Correct description? - Energy Switch

NoelNoel

Our British Gas dual fuel fixed contract is ending and I'm looking to get another fix, preferably with BG or someone else who says they'll allow us to switch later without penalty to another of their tariffs, if prices come down.

On Which?'s comparison site, The Energy Shop, I found one of the top recommended products is the BG Cap Tracker Mar2028 v1, which it describes as "fixed rate".

On another site I found the same BG Cap Tracker Mar2028 v1 described as "variable", not fixed rate.

It's almost half the price of the "cheap" deals BG is offering me directly. If I ring BG I'm told their people can't discuss BG tariffs offered on price comparison sites, which is obstructive and I would have thought breaks fair trading laws. And comparison sites, to say the least, do not make it easy to question the finer details of what they are offering..

So, can anyone please help me with the 2 questions I need answering before I can commit to this new contract? —

1. is the BG Cap Tracker Mar2028 v1 tariff fixed rate or variable?
2. If I buy a British Gas tariff from a comparison site, does the British Gas promise still apply — that its fixed contract holders can switch at any time, free of charge, to another BG contract?

Many thanks!

tlcgrantham

A tracker tariff is variable. It tracks the price cap and changes every three months so not a genuine fix.

Scot_39

Fixed period, fixed discount normally and therefore variable rate.

So if forecasts to be believed about to jump up 20%+ in Jan.

Its not the sort of fixed rates deal your on currently.

At least they have Tracker in the name.

Others do not and it confuses a lot of people when their rates suddenly change months later.

QrizB

is the BG Cap Tracker Mar2028 v1 tariff fixed rate or variable?

It's fixed-term but not fixed-rate. It's a tracker tariff. It will follow the Ofgem cap up (and down, if it falls), generally with a discount. The discount is the reason to take it, but it's not a fixed rate tariff and Which? shouldn't be describing it as one.

It's almost half the price of the "cheap" deals BG is offering me directly.

It definitely won't be half the price of BG's own fixes. If the monthly DD looks to be half as much, it's probably because the annual consumption figures you've given to The Energy Shop aren't the same ones BG is using.

NoelNoel

Thanks for the clarity everyone. Your comments lead me to one more question —

1.can I believe anything described as "fixed" is actually a literally fixed tariff?

2. is a cap tracker the best type of deal I can get at the moment?

3.can anyone point me to a genuinely better deal that will allow me too switch if rates drop?

Many thanks again.

Scot_39

1 As above sadly not in the past - when you needed to understand what is fixed based on past issues at some suppliers. But at least all the trackers MSE lists have Tracker in the title now - perhaps they have changed.

2 A discount tracker may well look cheaper today - but only because its very likely fixed rates will be reflecting future higher prices for the year or two period it covers ahead.

But the discounts aren't normally huge - like £25 per fuel.

So at £50 - but it the cap jumps as MSE table to £1723 to £2084 - it will soon jump £1673 - 3% below the current cap to £2033 - 18% above the current cap. Wheras their best fixes are c6% above the current cap if get the MSE Club discount (£20 DF). Other comparison sites - again often with bespoke offers - are available.

3 The MSE guide is here

https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/

Have a read and see if that helps.

A quick scan suggests fixes carrying a c6% premium Vs todays cap - but a predicted 21% Jan cap rise (that arguably is looking increasingly optimistic with gas at 230p/therm earlier today)

EOn Next - normally in past allowed internal swaps in the same way BG, SP at least used to etc - but I'd read the terms as these are no longer normal times.

Sainsburys is now (a white label) branding front for EOn Next - so likely the same for exit fees - internal free (google says so) - again check

Outfox the third - allows a free switch only if over half way through according to google AI and fixing for longer than remaining - but I dont remember reading that here in the forum.

I dont tedn to trust google AI as only source - as sometimes isn't that accurate - or at least up to date - it can latch on historic info etc. - hence advice to check actual terms.

QrizB

1.can I believe anything described as "fixed" is actually a literally fixed tariff?

If the tariff name includes the word "fixed" then yes, it should be fixed. If it doesn't, you need to check; buyer beware.

2. is a cap tracker the best type of deal I can get at the moment?

Nobody knows. Anything that changes (whether "variable" or "tracker") is likely to become significantly more expensive in January. The only certainty is that a fix is fixed, but you won't know whether that's the "best" until you reach the end of it and look back.

3.can anyone point me to a genuinely better deal that will allow me too switch if rates drop?

They all allow you to switch. The problem is exit fees. A good fix will almost always include an exit fee, as the energy company has committed to buying energy for you and, if you leave, they'll still have to buy it (or pay their supplier to let them not buy it).

What fixed-rate tariffs do the comparison sites offer you? How many of them have exit fees?

NoelNoel

https://forums.moneysavingexpert.com/discussion/comment/82178598#Comment_82178598

That is amazingly helpful. Thank you

Scot_39

Just to emphasise the point - re the volatility of the Jan £2084 cap estimate - the mix of suppliers MSE use in their tables - was actually updated in a different MSE article - from £2084 to £2154 - 25% - as of last week (and again at least 1 month ahead wholesale gas up since)

So £2154-50=£2104/£1723 current cap - would mean an even higher - 22% tracker vs 6% fix differential if those deals still available

https://www.moneysavingexpert.com/utilities/energy-price-cap-prediction/

NoelNoel

https://forums.moneysavingexpert.com/discussion/comment/82178602#Comment_82178602

I can't reply to your question because I have to go back and start again.

This area is a minefield.

But
I must thank you and your fellow respondents for opening my eyes. I'm
no expert, but I thought I was smart enough to work my way through this.
And now, with a few good words of advice from you lot, I might just be
able to do that!

Once more, thanks!!!!

bristolleedsfan

EOn Next - normally allow internal swaps exception being from 24 month fix.