Fixed rate not fixed

WiserMiser

The blame for this widespread misunderstanding should be laid firmly at Ofgem's door for allowing the notoriously misleading term 'Fixed Direct Debit' to be used.  It's never been fixed, it's always been a guesstimate, as many have found to their cost.

'Equal  Direct Debits' or suchlike would be a better description.

BatOllie

WiserMiser said:

Forget getting a smart meter, far better to set a monthly reminder on your phone or PC to read the meters, send the results, jot them down and keep your own records.  You'll get a much better understanding.  Also download every bill as soon as it's issued: BG have an irritating habit of deleting all previous bills if they make a correction, so it can be difficult or impossible to identify overcharging and to be certain that everything has been corrected.

Best of all, consider changing to Monthly Variable Direct Debit where you pay in full each month for the exact amount you've used.  No surprises several months later when it turns out you've used more than was estimated, although it means higher bills in winter and lower ones in summer.

You may find that BG no longer offer MVDD; if so just Ditch & Switch to a friendlier supplier such as Octopus (remembering to bag a £50 freebie by using a referral code from a friend or relative).

Great advice.  Thank you. 

born_again

Bungle73 said:

Ayr_Rage said:

Bungle73 said:

Scot_39 said:

Bungle73 said:

Ayr_Rage said:

You aren't the first and won't be the last but if you had watched the Martin Lewis Money Show any time over the last 5 years or so you would have been in the know.

Fixed rates can save you a lot of money but you always pay for what you use, they have never been "all you can eat" buffets.

I'm constantly amazed at the amount of people who come on here who don't appear to have seen or read a single thing Martin Lewis has said, even though this is HIS website! 

But its not his website.

He sold out his ownership over 10 years ago for £10s millions.

https://www.bbc.co.uk/news/business-18295587

Whose face is at the top of this page...................................?

And what does it say next to his name, FOUNDER, not owner or any other association.

Is that so. Then why does he start every video with "Hello, I'm Martin Lewis of MoneySavingExpert.com"? And why is there a whole section entitled "Latest from Martin Lewis"?

Read what is at the bottom of every page, then read what is in this link

https://www.moneysavingexpert.com/site/editorial-code/

BatOllie

Farway said:

BatOllie said:

bagand96 said:

BatOllie said:

bagand96 said:

I posted this on the other thread...... 

As you've found out your fixed energy tariff relates to the unit cost.  You pay for the amount of energy you use, this will vary, so monthly bills will vary.  The DD is a payment to the account and bills are deducted from the account.  The idea is your monthly DD is an average and will cover the annual use.

If your account is in debt then reducing the DD back down unfortunately is just kicking the can down the road.  the debt won't go away and the increased DD would be designed to pay off the debt as well as meet your energy costs in future.

It will be worth you taking some time to understand your use and bills.  Log in to your British Gas account.  Look at your bills to understand your use and the costs.  Check the bills are accurate.... are they based on actual meter reads or estimates?  Are you on a smart meter? 

I am an idiot I know but probably confusing the fixed rate with mortgages! I do wish I'd been asked for meter readings prior to now then i could have adjusted my payments and usage then but BG waited 6 months to ask for them.  I am thinking of getting a smart meter but I rent and I don't know how long I'll be here. I have moved a few times in the  last 4 years so keeping on top of my energy usage has been difficult but I did have  a smart meter before and it did help. I'll have to get the landlord to agree. As for watching Martin Lewis,  I can't watch all of them because I work!

Without a smart meter you should be able to Log In to your BG accout and submit meter readings.  Aim to do this regularly, at least once a month, and they should generate an accurate bill monthly, that way you can keep an eye on what you're using/spending and if your account balance is where it needs to be.

Thanks.  I do appreciate the advice you've given.  I shall try and sort myself out and do regular readings for BG now.  Possibly see about getting a smart meter if I'm going to be here for another year in March and try and use less energy! 

I'm with BG, and they send me a monthly reminder to submit a meter reading, maybe once you register online same will happen for you

I'm registered with them online but in 6 months have only been asked for a meter reading once.  Last week which is why I  discovered the fixed rate is for units not the actual bill.  I'll try and pay off the bill then do monthly readings until the fixed rate ends then I'll do a bit of shopping around to see what my options are. The forum has been brilliant so thanks to everyone.  

powerful_Rogue

WiserMiser said:

The blame for this widespread misunderstanding should be laid firmly at Ofgem's door for allowing the notoriously misleading term 'Fixed Direct Debit' to be used.  It's never been fixed, it's always been a guesstimate, as many have found to their cost.

