There are no cheap energy tariffs. Message from Martin Lewis about cheap energy prices

Lee

Moderator
Currently pay until April

Gas
Standing charge 15.66p
Unit rate 3.044p

Electric
Standing Charge 15.66p
Unit Rate 16.097p

I've been offered until April 2023

Gas
Standing Charge 22.47p
Unit Rate 4.18p

Electric
Standing Charge 22.74p
Unit Rate 19.72p

I have no idea what to do. Quite a large increase if I was to switch to that now and I'd lose the lower price between now and April. I can't find what the variable rate tariffs are at the moment.

With the large increases predicted for next year are the above figures likely to be good?
 

depot

Well-known Member
@Lee My BG deal ends next week and there standard tariff is
Gas standing charge 26.123p per day unit rate 3.987p per kWh

Electric standing charge 23.770p per day unit charge 20.317p per kWh

The offer you have had is not bad, but of course you will have the much higher rate across the winter when you use it the most, Don’t think I would take the deal, but that’s a gamble to what happens next April.
 

Lee

Moderator
Thanks for that @depot As you say it doesn't look bad against your suppliers current standard tariff. It would be a really good tariff if prices were to rocket in April. I hate the thought of giving up the rate I'm on now and paying a load more for the winter.

There's no end date to the offer instead saying they can withdraw it at anytime.

Thanks again, more information gained to help make the decision.
 

depot

Well-known Member
Thanks for that @depot As you say it doesn't look bad against your suppliers current standard tariff. It would be a really good tariff if prices were to rocket in April. I hate the thought of giving up the rate I'm on now and paying a load more for the winter.

There's no end date to the offer instead saying they can withdraw it at anytime.

Thanks again, more information gained to help make the decision.

If you don’t mind me asking, who is your supplier ?
 

richp007

Distinguished Member
In hindsight I should have switched my mum away from Bulb months ago, but I left it because it suited her fine.

Will have to see what happens post-winter anyway. In the meantime she just won't be using as much gas and electricity as usual.
 

Richard19601

Well-known Member
Currently pay until April

Gas
Standing charge 15.66p
Unit rate 3.044p

Electric
Standing Charge 15.66p
Unit Rate 16.097p

I've been offered until April 2023

Gas
Standing Charge 22.47p
Unit Rate 4.18p

Electric
Standing Charge 22.74p
Unit Rate 19.72p

I have no idea what to do. Quite a large increase if I was to switch to that now and I'd lose the lower price between now and April. I can't find what the variable rate tariffs are at the moment.

With the large increases predicted for next year are the above figures likely to be good?
With the market as volatile as it is all the advice I've seen up until now is stay put .

I would stay with your current tariff and hold tight and pocket the savings this winter , my current tariff is due to expire next July and ive no intention of switching at all just yet.
 

mr starface

Well-known Member
So with the reduced amount of providers and a massive increase in price coming up am wondering how many people are going to suffer real financial hardship due to energy prices.

We already pay around £220 a month for our 3 bed semi, christ knows what this will go up to in a few months
 

Colin London

Well-known Member
So with the reduced amount of providers and a massive increase in price coming up am wondering how many people are going to suffer real financial hardship due to energy prices.

We already pay around £220 a month for our 3 bed semi, christ knows what this will go up to in a few months
It’s a very serious situation, hence why meetings are happening between the energy companies and the government about what is going to happen in April. However the reports of progress from those meetings haven’t been particularly positive so far. They are talking about some sort of loan which would reduce bills this year to be repaid in future years. But that plus other measures are not going to completely remove the extra pain.
 

neilball

Well-known Member
Hard to see what government can do unless they agree to suspend 5% VAT and the various non-energy surcharges until wholesale prices drop back again. But even then it will only reduce most peoples bills by a few hundred pounds, so will not make up for the 40-50% increase that seems likely in the next round of price cap increases.

So unless government introduce additional means-tested benefits for help with energy bills then those already in fuel poverty are going to be significantly worse off for another year or so. And everyone else is just going to have to plan to spend 1-2 months salary on their annual fuel costs.
 

brunation

Well-known Member
We already pay around £220 a month for our 3 bed semi, christ knows what this will go up to in a few months

Octopus are offering me a fixed-term loyalty tariff which for me is the equivalent of:

  1. 2 months on Oct 2021 capped rate.
  2. 6 months on April 2022 capped rate (assuming a 25% rise).
  3. 4 months on Oct 2022 capped rate (assuming a 25% rise).
I prefer knowing my outgoings so am considering their offer.

Edit:
That loyalty tariff has a gas rate of £0.0833 compared to my current of £0.0286 whereas the October 2021 capped rate is £0.0396.
 
