Gas increased 243%, how can this be correct?!

engineer0101

British Gas Standard Variable
Previous DD £38.46
Finished the 6 months £102.69 in debit thus:
DD should have been £55.58 (£38.46 + (£102.69/6))

New DD amount is £135.01 - a 243% increase from £55.58!!

Spoke to British Gas who advised it's due to anticipated winter costs and October price rise. 

Does this sound correct? I feel sick. They advised I can reduce the monthly DD but surely that will just shift the problem to 6 months down the line where I'll need to pay even more!!

Thankyou to anyone who replies in advance.



EDIT: the plot thickens and I didn't see this part of the bill: 

"Estimated annual usage: 11694kWh"
"Estimated annual cost: £950.60"

Surely therefore the monthly cost should be £79.21 (£950.60 / 12). Unless I'm missing something. Also we're on Smart Meters.

GingerTim

Can you let us know your actual usage in kwh in the last twelve months, and some knowledgeable person here will be able to give you a sense of whether it's correct.

It does, sadly, sound about right for what's coming.

TimSynths

I'm in a two bed flat (just me) single glazed windows and I WFH, my dual fuel BG DD is £136, was £80 a year ago. I'm a few £100 in credit and building up for the winter.

[Deleted User]

engineer0101 said:

British Gas Standard Variable
Previous DD £38.46
Finished the 6 months £102.69 in debit thus:
DD should have been £55.58 (£38.46 + (£102.69/6))

New DD amount is £135.01 - a 243% increase from £55.58!!

Spoke to British Gas who advised it's due to anticipated winter costs and October price rise. 

Does this sound correct? I feel sick. They advised I can reduce the monthly DD but surely that will just shift the problem to 6 months down the line where I'll need to pay even more!!

Thankyou to anyone who replies in advance.



EDIT: the plot thickens and I didn't see this part of the bill: 

"Estimated annual usage: 11694kWh"
"Estimated annual cost: £950.60"

Surely therefore the monthly cost should be £79.21 (£950.60 / 12). Unless I'm missing something. Also we're on Smart Meters.

What have smart meters got to do with anything related to your energy bill (apart from billing accuracy)? The Cap is forecast to increase in October and again in Jan 23. £100 of credit is not a lot given that we are coming to the end of summer. BG is right, you could lower your DD payment but any increase may be a lot higher. Forget DD payments: you will only be billed for the energy that you use at the agreed tariff price.

Your other option is variable DD and pay  in full on production of a bill.

Coffeekup

engineer0101 said:

EDIT: the plot thickens and I didn't see this part of the bill: 

"Estimated annual usage: 11694kWh"
"Estimated annual cost: £950.60"

Surely therefore the monthly cost should be £79.21 (£950.60 / 12). Unless I'm missing something. Also we're on Smart Meters.

12,000 units of gas will set you back £1,740 in October (@14.5p) after vat and standing chartes £1,840

12,000 units of electric will set you back £5,760 in October (@ 48p per unit). Take in standing charge and vat that will be £6,230.

You don't specify what fuel it is or both and if you want a more accurate figure we need the last 12 months of your usage for the fuel or both fuels.
If you can work that out post a meter reading (actual not estimated) from around this time last year and one from today.

Brie

engineer0101 said:

EDIT: the plot thickens and I didn't see this part of the bill: 

"Estimated annual usage: 11694kWh"
"Estimated annual cost: £950.60"

Surely therefore the monthly cost should be79.21 (£950.60 / 12). Unless I'm missing something. Also we're on Smart Meters.

What they may be doing (according to almost every company I've talked to over the last couple of years) is a calculation like this:

Est cost:  £950.60
Debt on acct £102.69 for 6 months so £205.38 for 12 months possible
Monthly cost: £96.33 ((950.60 + 205.38) / 12)
But what if E101 gets into debt again?  Best add some extra 
Extra safety net: £38.68 (£96.33 x 40%) 
New DD £135.01
Ah, that's much better!  Now we can pay the execs bonuses again this year.

Or as my company has just done base the entire next year based simply on your use in Jan or Feb - which ever was coldest.

pochase

Extra safety net 40%? You should know that the new expected unit rate for October is over 100% more expensive.

Just going with the new October rates gas will be £154 per month for the OP, not including the £100 debt.

Most likely the OP will need a DD of about £170 for the next  if the predictions are anywhere near the truth.

BTW, going from £55.48 to £135.01 is only a 143% increase, not 243%.

k_man

engineer0101 said:

British Gas Standard Variable
Previous DD £38.46
Finished the 6 months £102.69 in debit thus:
DD should have been £55.58 (£38.46 + (£102.69/6))

New DD amount is £135.01 - a 243% increase from £55.58!!

Spoke to British Gas who advised it's due to anticipated winter costs and October price rise. 

Does this sound correct? I feel sick. They advised I can reduce the monthly DD but surely that will just shift the problem to 6 months down the line where I'll need to pay even more!!

Thankyou to anyone who replies in advance.



EDIT: the plot thickens and I didn't see this part of the bill: 

"Estimated annual usage: 11694kWh"
"Estimated annual cost: £950.60"

Surely therefore the monthly cost should be £79.21 (£950.60 / 12). Unless I'm missing something. Also we're on Smart Meters.

The estimate of £950 is based on current prices, and is a standard way of displaying the information.

So the current DD should have been around £80 (£950/12), not £55, or £38.
You are in debit by only £102 as the last 6 months have low usage months.

As suggested above, on a fixed DD, you should/would normally be in credit at this time of year, by 1 or 2 month's worth.

Based on future, estimated prices, for 10 of the next 12 months, and the £102 debit, £135 seems about right (albeit no one knows for sure what the rates will be), and is approx 56% increase over the £80 that the DD should have been.

macman

OP, don't forget that you will be getting back £400 in credit over the winter, starting in October. Maybe more, depending on your circumstances.

k_man

macman said:

OP, don't forget that you will be getting back £400 in credit over the winter, starting in October. Maybe more, depending on your circumstances.

Worth adding, that this £400 doesn't get factored in the fixed DD calculations, even for electricity, where it will actually be applied.

engineer0101

Thanks everyone for your input, much appreciated.

And yes, 143% increase or a (*2.43) increase as someone pointed out. 

Looks like its about right unfortunately.

Cheers.