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Original poster

Another electric one sorry!

28 replies

TabithaTittlemouse · 07/02/2022 21:01

I currently pay £64 a month standard variable tariff by direct debit. I could switch to a fixed long term tariff for £97 a month.
Considering the rise in costs should I switch to a long term tariff now?

Sorry if this is incredibly stupid.

OP posts:
ChittyChittyBoomBoom · 07/02/2022 21:03

I’ve just been doing the maths on exactly the same problem 😫🤯. Sorry to be of no help but you’re not alone ☹️.

Original poster
TabithaTittlemouse · 07/02/2022 21:04

Oh I’m glad I’m not alone! I’m usually quite clever but not tonight Grin

OP posts:
ChittyChittyBoomBoom · 07/02/2022 21:06

By my reckoning, the fixed rate you’ve been offered is in line with the 54% increase due on April 1st. You have to consider that rates MAY rise again in October so you’d be protecting yourself against that if you take the fixed rate offer.

(Maths is not my strong point so happy to be corrected 🙈).

Interested in this thread?

Then you might like threads about this subject:

Cost of living
Youngatheart00 · 07/02/2022 21:06

I had a conversation with my supplier last week (pre the announcements) and I was shocked how much extra the fixed tariffs cost

I’ve decided to stick with variable and just really try and cut down usage at home. If I can save 20% that will try and offset.

The fixed tariffs I see as having an inbuilt insurance premium cost and somewhat taking advantage of its captive audience

dementedpixie · 07/02/2022 21:09

@TabithaTittlemouse

I currently pay £64 a month standard variable tariff by direct debit. I could switch to a fixed long term tariff for £97 a month. Considering the rise in costs should I switch to a long term tariff now?

Sorry if this is incredibly stupid.

You should look at the cost per kWh rather than the price per month to work out what actual price increase is
ChittyChittyBoomBoom · 07/02/2022 21:10

Having said that, Martin Lewis’s advice is most people should stick with the price cap tariff. www.moneysavingexpert.com/news/2022/02/martin-lewis--most-should-do-nothing--stick-on-the-price-cap-and/?fbclid=IwAR1VtnW-WwqUdrB7pVTpbzqeDdxsAPR7VbNbbLb9JlN_r5xS6Yi9V5feqwI

Original poster
TabithaTittlemouse · 07/02/2022 21:28

@dementedpixie my current is: Electricity unit rate: 21.60p per kWh. Daily standing charge: 25.67p per day

OP posts:
dementedpixie · 07/02/2022 21:29

Yes, but what are the rates they are offering you to fix?

Original poster
TabithaTittlemouse · 07/02/2022 21:33

Electricity unit rate: 34.77. Daily standing charge: 365 days at 25.67p

OP posts:
dementedpixie · 07/02/2022 21:43

The new price cap for April to October is 28p/kWh so your fixed rate is 24% higher than the newest price cap.

The fixed rate is around 61% higher than your current price.

NannyGythaOgg · 07/02/2022 22:01

So you will be paying (probably) a higher KWH rate with a lower standing charge.

On that basis, if I'm right and it's not my speciality, is that the lower the usage the more you will benefit from fixing.

The only way to get a real comparison is to use your last years consumption and run them through both regimes.

Original poster
TabithaTittlemouse · 07/02/2022 22:32

Thank you! So I should stick?

@dementedpixie please come and live with me and help me adult?

OP posts:
BarbaraofSeville · 08/02/2022 05:23

You should probably stick but it's unknown and a slightly different consideration if you're electricity only because most people also have gas and I think the price rises in gas are increasing more rapidly, some people's gas unit rate will have more than trebled in a year once they lose their old fix and go onto April 2022 tariff.

You will be best doing nothing as long as there isn't another big rise in October but it's a gamble and no-one has a crystal ball.

So don't feel stupid because it's really not an easy question Smile

BarbaraofSeville · 08/02/2022 05:25

But definitely work out actual costs using rate per kWh and daily standing charge for your annual usage because sometimes the monthly payment is based on 'estimated' usage, to make it look cheaper and encourage you to lock in at a higher rate.

cakeorwine · 08/02/2022 07:35

You need to know your usage. That's what's key.

There's a thread here if you want to take a look.

www.mumsnet.com/Talk/_chat/4471775-Confused-about-the-price-cap-and-energy-consumption-Heres-the-thread-for-the-physics-and-the-maths-to-help-you

CaraMocha · 08/02/2022 08:58

So the price cap doesn't apply to fixed-term deals, and companies can charge higher rates for those? then you take your chances with a higher but fixed rate?

