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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

See all MNHQ comments on this thread

Gas and electricity bills to soar

783 replies

Cosmos123 · 18/09/2021 17:33

This is worrying as it will push many into fuel poverty.
Rising food prices and empty shelves.
Is anyone worried?

OP posts:
Thread gallery
14
Claudethecat · 21/09/2021 21:03

@Limejuiceandrum

If people can’t cope with the idea of eating a sandwich or a salad for a few odd days then it’s a worry. Also it’s not going to happen that you’re going to be stuck in the dark for days on end, if IF, the worse comes to the worse it will be controlled, like it was in the 70s, it’ll be late at night. Just go to fucking bed early and have a bloody sandwich for dinner.

Empty shelves didn’t need to happen in covid but it did, because of mass panic. It’s fucking ridiculous

The power cuts in the 70s were generally between 7am and midnight not very late at night when people were going to bed or in bed -that would not have saved much power so there would not have been much point!
GrannyWeatherwaxsHatpin · 21/09/2021 21:09

How do you work out how much your bill is going to increase so you can decide whether to move to a fixed rate or stay on the standard variable?

That's a bit of an impossible question! A variable tariff is just that: variable. The amount you pay will fluctuate as the wholesale price (the price at which your supplier buys their energy in) fluctuates. If it falls you're quids in; if it rises your bills will go up accordingly.

The only thing you can really is to firstly look at what you're paying at the moment on your variable rate. This will be a combination of the standing charge, which is an amount you pay per day regardless of whether you use any energy or not, and the unit charge which is the amount they charge you per unit of energy used.

Then compare this with the fixed deals you can find and see whether they're cheaper or more expensive. If you can, find a Winter bill and work out how it compares with the deals on offer. You'd calculate this as standing charge x no days in the month = total monthly standing charge, and units used in a month x unit charge = total monthly unit charge, then add total monthly standing charge and total monthly unit charge together.

If a fixed deal would work out cheaper then great but you need to be aware that if energy prices fall you won't get the lower price. You can end your fixed term period early to take advantage of a better offer but there might be an early-exit penalty (many don't have this, however, so it's worth checking). If a fixed deal would be more expensive then you need to decide which risk you prefer: higher but fixed bills, or hoping that variable rates won't go up too much but knowing that they might go up a lot.

I always prefer to know what my costs will be, even if it costs a bit more in the long run but it's an individual thing Smile

Neveranynamesleft · 21/09/2021 21:26

@Limejuiceandrum

Its fuckin ridiculous that in this day and age people have to decide whether to heat or eat. Yes, some people may be panicking but they may have very good reason to be.

Sn0tnose · 21/09/2021 21:52

I think we’ve been pretty bloody lucky with our energy. I’ve had statements from British Gas and EDF in the last couple of weeks showing me how much we spent last year and estimating the same amount of energy will only cost an extra £20ish for each over the next twelve months which, luckily, won’t be that noticeable. We pre-pay for ours as we go with a key and card.

I think we’re pretty prepared for cuts. If the electric goes, I’ve got a gas cooker (chosen purely on the basis that I’d be able to cope with one fuel if I ever had to choose which bill to pay) to warm the kitchen up and an emergency hob kettle to fill up hot water bottles (£3 at Asda atm). Don’t open the fridge or freezer. Longer term, keep milk/juice and any fridge stuff that will fit in a waterproof sandwich bag in a bucket of cold water, unplug everything, matches and candles in a particular place so no hunting about and a rechargeable camping lantern. Get moving about and wear layers. Put a woolly hat on (B&M, £2) If the gas goes, we’ve got the normal kettle to do hot water bottles and the microwave/slow cooker. If both go, I’ve got mountains of brushed cotton Christmas bedding and I’ll have the duvet on the sofa. Everyone I know on benefits is usually doing something similar, so they aren’t panicking. It’s things like paying for food etc that they’re worried about.

