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Original poster

Fixed tariffs for gas and electric

43 replies

WillSmithsRightHook · 01/04/2022 22:22

…does that mean we won’t be charged extra on top. Does fixed rate actually mean that, so we can have heating on etc without extra charges…

OP posts:
BonnyandPoppy · 01/04/2022 22:24

No it doesn’t. It means the price per kwh won‘t go up until the end of the fixed rate. Your bill will still go up the more you use.

Original poster
WillSmithsRightHook · 01/04/2022 22:46

Ok, we pay DD with Scottish Power for both electric and gas. We inherited the smart meters from previous tennant and are paying £108 per month for both. So we will get a bill on top of our fixed rate then? Sorry I’ve had wine 🙄😂 while I can still afford it

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Pinkflask · 01/04/2022 22:51

No. Fixed tariffs are not “all you can eat” for the price. It means each unit and the standing charge is fixed until the end of the term. But if you use more you pay more. Luckily pretty much any fix is likely to be significantly cheaper than variable rate so that’s the good news. But if you can’t afford a big rise you still need to watch your energy use.

dementedpixie · 01/04/2022 22:53

The price per kwh is fixed. If you use more you pay more. Make sure your monthly direct debit covers your usage

Original poster
WillSmithsRightHook · 01/04/2022 22:58

Thank you all, you’ve answered my question. So we need to be careful, we’re looking into saving energy as a matter of course and will be making changes.

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Original poster
WillSmithsRightHook · 01/04/2022 23:04

We moved here in December and have downsized from a 3 bed house to a 2 bed flat, hoping that this would be more economical to run…ha!

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ENoeuf · 01/04/2022 23:06

‘Luckily pretty much any fix is likely to be significantly cheaper than variable rate so that’s the good news.‘

Is this true? I had an email today where the proposed dd for the two fixed rates was about £50 more at least than the variable

Original poster
WillSmithsRightHook · 01/04/2022 23:09

@ENoeuf

‘Luckily pretty much any fix is likely to be significantly cheaper than variable rate so that’s the good news.‘

Is this true? I had an email today where the proposed dd for the two fixed rates was about £50 more at least than the variable

Also what I’m trying to clarify…
OP posts:
BonnyandPoppy · 01/04/2022 23:11

Yes you will get a bill based on usage. If you have used less than you paid for with your DD then you will be in credit and if you used more then you will owe them more money. The DD amount is a guess from the energy company either based on the typical usage or the old tenants usage. Once you have a few readings of your own you can work out how much you should be paying. You can usually see your daily usage/meter reading on your smart meter.

Franklin12 · 01/04/2022 23:12

It definitely isn’t the case that any fix is cheaper than variable. The advice now is not to fix at present.

If a fix was cheaper the energy websites would have gone into meltdown - again.

dementedpixie · 01/04/2022 23:12

Luckily pretty much any fix is likely to be significantly cheaper than variable rate so that’s the good news

This is untrue just now. Maybe in the past you could get a cheap fix but not now. Fixed rates are much more expensive than the variable rate at the moment

MayMorris · 01/04/2022 23:21

@ENoeuf

‘Luckily pretty much any fix is likely to be significantly cheaper than variable rate so that’s the good news.‘

Is this true? I had an email today where the proposed dd for the two fixed rates was about £50 more at least than the variable

You need to look at usage over 12 months. What you use in terms of kWh is divided up over 12 months ( or some companies do 6 mth or 1/4), as an average. Cost then calculated from your chargers per unit. Plus your fixed service charge That will be your average monthly bill So your Direct debit should be about that How much your DD actually is depends on your accuracy of estimated use going towards It also depends on currently, what your provider thinks they can kid you into paying as they want large credits on accounts to help cash flow currently Just because your DD is given by a provider as £x per month it doesn’t mean that would be your average monthly bill. Nor is it your actual monthly bill The only way to work out how much a certain deal will cost you is to estimate your future use and calculate from the kWh chargers DD currently are worth checking and challenging with providers - I have literally only just got back £150 credit from an account I had with a company that went bust last year- don’t build up the credit in your account as companies want you to do over spring and summer- it is a complete pain to get it back.
Cecilia2016 · 01/04/2022 23:23

I’m with Scottish power too and I just realised that my 1 year fixed rate expired end of January and I never got a reminder about it. I have been paying £207 a month direct debit and I’m just hoping it doesn’t change.

MayMorris · 01/04/2022 23:24

Also, I’m on a fixed deal. Company TOLD me to up my DD BY 75% about 8 weeks ago.
I rang them, gave them my calculations and asked why they thought this was anyway reasonable? And here is what I did agree to increase it by (£15 actually).
It took them about 2 mins to check my figures and agree my proposal.
They were just chancing it

TheDaydreamBelievers · 01/04/2022 23:26

Fixed means a fixed price per "bit" (unit) of electricity. Your direct debit is an estimated amount you use X the rate. If you used more, they'd put up the bill

TheDaydreamBelievers · 01/04/2022 23:27

If you are not already fixed, advice is now not to fix your rate

Thoosa · 01/04/2022 23:28

@ENoeuf

‘Luckily pretty much any fix is likely to be significantly cheaper than variable rate so that’s the good news.‘

Is this true? I had an email today where the proposed dd for the two fixed rates was about £50 more at least than the variable

The cap will go up again in October, and prices will stay volatile for a while to come.

For tat reason, I’ve taken a slightly higher (2 year) fix, similar to what you describe, expecting to come out better off over the two years. So weigh it up carefully.

Thoosa · 01/04/2022 23:30

Most of the hood fixes have gone, admittedly, but what is available is still varying dramatically day for day.

I’ve been tracking it through MSE energy club.

latetothefisting · 01/04/2022 23:32

@ENoeuf

‘Luckily pretty much any fix is likely to be significantly cheaper than variable rate so that’s the good news.‘

Is this true? I had an email today where the proposed dd for the two fixed rates was about £50 more at least than the variable

Right so for someone who is still on their OLD fix this is true e.g somebody who in last July fixed for 1 year it is almost definite that whatever their fix was it will be cheaper than anything (including the variable rate) that is available now.

For someone who is moving into a new property today the variable rate is likely to be cheaper than any fixed rate that is available now.

However I don't really understand your circumstances OP as I thought even if the old tenant was on a fixed rate that would end with them when they moved out, and you would have to set up on your own account as new tenants and wouldn't be eligible for the fix the old tenants had in place?

HanSB · 01/04/2022 23:33

I’m on the standard rate for British Gas and my bill will be around £1000 more annually for gas and electric. I had a quote from Scottish Power this week for 1 year or 2 year fix (both were the same quote) and it was going to be over £7000 more annually! The person I spoke to said at the moment the cheapest rate is the standard one as it’s capped by Ofgem

Original poster
WillSmithsRightHook · 01/04/2022 23:35

I’m fixed with Scottish Power now £108 a month for gas and electric 2 years in a 2 bed flat…is this bad? We weren’t sure what to do at the time, we’d downsized from a 3 bed house…god knows how much they are paying

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dementedpixie · 01/04/2022 23:36

Price per month means nothing. What's your rate per kwh and your standing charge?

dementedpixie · 01/04/2022 23:37

And does your monthly payment cover your usage?

Original poster
WillSmithsRightHook · 01/04/2022 23:42

No idea. OH looked and can’t work it out 🙄

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Original poster
WillSmithsRightHook · 01/04/2022 23:43

We on a smart meter and he says can’t access correct readings etc 🙄

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