UKorNZdilemma · 08/02/2022 09:11

@TabithaTittlemouse. Don't feel stupid. I'm an accountant & it took me ages to decide what to do.

I was offered a new fixed price deal in September as my fixed period was coming to an end, they said I'd save £5 (over the year) if I re fixed. I didn't because I didn't want to be tied in & I was busy so didn't give it much thought.

Oct I rang BG & the girl confirmed that deal was no longer available but the xyz deal was, but she said I'd be better to wait as they'd send me another offer if a deal, so I did. I git that in Nov (already high than the Sept deal, woukd cost me more that either previous fixed deals & cheaper to stay on SV. BUT I was worried how much it might go up by.

I had lots of scribbles, & decided to fix, on the basis that I'm not a high user (live alone) and I'd rather know what my bill is going to be than risk a huge price rise.

Then after I'd done that Martin Lewis came out with his explanation/graphs etc saying to stick... typical.

However, for ME, I'm not unhappy I chose to fix, I don't think I'll either save or lose much, but I have peace of mind (for a couple of years anyway!!)

I suggest you watch & read what Martin Lewis has to say & understand it, before you decide what to do,

UKorNZdilemma · 08/02/2022 09:14

@CaraMocha

So the price cap doesn't apply to fixed-term deals, and companies can charge higher rates for those? then you take your chances with a higher but fixed rate?
@CaraMocha. The price cap is for the average useage, not keave your heating in high 24/7 run all appliances 24/7. You still get charge for the amount you actually use. It's really on the rate, not the total. IMO it's madness to talk about how much per month or price caps, when it's actually per kw that matters.
Original poster
TabithaTittlemouse · 08/02/2022 09:17

Thank you all for helping and not making me feel quite so stupid!

@cakeorwine I’ll have a look, thank you
@BarbaraofSeville we are electric only (well oil too but separate bill).
@UKorNZdilemma I completely understand the reassurance of paying a fixed rate!

OP posts:
CaraMocha · 08/02/2022 09:54

I'm considering switching to a fixed rate for the reassurance too.

I'm with E.on as that's the smart meter already installed, and not sure I'm allowed to change it (flats). My fixed tariff just ended, so I'm on the regular one now, which is basically set at the current price cap, so I'm assuming they will move it up to the new price cap as of April. There is a fixed term 1-year deal that is pretty much the same as that, so I'm wondering about changing to that next month (if it's still available) as it would then at least avoid a further rise in October.

It's the standing charge increases that worry me most, as I am single and in a one-bed flat, so can reduce my energy use to an extent, but the standing charge ends up as a big proportion of my bill, and the new one is almost double the old one. But none of the fixed tariffs really make the standing charge much lower; there's one that is a bit lower (but obviously with higher unit prices) but they're still way more than now. So I haven't decided yet whether it's worth the security of knowing the prices, but for only a year. The 2-year deal is quite a bit more - but then even that might seem a good deal if prices keep rising!

I'm also only electric (heating is a separate problem with a type of tariff that I can't choose, but will also go up unpredictably)

Presumably the £200 thing will apply to whichever fixed or standard tariff you are on, and the same with the paying back bit.

dementedpixie · 08/02/2022 11:54

@CaraMocha

So the price cap doesn't apply to fixed-term deals, and companies can charge higher rates for those? then you take your chances with a higher but fixed rate?
Yes the price cap (maximum charge per kWh) does not apply to fixed rates so the fixed rates can be much higher than the SVR. If you use less you pay less of course
marqueses · 08/02/2022 12:00

The price cap is for the average useage, not keave your heating in high 24/7 run all appliances 24/7.

To be clear @UKorNZdilemma the price cap rates have noting to do with usage

An average usage ££ figure is often quoted but it's meaningless really. The price cap kWh rates are what you need to look at, set based on the prevous period's wholesale prices.

dementedpixie · 08/02/2022 12:14

The price cap is for the average useage, not keave your heating in high 24/7 run all appliances 24/7

The price cap relates to the maximum price per kWh and yes, they also quote annual amounts related to that kWh figure. Its the price per kwh and standing charge along with your annual usage that you need to look at to determine the total cost of your gas/electricity

Another electric one sorry!
DobbleDobble · 08/02/2022 21:03

Actually Martin Lewis rejigged his advice recently an stated if you can get a tariff no higher than 40% , at worst 50% higher then you could take it so you know what your paying long term, if you like piece of mind and keeping in mind another possible price rise in October.But only fix for a year.
If you look up his “ in hindsight “ post on electricity you will see it.

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