Limejuiceandrum · 21/09/2021 21:53

Well I straight up don’t think it’s going to happen
And I did think covid was going to happen

Hippywannabe · 21/09/2021 21:56

I had an email tonight from my supplier, they want to put my payments up from £86 to £174! That is over £2000 a year for just DH and I

Sn0tnose · 21/09/2021 22:02

Well I straight up don’t think it’s going to happen Good for you, fingers crossed you’re absolutely right and you get to come back to this thread and tell everyone you told them so. But I’ll be fucked if I’m going to risk having my mum sat in the dark, freezing cold, because I wasn’t prepared.

And I did think covid was going to happen Not really a surprise though, was it? Considering how long it took to get to us, anyone could have seen what was heading our way.

Furries · 21/09/2021 22:20

@Limejuiceandrum

Well I straight up don’t think it’s going to happen And I did think covid was going to happen
You do realise that a number of people may also be worried about older relatives, who live some distance away, and might not be spas savvy re being prepared for a shortage, or finding a new deal, etc etc.

Think we are all smart enough to know that we can eat sandwiches ffs.

And they didn’t turn the power off when everyone had gone to bed.

There’s nothing wrong with individuals trying to stay on top of the game. Yes, full-scale panic isn’t going to help anyone. But hopping on a thread and being totally scathing is not a good look and not helpful to anyone.

Ijustknowitstimetogo · 21/09/2021 22:25

Then compare this with the fixed deals you can find and see whether they're cheaper or more expensive.

Thanks. All the fixed deals on offer now are more expensive than my current variable rate. Aren’t all gas prices about to go up from October? So it’s difficult to know how these fixed rates compare to what this dreaded price rise is going to be. Is there no way to know what the new gas price is about to be? I thought Martin Lewis said it would be a 12% increase but I can’t find that anywhere.

tiddlysquat · 21/09/2021 22:45

Managed to cancel my switch to avro. They still tried to take the first payment today but the bank reversed it at my request.

I got all my credit balance refunded from my existing company (igloo, have been utterly brilliant) . Will just take the hit now, I don't see the point of moving , will just wait and see .....

DrHildegardeLanstrom · 21/09/2021 22:51

I've not long switched to Igloo from Bulb and am a bit nervous!

justasking111 · 21/09/2021 22:59

I was working in a super in the 70s we had to work around rolling power cuts. Candles on counters handle to work the tills. No credit cards then to worry about

justasking111 · 21/09/2021 23:10

Interesting to listen to this. www.bbc.co.uk/sounds/play/b03mcklz

userxx · 22/09/2021 08:42

@DrHildegardeLanstrom

I've not long switched to Igloo from Bulb and am a bit nervous!

I've not long switched from SP to bulb so understand your concern 🙈

Billandben444 · 22/09/2021 08:48

You do need to be good at putting money aside but I've never done a direct debit for any utility. I get an estimated reading/bill from EDF every quarter, go online and enter correct reading and then 3 days later my true bill appears online and they take that amount from my bank within 7 days. Why would I want them to have my money in advance and build up a nice juicy credit to fatten their bank balance? I ticked the 'pay whole amount quarterly' box but you do need to put money aside yourself to cover the bills.

BlackLambAndGreyFalcon · 22/09/2021 08:53

@Billandben444

You do need to be good at putting money aside but I've never done a direct debit for any utility. I get an estimated reading/bill from EDF every quarter, go online and enter correct reading and then 3 days later my true bill appears online and they take that amount from my bank within 7 days. Why would I want them to have my money in advance and build up a nice juicy credit to fatten their bank balance? I ticked the 'pay whole amount quarterly' box but you do need to put money aside yourself to cover the bills.
Because many suppliers offer a discount for monthly direct debit repayments.
BarbaraofSeville · 22/09/2021 09:06

As well as the discount, your bill is spread out over the whole year, so you don't need to pay more in winter.

