Another energy one...

[dollytot]

Just moved into new property. Been out of the UK a while, and I'm a bit confused about all these prices (fixed vs variable) etc.

Give me the lowdown mumsnetters - who is the best? (hearing good things about octopus thus far).
Am I better to be on a fixed rate or variable? - Bit of a dumb question, but does fixed mean actually that - it's a fixed set price each month regardless of how much you use? TIA x

No. Fixed is not a set price per month no matter what you use.

You fix the price per unit. You pay per unit. The energy company estimates how much you will use based on house size and occupancy and set a monthly direct debit which should roughly cover your usage for the year. If you use more than they estimate, then you'll need to pay a higher amount. If you use fewer units, then you'll end up with a big credit with them and can reduce your monthly payment. But the unit price is fixed so wont go up. You're betting that the variable price will increase above your fix so you win and save money.

Thank you for your reply. To be honest, I don't like estimates because I have found in the past that energy companies overestimate things.

How would variable work if you don't mind me asking?

If you fix now, then when energy prices increases in march (think its march) then yours wont change as it is fixed. But the fix will be quite high per unit as the energy company dont want to end up with you paying way under market value later on.

Variable means you'll have a lower rate now per unit compared to the fix, but it can be raised when energy prices increase.

I'm on variable. You just need to look at prices and choose which you want to take.

They’re all much of a muchness with rates right now unless you need an EV tariff. I’m with octopus because of their EV rates and have been very happy with their customer service although Martin Lewis did publish a table and they weren’t top. Whoever you decide to go with make sure you get a referral to get some free cash!

There are no reasonable fixes. You're looking at the standard variable rate whoever you go with. I like Octopus as you submit monthly readings and get an up to date balance and your usage almost immediately

It sounds like you're confusing different things.

Fixed vs variable relates to the unit rate and standing charge. Because of the current high price of energy, no-one is offering fixes and you'll sign up to the price cap tariff, which is variable, but won't change until April 2023. It will then go up 20% and again be variable, but be the same for another year or so, depending on whether the government changes its mind on price protections.

How much you pay depends on how much you use (obviously), irrespective what sort of tariff you're on.

There's lots of ways to pay, fixed DD, variable DD, quarterly prepay or pay on receipt of quarterly bill. DD is usually cheaper, but your energy company will have to guess how much you use to set your DD, but if you sign up at this time of year, chances are you'll be in debit until next summer. If you sign up now and choose to pay by quarterly bill, you'll have to pay for all your winter heating in one go next February/March. Can you afford to do this?

There's help with the cost if you're in receipt of certain benefits, but that's based on qualifying at the right time.

Lots of info here:

www.moneysavingexpert.com/energy/

But yes, Octopus are very good.

Thanks for that. I will get onto Octopus tomorrow and try and get an account with them. I was just wondering if anyone is getting the energy bills support scheme? Is this available to every household in the UK regardless of income?

If you mean the £400 (6× £66/£67) then its being paid to everyone. Octopus is applying it directly to the electricity bill whereas some suppliers are sending the money back to the funding bank account.

Who currently supplies the property?

I've just moved in, so at the moment I haven't reached out to anybody. The old supplier was British Gas and they have swiftly send me a letter trying to get me to go with them.