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Gas

4 replies

Mairyhinge · 08/03/2022 21:42

Hi, can anyone explain to me about energy fixed tariffs? I’m with British Gas, and mid 2021 I went onto a fixed rate fixed until November 2023, paying £79 per month. I know this is low, but I’ve just sent a meter reading and they want me now to pay £314 per month!
I though the point of being on a fixed tariff meant I was safe from the price rise, they even sent me an email saying I was protected from the rise!
We have an end terrace 3 bedroom with converted cellar and it’s a cold house, but my main concern is what’s the point of a fixed tariff if they’re gonna up the price anyway?
I appreciate I’m probably being thick here but if anyone can help I’d appreciate it.

OP posts:
dementedpixie · 08/03/2022 21:48

£79 likely doesn't cover your usage. It's the price per kWh that's fixed not the monthly payment. Are you in debit on your account? Some of the £314 will be to cover ant debit balance and the rest will be to cover your actual usage.

Do you submit regular meter readings?

jytdtysrht · 08/03/2022 21:50

Have you double checked there isn't a typo in the meter reading?

Also yes as the pp says I believe the rate per unit is fixed, but your payment will vary depending on how many units used.

79 a month is definitely cheap for the size of your property

RoseslnTheHospital · 08/03/2022 21:55

If you are still on the same fixed tariff as before, then the only thing that can have changed is your usage. Can you check that the rates per kWh and the standing charge are the same as previous bills? Then look at how much you've used in kWh this month and see if it seems normal compared to previous months. Presumably you have been sending them regular meter readings?

AnotherDelphinium · 08/03/2022 22:00

So you can be on fixed tariffs (5p/kWh) or a variable tariff whereby it changes depending on current prices. So for instance right now gas wholesale prices are high so these would be passed onto customers on variable tariffs, up to the energy price cap.

Companies were encouraging people to go on a fixed tariff, as these are not covered by the price cap, hence the advice from Martin Lewis et al not to fix as then the price cap would cut in.

However, it’s not a fixed price like your broadband is, whereby you can use as much as you want for £30 a month, it’s metered so every kWh of gas costs, and there is also a daily standing charge.

I’d check your actual prices, it should say on your bill your kWh price, and your standing charge, and let us know, because you could also be on a really bad deal.

However, as PP said, your direct debit is probably too low, so you’re paying less than you’re using, so need to clear the debt and pay your current usage, hence the increased direct debit.

Does your bill say your current debt? If you can clear this in a one-er, then your direct debit will be lower going forwards, but probably still more than £79.

Finally, utility companies like to balance out your usage, so going into the winter you have a credit on the account, and by this time of year it’s down to zero (as the coldest months have passed) and you’ll start building up a credit over the summer when you’ll use a lot less gas. If you moved over in the autumn, you’ll never had had a chance to build up a credit for winter, but it may even out over the year.

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