed rate; 
electric, standing 51.36 unit 67.34
gas, standing 27.22 unit 18.95 

based on my last months bill that was £98 (electric 250kwh, gas 100kwh) this would make
my bill £210 but they are quoting £280 I’m in credit and really can’t understand the difference or is my maths just terrible? 

TheMilkmansDad

Is that on pay monthly or a monthly DD?

If you pay a flat amount each month you need to look at your annual usage for the last year (not month) and divide that by 12.

pochase

As above. 

You will agree that you will use more than 100KWh gas once you start to heat? So your direct debit will be based on your average use per month over a 12 month period, not on what you used in low usage summer month.

The fixed offered does not look very exiting btw, prices need to go up much further for it to be a good fix. Gas and electricity rates are worse than the current worst case scenario for the highest price before it starts to come down.

Househelp

TheMilkmansDad said:

Is that on pay monthly or a monthly DD?

If you pay a flat amount each month you need to look at your annual usage for the last year (not month) and divide that by 12.

It’s monthly DD, with a qtrly bill. Annoyingly I can’t easily see annual usage without going through every bill and added it up. pochase said:

As above. 

You will agree that you will use more than 100KWh gas once you start to heat? So your direct debit will be based on your average use per month over a 12 month period, not on what you used in low usage summer month.

The fixed offered does not look very exiting btw, prices need to go up much further for it to be a good fix. Gas and electricity rates are worse than the current worst case scenario for the highest price before it starts to come down.

Would you recommend I stay on the variable? 

pochase

Nobody knows what is going to happen.

Latest predictions from Cornwall Insights are here. At least one other company has higher predictions.



You will have to do your own numbers and gamble on what you believe is best for you.

We can only give you the information and help with calculations. The decision is up to you.

As I already wrote, what you have been offered is worse than the highest figures in above SVT prediction, you need to make up your mind if you believe the above is correct, to high or to low.

EssexHebridean

Do you keep records of your meter readings? If so the easiest way of finding annual use is to go back a year and find a reading, and then read the meters again today. The difference between the figures gives you your use (conversation will be needed for the gas units) Failing that you could do the same using bills - although there may be estimated readings there, of course. 

[Deleted User]

Househelp said:

It’s monthly DD, with a qtrly bill. Annoyingly I can’t easily see annual usage without going through every bill and added it up.

Hi,

you don't need to do that, just use the readings from your latest bill and readings from a year back, and subtract.

pochase

Annual use was fine until now. But to with the new 3 month cap and very different prices you need to know your usage for the quarter to make anything more sophisticated than an educated guess like I use more in winter than in summer.

The new calculation if a fixed tariff works is what will I save lose up to October, and than for each 3 months period. Add it up and you know more.

Unfortunately 90% will not have this data and will have to rely on guesses

Househelp

So I think I’m getting somewhere, I’ve found my winter and summer usage. Based on the fixed rate I’ve been offered with 6 months summer and 6 winter (over egged I know but easiest way) gives me annual cost of £3284

If I always stay on the variable which is always the price cap, which is the rates above as predicted I have a rough annual cost of £2795. 

Have I missed anything obvious? I’ve used the prices listed above, changed the rate every 3 month along with the relevant usage for that period
 (appreciate this is purely guess work but all we have to go on) 

thanks so much for everyone’s help I really appreciate it

xzibit

One thing to take into consideration is that the predictions are just that! They could treble between now and when they are introduced. They could also drop. Nobody knows. 

For example, in June I was presented with a fixed offer. It seemed too high based on the predictions. Now, oh how I wish I could of got that fixed offer, I would save over £1,000 a year based on the current predictions. 

pochase

Househelp said:

So I think I’m getting somewhere, I’ve found my winter and summer usage. Based on the fixed rate I’ve been offered with 6 months summer and 6 winter (over egged I know but easiest way) gives me annual cost of £3284

If I always stay on the variable which is always the price cap, which is the rates above as predicted I have a rough annual cost of £2795. 

Have I missed anything obvious? I’ve used the prices listed above, changed the rate every 3 month along with the relevant usage for that period
 (appreciate this is purely guess work but all we have to go on) 

thanks so much for everyone’s help I really appreciate it

Sounds right to me as you will lose in every single quarter if the predictions are correct. The highest SVT rates are lower than the fixed tariff.