Is the EPG Variable as good as fixed?

Trigga7

I have a question that I'm hoping someone with more knowledge than myself can help me with, apologies in advance if this has already been covered
I am on a fixed tarriff with British Gas and will probably stay on it as the variable is almost identical.
The tarriff British Gas are strongly advising me to switch to is their new variable one, I had a webchat with British Gas this morning and was advised to stay on the fixed as the variable will fluctuate.
My confusion is that if the EPG caps the rates then the prices will not go up, and it certainly doesn't sound like they will be going down in the near future.....so doesn't this make it a fixed tarriff? How can it be variable ?
I hope this makes sense.....I'm struggling to make sense of any of it at the moment

BUFF

what fixed tariff rates are you on at the moment & when does it end?

You have heard/read/seen that under the newly installed Chancellor the current EPG rates will only last to April?

Astria

It's variable as it can change at any time, although at the moment it's fixed until April next year.

If your fix is almost identical, I'd stay on that as it's guaranteed not to change until it expires.

Trigga7

Hi BUFF,

Yes I did see that which I thought was a sudden change !
It makes me think I am better off staying on the fixed I am already on
It ends on 30th June 2023

Daily Charges
Gas 29.959
Electric 48.875

Unit Rates
Gas 10.457
Electric 34.226

Astria

At those rates I'd definitely stay on the EPG, and make a decision by next April - it might increase if it's currently being subsidised by EPG.

Trigga7

Hi Astria,

Just to clarify, are you saying you would change from this fixed deal I am currently on, to the EPG variable suggested by British Gas?

pochase

No, stay on the fixed tariff.

Currently you are paying the same as if you were on the EPG, and from April it will be very likely be cheaper than the SVT without EPG.

I very much assume that Astria wanted to say you should stay on the fixed tariff, alone "stay on" implies this.

Neil49

Like you I'm on a fixed tariff with British Gas (Exclusive Jul 23v2) and the main difference between the two options is that the daily standing charge reduces slightly with the variable tariff (2p for gas and 5p for electricity).

The kWH figures are virtually unchanged but the big difference is that there is no penalty for switching to another supplier if you are on the variable tariff. So if you want the flexibility to leave to another supplier then it's worth considering as BG charge £75 per fuel for an early exit from your current contract. 

BUFF

Until the end of his fix he will only have 2 months of being above EPG rates (& tbh the difference is minimal) once that ends & for those months hopefully his gas usage will be markedly down from winter use.
If you switch within the last 49(?) days of a tariff the supplier is not allowed to impose exit fees.

If I was  Trigga7 I would side with pochase & stay on the fix.

Trigga7

Thank you all for your kind help & advice

Astria

pochase said:

No, stay on the fixed tariff.

Currently you are paying the same as if you were on the EPG, and from April it will be very likely be cheaper than the SVT without EPG.

I very much assume that Astria wanted to say you should stay on the fixed tariff, alone "stay on" implies this.

What I meant to say is that the fixed deal may be subsidised by the EPG currently, but regardless it's best to stay on this fixed tariff for the time being, and see if the tariff increases in price next April when the EPG is reviewed, and if so, check if it's still the best tariff then.

Fingers were not co-coordinating, I wasn't typing what I was thinking