If you use it, you have to pay for it anyway, and it's not like you'd be earning an interest by keeping the money in your own account instead.

SpiderinaWingMirror · 22/09/2021 09:12

Ovo, who I have just moved from paid 5 % interest on credit balances tbf. Really liked them but have fixed with no exit fee to what I assume is the capped price elsewhere.

Ijustknowitstimetogo · 22/09/2021 11:22

[quote Claudethecat]Someone has made a calculator so that you can find out what the new variable rate will be for your area:

r6fd51uoetngaqh-db202106081427.adb.uk-london-1.oraclecloudapps.com/ords/r/apex_live/energy-price-calculator/home?session=115814736516354

damn-lies-and-statistics.blogspot.com/2021/09/electricity-gas-price-cap-unit-rate.html[/quote]
That’s useful thanks.
I think I will be better off staying on variable for now as the fisted rate deals are all quite high. But I shroud probably switch from SP as there are better SVTs out there. (Are octopus and igloo real?! Strange names).

TokyoSushi · 22/09/2021 11:33

From MartinLewis on Twitter just now...

Martin Lewis
@MartinSLewis
·
8m
Strong rumours that Igloo is appointing administrators. I see
@MarkKleinmanSky
is saying the same. Igloo is a big one. If you're a customer, screen grab your status now and do a meter reading just in case. Updates later if it is confirmed.

Claudethecat · 22/09/2021 12:03

Is anyone with Together Energy? This is a bit worrying, or maybe it is just the opposition in Warrington Council trying to make political mileage out of the crisis:

www.warrington-worldwide.co.uk/2021/09/21/call-for-council-to-carry-out-urgent-review-and-exit-from-investment-in-together-energy/

Dayofpeace · 22/09/2021 12:08

@doublemonkey

Tricky question as it depends on what you have, your goals, stage of life and risk tolerance. But at a high level, I think inflation is here to stay for a while, though CPI figures will not reflect the true scale as it would not be politically expedient to do so, and never has been,
Look for investments that do well in inflationary environment. This is likely to be physical property and land, producers of commodities on the stock market, or funds or ETFs of soft and hard commodity sectors. Also Energy related stocks (producers, not just middle-men). As well as UK, many of these are on international exchanges, such as S&P, Canadian, and Australian which are pretty easy to buy. There are also inflation-linked bonds for those who seek a lot of security / risk aversion, though returns are poor by comparison - that is the risk / performance trade-off. Cryptocurrency is an outsized performer by far, but has run the vast majority of its 4 year cycle, and is a risky play at this stage, although I do believe it has further to go presently, but perhaps something to be borne in mind next time around, when everyone thinks it’s dead again.

For anyone with debt, I would always pay that down first as much as possible, because I would not bet on interest rates staying at zero or below for ever. If inflation runs too hot, central banks may well raise rates to temper inflation and look to some form of monetary reset to resolve the global debt problem.

Mumtofourandnomore · 22/09/2021 12:37

[quote Claudethecat]I just saw this on the MSE site. Not sure if it indicates these are the suppliers most likely to go this week?

www.ofgem.gov.uk/publications/ofgem-orders-five-suppliers-make-payments-government-renewables-scheme[/quote]
@Claudethecat those are payments for the feed in tariff - they are relatively small. Payments for the ROC (renewables) credits are due imminently and are much higher - the last date for payment is end of Oct I think (due before then though). So I would say that being on that list is definitely a huge danger sign, but not being on it does not necessarily mean a supplier is safe (if that makes sense !)

DrHildegardeLanstrom · 22/09/2021 13:07

@TokyoSushi

From MartinLewis on Twitter just now...

Martin Lewis
@MartinSLewis
·
8m
Strong rumours that Igloo is appointing administrators. I see
@MarkKleinmanSky
is saying the same. Igloo is a big one. If you're a customer, screen grab your status now and do a meter reading just in case. Updates later if it is confirmed.

Fuck. Just screen shotted all of my account