Domestic energy - variable or fixed rate?

cambsno

cambsno

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As my deal came to an end last year, and British Gas were not doing any new ones I went onto the standard variable tariff.

They emailed to day with a new fixed rate - but that would put my cost up 30-40% (from memory it would go from 1200 & 1350 to 1660 & 1750 a year. So even if the price jumps up 30% I will still be no better off. Am I missing something? Best to stay on variable surely?
 
I had mine through the other day, I currently pay £1152 per year, ( £96 / month) combined.
They (EDF) now want :-

Either a 2 year fixed rate at £2,565 per year, ( £213.75 / month) with a £150 exit rate per fuel,

or a standard variable, £1902 per year (£158.50 / month)with no exit fee.

I'm tempted to shop around but the advice seems to be stay put, and go with the standard variable option.
 
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cambsno said:
As my deal came to an end last year, and British Gas were not doing any new ones I went onto the standard variable tariff.

They emailed to day with a new fixed rate - but that would put my cost up 30-40% (from memory it would go from 1200 & 1350 to 1660 & 1750 a year. So even if the price jumps up 30% I will still be no better off. Am I missing something? Best to stay on variable surely?
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You may or may not be. Price is likely to increase by more than 30% in October just as you start using more energy. I’d say a fixed rate 30% higher than what you were paying is pretty good- Are you sure that’s all it is?
 
It’s 30% for one and 40% for the other. I need to check but I think it’s only a 12 month deal
 
A couple of points, the British Gas fixed rate deal was only until end of July 23, so from Oct to Jul is only 9-10 months at a potentially increased rate. We are are also due a £400 'government rebate' taken as an 'at source deduction' in the Autumn.

My fixed price deal was £1200 more than the current fixed rate tarriff, even taking the October increase into account, I reckon I'm better off on fixed rate (not taking in account the rebate which works in my favour). I have another reason as well in that my step-son is likely to move out in next 2-3 months, so our usage will drop as the number of adults in the house will go from 3 to 2.
 
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My position is that if they are offering something its for their benefit not the customer.
I too got the BG offer and decided against it as I have in the past.
The variable rate has been the cheapest for a while now and recommended by the money supermarket chap
 
I've stuck with the SVR from EDF for a while now as it is capped, and at present it's acceptable. We are moving house in August to a house where it will be oil and electricity, so I'm anticipating a hit on both counts.
 
Martin Lewis suggests that Cromwell (who generaly get it right) are saying 46% increase in october putting typical use at £2880 per year.
His best guess is that if you can get a fix at 35% above your current annual use rate then its an option that takes into account potential increase in January/April. Over 40% isnt worth it.
He posted a guide on the MSE website last week

There were 3 fixes for exisiting customers and 1 that anyone could appy for but its more expensive.

The tricky bit is that you will pay more between now and October and then less than the standard rate after that for 9 months.

The british gas July 23 fix works out about £200 cheaper on typical use the the October fix.
For me its about £20 extra for June-sept for standing charge, i struggling to work out unit cost implication as i dont have accurate data as I moved to a company that went bust and dont have the only statements. My next job this morning is to work all that out
 
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