'Equal  Direct Debits' or suchlike would be a better description.

I'd hardly call it widespread and it's certainly not misleading.

powerful_Rogue

WiserMiser said:

Forget getting a smart meter, far better to set a monthly reminder on your phone or PC to read the meters, send the results, jot them down and keep your own records.  You'll get a much better understanding.  Also download every bill as soon as it's issued: BG have an irritating habit of deleting all previous bills if they make a correction, so it can be difficult or impossible to identify overcharging and to be certain that everything has been corrected.

Best of all, consider changing to Monthly Variable Direct Debit where you pay in full each month for the exact amount you've used.  No surprises several months later when it turns out you've used more than was estimated, although it means higher bills in winter and lower ones in summer.

You may find that BG no longer offer MVDD; if so just Ditch & Switch to a friendlier supplier such as Octopus (remembering to bag a £50 freebie by using a referral code from a friend or relative).

You can do exactly the same with a smart meter.

WiserMiser

powerful_Rogue said:

WiserMiser said:

The blame for this widespread misunderstanding should be laid firmly at Ofgem's door for allowing the notoriously misleading term 'Fixed Direct Debit' to be used.  It's never been fixed, it's always been a guesstimate, as many have found to their cost.

'Equal  Direct Debits' or suchlike would be a better description.

I'd hardly call it widespread and it's certainly not misleading.

• It's definitely widespread.  It's an old chestnut that keeps popping up in the forum and TV month after month after month...

• IMHO it's definitely misleading because a so-called Fixed DD isn't likely to stay fixed for very long.  It'll soon change (except in the unlikely event that the Estimated Annual Consumption turns out to be bang-on), otherwise credit/debt will keep building up, both of which are A Bad Thing.  And with so many people now on a Price Cap tariff, the so called 'Fixed' DD may well change every three months as it follows the Price Cap.

The kWh rates and daily charges on a Fixed tariff are genuinely fixed for the duration, but using the same word for an Equal or Smoothed DD will always cause confusion.

jimjames

BatOllie said:

bagand96 said:

I posted this on the other thread...... 

As you've found out your fixed energy tariff relates to the unit cost.  You pay for the amount of energy you use, this will vary, so monthly bills will vary.  The DD is a payment to the account and bills are deducted from the account.  The idea is your monthly DD is an average and will cover the annual use.

If your account is in debt then reducing the DD back down unfortunately is just kicking the can down the road.  the debt won't go away and the increased DD would be designed to pay off the debt as well as meet your energy costs in future.

It will be worth you taking some time to understand your use and bills.  Log in to your British Gas account.  Look at your bills to understand your use and the costs.  Check the bills are accurate.... are they based on actual meter reads or estimates?  Are you on a smart meter? 

I am an idiot I know but probably confusing the fixed rate with mortgages! 

Fixed rate for energy is the same as for mortgages, the interest rate is fixed for the duration, for an energy fixed rate the price per unit is fixed. If you borrow more money then you'll pay more for your mortgage, use more energy you'll pay more for your heating bills.

powerful_Rogue

WiserMiser said:

powerful_Rogue said:

WiserMiser said:

The blame for this widespread misunderstanding should be laid firmly at Ofgem's door for allowing the notoriously misleading term 'Fixed Direct Debit' to be used.  It's never been fixed, it's always been a guesstimate, as many have found to their cost.

'Equal  Direct Debits' or suchlike would be a better description.

I'd hardly call it widespread and it's certainly not misleading.

• It's definitely widespread.  It's an old chestnut that keeps popping up in the forum and TV month after month after month...

• IMHO it's definitely misleading because a so-called Fixed DD isn't likely to stay fixed for very long.  It'll soon change (except in the unlikely event that the Estimated Annual Consumption turns out to be bang-on), otherwise credit/debt will keep building up, both of which are A Bad Thing.  And with so many people now on a Price Cap tariff, the so called 'Fixed' DD may well change every three months as it follows the Price Cap.

The kWh rates and daily charges on a Fixed tariff are genuinely fixed for the duration, but using the same word for an Equal or Smoothed DD will always cause confusion.

A handful of people on a forum and a mention on the TV is not widespread.

Still totally disagree. It's based on usage. Maybe people should account for their own actions and research how energy billing works. It's not difficult in the slightest. We shouldn't change things to cater for those that can't be bothered.