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Colin London

Well-known Member
Just got my first bill since coming off a fixed tariff onto the government price cap. Only a few quid short of doubling between November and December! And this is before the April increases expected.

Of course this is now a flexible rate so changes with usage each month, whereas previously the cost was averaged across the year.
 
D

Deleted member 323322

Guest
Yep total joke

My business electric has gone up 75%

My home energy firm went bump so that will double

Why does electric double when its renewable
 

ih8mondays

Active Member
Yep total joke

My business electric has gone up 75%

My home energy firm went bump so that will double

Why does electric double when its renewable
Because quite a bit of electric is generated from gas turbines!

Sometimes it’s 50%

Right now it’s 17%
 

Tel69

Active Member
So with the reduced amount of providers and a massive increase in price coming up am wondering how many people are going to suffer real financial hardship due to energy prices.

We already pay around £220 a month for our 3 bed semi, christ knows what this will go up to in a few months
£220/month? How is that even possible? I pay £110/month for gas and electric for a 4 bed semi. That’s not right at all unless you’re paying back a lot of debt. The experts in our industry suggest the cap will increase by £50/£60 per month unless there’s Ofgem/Government intervention. That’s before we even get to the mess that is the supplier failures and their debts towards the industry that need to be paid back by the “consumers”.
 

Colin London

Well-known Member
£220/month? How is that even possible? I pay £110/month for gas and electric for a 4 bed semi. That’s not right at all unless you’re paying back a lot of debt. The experts in our industry suggest the cap will increase by £50/£60 per month unless there’s Ofgem/Government intervention. That’s before we even get to the mess that is the supplier failures and their debts towards the industry that need to be paid back by the “consumers”.
So I have a 3 bed semi and even on the Government Capped flexible rate, in December, it is £160. £220 does seem incredible - maybe has a home sauna or an EV?
 
D

Deleted member 323322

Guest
Biggest con going, smart metres, move everyone to electric dependancy then boom, plug your car in, oh heres your new car chsrging tarrif....
 

neilball

Well-known Member
So I have a 3 bed semi and even on the Government Capped flexible rate, in December, it is £160. £220 does seem incredible - maybe has a home sauna or an EV?
I use 18,000 kWh a year for heating/light/power before I take into consideration my EV car charging. And currently I now pay £0.21/kWh on the price cap. I was paying £0.12/kWh prior to my energy supplier going bust. So I was paying just over £2k/year (which is £300-£400 more than I have been paying over the previous decade), and this suddenly jumped to £3780 per year on the price cap. So this could become £5670 per year come April, so more than £3k per year increase in 12 months. That is the reality of the current energy market.
 

wormvortex

Member
I was paying £60-70 a month throughout winters until avro went bust. My December bill with eon has come in at £120 😳.

Interestingly it’s not actually the gas that’s hitting me it’s the electricity price. It seems the price of a unit is almost double what I was paying before.
 

mr starface

Well-known Member
£220 a month is what my new octopus smart meter tells me and broadly matches what Avro charged previously. around 90% of that is electricity.

We have 2 of us working from home full time plus heated floor downstairs, a Nas, Gaming PC that currently mines 24/7, home cinema plus a fair few electricals but had always seemed on the high side.
 
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NorvernRob

Distinguished Member
£220/month? How is that even possible? I pay £110/month for gas and electric for a 4 bed semi. That’s not right at all unless you’re paying back a lot of debt. The experts in our industry suggest the cap will increase by £50/£60 per month unless there’s Ofgem/Government intervention. That’s before we even get to the mess that is the supplier failures and their debts towards the industry that need to be paid back by the “consumers”.

Depends what equipment you run! I keep Snakes who’s vivariums are all individually temperature controlled. I currently pay £200pm (3 bed semi), which may just be enough over the year - my actual usage in December was £270, £190 of which was electric. I’m paying 19p per kwh, 3 months ago I was paying 11p and also running a hot tub for less than I pay monthly now!
 

a l e x

Distinguished Member
Can anyone explain to me, in simple terms, how the price cap is worked out?!

I currently pay £130 a month to Octopus and my deal runs out next month. They’ve just emailed me and the options are:

Octopus 12m fixed - £434 a month
Loyal Octopus 12m - £349

Loyal Octopus also says “It’s cheaper than anything available on the market”

It then says I can do nothing, move onto a variable tariff and pay £210.92.

How is the price cap worked out? Is that £210.92 the cap price or will it increase monthly? Seems a bit unethical to advertise a tariff as “cheaper than anything on the market” when it’s clearly cheaper to do nothing…
 

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