Fixed price energy supply tariffs

[otherclive]

British Gas are offering a fixed price tariff to August 2024 which is basically based on current SVR. It allows customers to switch to any other BG fixed tariff without exit fees. So if prices should go down, or regulator affects prices you can switch to a lower fixed price tariff; providing I guess that one is offered .

 

[Beachball]

Might be worth looking into if i want to change supplier at present paying £252 a month with Octopus and we are in credit

 

[otherclive]

Might be worth looking into if i want to change supplier at present paying £252 a month with Octopus and we are in credit

£90pm and £176 in credit. Don’t know how it will change in winter. But since we came off a low tariff in April our electric usage has stayed about the same month on month but the monthly cost has almost doubled.

 

[Raywood]

Fixed rate tariffs are a gamble on how prices will move over hat period. We are due another OFGEM maximum in October and my personal view is wait for hat before jumping in. They do have the benefit of fixing your price hopefully at an affordable level, so if you are risk averse they may be for you. It is possible the suppliers have an idea as to the future and want to lock you in to a higher figure, or am I too suspicious.

 

[otherclive]

Fixed rate tariffs are a gamble on how prices will move over hat period. We are due another OFGEM maximum in October and my personal view is wait for hat before jumping in. They do have the benefit of fixing your price hopefully at an affordable level, so if you are risk averse they may be for you. It is possible the suppliers have an idea as to the future and want to lock you in to a higher figure, or am I too suspicious.

If tariffs go down I can change to the lower tariff with no penalty. If prices go up then my tariff stays where it is. The tariff I have signed up for is basically identical to the present SVR for energy rate and daily charge.

 

[Buckman]

I think the tariffs shot up so high as we may have had to subsidise all those that were in contract and at much lower rate?

Electric is normally sold from a pool a year or more in advance based on historical data, but at the time of forecasting costs to make a profit, a war in the Ukraine for obvious reasons was not taken into account. The data would have been for domestic and business premises. It is not unknown for a large company that is a heavy user of electric to be in contract for up to 3 years.

I am still not sure why if the electric was purchased before the war started why or how the distribution company of which there are only 14 or 15 could have made the suppliers pay more even if it was from a pool as the power had already been purchased and the consumer of the electric in contract.