COMPARISON

MACKEM99

Current deal with BG ends 1 Sep.  Doing a comparison via quidco compare (both with BG) it comes up with:

Current Gas

(A)

Fixed Tariff 14M v1

Unit rate

6.028p kWh

SC

23.315p per day

Projected cost:

£980

New Deal Gas

(B)

Fixed Tariff v77

Unit rate

6.137p kWh

SC

25.409p per day

Projected Cost 

£962

If new unit rate and SC are higher how can the projected cost of B (New Deal) be less than A (Current Deal)?

Or am I having a senior moment?

MikeJXE

It could be down to the length of the fix

I just took a new fix out with Octopus and it is lower than my last fix ending 1st September 

MWT

MACKEM99 said:

If new unit rate and SC are higher how can the projected cost of B (New Deal) be less than A (Current Deal)?

Or am I having a senior moment?

They may be assuming that after your current fix ends you will be moved to the SVT...

MACKEM99

MWT said:

MACKEM99 said:

If new unit rate and SC are higher how can the projected cost of B (New Deal) be less than A (Current Deal)?

Or am I having a senior moment?

They may be assuming that after your current fix ends you will be moved to the SVT...

Thanks.  In which case they need to state this.

debitcardmayhem

MACKEM99 said:

MWT said:

MACKEM99 said:

If new unit rate and SC are higher how can the projected cost of B (New Deal) be less than A (Current Deal)?

Or am I having a senior moment?

They may be assuming that after your current fix ends you will be moved to the SVT...

Thanks.  In which case they need to state this.

Not their fault , the v77 is 12 mths  the 14mv1 is believe it not is 14 mnths nothing to being moved to SVT. 
@MikeJXE suggested that earlier

MACKEM99

My question was:

How will a higher price for both units and SC lead to a lower bill?

debitcardmayhem

MACKEM99 said:

My question was:

How will a higher price for both units and SC lead to a lower bill?

my answer is 14 mths vs 12 mths eg 14 @90p = 12.60 12@100p = 12.00

Scot_39

MACKEM99 said:

Current deal with BG ends 1 Sep.  Doing a comparison via quidco compare (both with BG) it comes up with:

Current Gas

(A)

Fixed Tariff 14M v1

Unit rate

6.028p kWh

SC

23.315p per day

Projected cost:

£980

New Deal Gas

(B)

Fixed Tariff v77

Unit rate

6.137p kWh

SC

25.409p per day

Projected Cost 

£962

If new unit rate and SC are higher how can the projected cost of B (New Deal) be less than A (Current Deal)?

Or am I having a senior moment?

My first thought one is your use for 14 months assuming thats what the 14M means - one is your use for 12m the more standard fix duration by default I guess - the monthly rate is more - the total over the plan - assuming thats the basis of the quote - is not.

£980/14 = £70

£962/12 = £80

But thats a 14% increase, whereas the unit rate is only up c2% and the SC only up c9%.   So its clearly not that simple.

So perhaps your quote was for say 13months remaining to the Sep cut off date.

I'd just use the SC and unit rates personally in any such comparison. And do my own figures - if wanted totals - say if one cost up the other down etc - and never trust anyone elses.

What happens if you ask BG for a quote on the new deal ?

I am guessing though that maybe quidco include any cashback in their total cost estimates in some way - and that might also be different between plans.

Do those figures include or exclude cashback ?

MWT

Either way the projected costs are not really much use anyway, just compare the unit and standing charges and make a choice...

MACKEM99

MWT said:

Either way the projected costs are not really much use anyway, just compare the unit and standing charges and make a choice...

Thats what I normally do.

mmmmikey

MACKEM99 said:

My question was:

How will a higher price for both units and SC lead to a lower bill?

The question you have to ask in order to make sense of this is "what is lower than what?"  Or put it another way, what are they comparing?

The answer is that they are comparing deals available to you over the next year and saying if you take out a new fix your bill will be lower than it would be if you didn't take out a new fix and defaulted to SVR when your current fix ends. They are not saying that next year's bill will be lower than this year's.

The point of the comparison is to help you decide what the best deal is for you over the next year, not to compare what you paid this year with what you are predicted to pay next, if that makes sense?

AFAIK that's how pretty much all these comparisons work, but I do agree that these comparisons could and should be made clearer. Maybe an industry standard form of words would help?