Fixed Tariff Reduction

dw3305

I took a fixed price deal from BG in May.  My unit gas rate is slightly below the new cap, electricity slightly above.  Both my standing charges are well above.  At the standard consumption levels a bill at those rates comes to £2600, a little less if my electricity unit rate is capped.  Am I right in thinking that there is no cap on standing charges?  £100 isn't going to bankrupt me, but cancelling seems like a good idea.
Despite promises on the website to contact me and explain the options when everything is clear, I have heard nothing.  The only change I can see is that my contract start date is now 1st October, but all the rates are unchanged from the original ones.

[Deleted User]

You will get the slight electricity unit rate discount but nothing will happen to the standing charges.

They are capped, as are unit rates, but unlike the unit rates there is no discount mentioned for the standing charges for fixed tariffs.

Spoonie_Turtle

dw3305 said:

I took a fixed price deal from BG in May.  My unit gas rate is slightly below the new cap, electricity slightly above.  Both my standing charges are well above.  At the standard consumption levels a bill at those rates comes to £2600, a little less if my electricity unit rate is capped.  Am I right in thinking that there is no cap on standing charges?  £100 isn't going to bankrupt me, but cancelling seems like a good idea.
Despite promises on the website to contact me and explain the options when everything is clear, I have heard nothing.  The only change I can see is that my contract start date is now 1st October, but all the rates are unchanged from the original ones.

The only cap on standing charges is on the standard variable tariff.  On fixed tariffs they can be whatever they like, and there's no indication the EPG is expected to change them, only unit rates.

You'll have to see which works out better for your own annual usage, not just the typical usage.

dw3305

Thanks, both.  That's what I thought.  Cancelling will be better for me, but I'll hang on for a bit, hopefully till BG actually contact me as promised.  It's very unlikely that anything will change, but once you've cancelled there's no going back.

DrFaustbe

I called BG to ask. The said they won’t discount the exclusive may 23 v1…

Now, using my yearly consumption, I would save £12 a year if I were to move to the variable tariff…

also the rep on the phone couldn’t guarantee that the variable price cap would stay as it is for two years… he seemed to say that it might go up at one point even if the gov “said” it would be for two years. He said didn’t think that the unit rate was fixed for two years and advised to stay on the fixed contract for now.