Sainsbury's Energy Renewal. Confused.

drlabman

My one year fix with Sainsbury's Energy (E.On Next, I believe) expires on 1st Oct.  Today I've had their email regarding renewal but I'm slightly confused about how the price cap rise in October plays into this.

I'm currently paying £95 a month dual fuel.

If I do nothing I'll be switched to their standard variable tariff for which they estimate for the next 12 months:
Electricity £977
Gas £883

If I choose their cheapest 1 year fix, 1yr Smooth Renew v20 the estimated cost will be
Electricity £1885
Gas £1700

Big difference.  That looks to me like the first estimate doesn't have the October price cap rise factored, whereas the second does.

Can someone explain?  Better still, any advice?

mysteryUser

I'd say your thought is correct, the first one is based on the current rates which isn't what they will be in reality in October. Sainsbury's don't know what those rates are yet though so they can't show them in comparison.

The important bit is what are the rates per kWh for the gas and electricity being offered on the fix?

Olly_J

I can see this for the tariff detail in my Sainsbury account

Smooth Renew v20

Electric
61.54365p per kWh
41.66p per day

Gas
15.06645p per kWh

27.22p per day

Which you can compare against the forward predictions to unit costs over the next 12 months

pochase

drlabman said:

My one year fix with Sainsbury's Energy (E.On Next, I believe) expires on 1st Oct.  Today I've had their email regarding renewal but I'm slightly confused about how the price cap rise in October plays into this.

I'm currently paying £95 a month dual fuel.

If I do nothing I'll be switched to their standard variable tariff for which they estimate for the next 12 months:
Electricity £977
Gas £883

If I choose their cheapest 1 year fix, 1yr Smooth Renew v20 the estimated cost will be
Electricity £1885
Gas £1700

Big difference.  That looks to me like the first estimate doesn't have the October price cap rise factored, whereas the second does.

Can someone explain?  Better still, any advice?

Your supplier when offering you a fixed tariff has to include a comparison to the CURRENT SVT. This is regulated by Ofgem.

The current SVT is based on the April cap, we have lot of predictions, but the new cap will only be announces on the 26th of August, and than suppliers will start to do their price lists.

The fixed tariff has nothing to do with the cap, it is not regulated in any way. They could offer you gas for 1p or £1. 

drlabman

So, I'm assuming there's no 1 yr fixed tariff I could switch to now that would beat what Sainsbury's are offering.  I guess the question is whether I should commit to the Smooth Renew now - or at least before Aug 26th?  I suppose it may not even be available after that.

Also, I've never been on a variable tariff before.  Is there any situation that it would be a good idea to just roll over into that in Oct?

sienew

drlabman said:

So, I'm assuming there's no 1 yr fixed tariff I could switch to now that would beat what Sainsbury's are offering.  I guess the question is whether I should commit to the Smooth Renew now - or at least before Aug 26th?  I suppose it may not even be available after that.

Also, I've never been on a variable tariff before.  Is there any situation that it would be a good idea to just roll over into that in Oct?

I got the Smooth Renew v19 last week with these rates:

Unit charge

52.12p/kWh

Standing charge

48.53p/day

Unit charge

13.26p/kWh

Standing charge

27.22p/day

The rates are changing literally weekly so if you want this deal you shouldn't wait.

The rates you are being offered are quite a bit higher than offered last week though and I wouldn't have fixed at your prices. Although you could join the fix and if the price cap announced on august 26th is more than predicted stay on it, if the price cap is lower than your rates you could cancel in the 14 day cooling off period and just move to the standard variable instead.

Olly_J

The only thing I'd say regarding the price cap though, is that its every 3 months from Oct, so its not just the rise then, its the rise predicted in Jan and April to take into account over the duration of the fix. Even it it is more expensive for 3 months, you may still save overall with the other predicted rises to come next year

macman

drlabman said:

So, I'm assuming there's no 1 yr fixed tariff I could switch to now that would beat what Sainsbury's are offering.  I guess the question is whether I should commit to the Smooth Renew now - or at least before Aug 26th?  I suppose it may not even be available after that.

Also, I've never been on a variable tariff before.  Is there any situation that it would be a good idea to just roll over into that in Oct?

Yes, in the situation that wholesale prices start a consistent downward trend. 
As Harry Callaghan said, 'do ya feel lucky?'

pochase

macman said:

drlabman said:

So, I'm assuming there's no 1 yr fixed tariff I could switch to now that would beat what Sainsbury's are offering.  I guess the question is whether I should commit to the Smooth Renew now - or at least before Aug 26th?  I suppose it may not even be available after that.

Also, I've never been on a variable tariff before.  Is there any situation that it would be a good idea to just roll over into that in Oct?

Yes, in the situation that wholesale prices start a consistent downward trend. 
As Harry Callaghan said, 'do ya feel lucky?'

You are not betting on Russia ending the war and starting to give away free gas?

SlinkyWeevil

Where did you find the rates for the new tariff? They’ve emailed me today but only given me a price comparison (which is either double or quadruple what we pay now) but no info on the actual standing charges or unit prices? 

Olly_J

SlinkyWeevil said:

Where did you find the rates for the new tariff? They’ve emailed me today but only given me a price comparison (which is either double or quadruple what we pay now) but no info on the actual standing charges or unit prices? 

In the Sainsbury portal, Account Summery screen, click the change tariff button and you'll see the available options, and unit prices under full details for each