Conundrum - Fixed Tariffs

[cojmh]

I am amazed by the size of that charge to leave a tariff - and it would have to be an exceptionally good deal on the fuels to get me to take it.
My gas from Octopus/Coop tariff is 5.08 p/kWhr and elec 21.99p. Standing charges 26.6 and 23,5 p per day respectively but no penalty for leaving the 12-month fix at any time.
Have you looked at changing supplier? I know they say that there isn't much point at the moment, but all those prices are so high that I would check it out anyway.
A

I was amazed too ... but other tariffs are now up to £150 per fuel (so £300 total as opposed to £150) .... it is the trend at the moment.

Unfortunately most deals now are only for existing customers .... external customers can only get expensive deals (and I have been watching).

I don't like being on British Gas (although in fairness to them they are much better than when I was a customer a decade ago and vowed never to go back).

The only real options are sticking it out or this deal at the moment ..... I can only hasten my next steps to renewables really I think.

[Ken]

There are many tea leafs to read but lets not forget there is not a world shortage of gas just that we did not have enough forward contracts in place and so we now have to scramble around for gas but bear in mind the Uk has 1/2 its own gas. Also this is only a gas problem not a electricity one and even though we are exporting 15% of our production to the EU and wind is low we still have spare capacity even though coal is off the scene.

Gas futures have been dropping recently and are of the order of 2x pre covid levels. Gas tankers are queuing up to offload gas and the USA is shipping gas as fast as it can because a war without guns is a cheap war.

I note this morning that despite little wind and still exporting the Octopus Agile price dropped from its max allowed (35p/kwh - same as GO ). I take the Agile prices to be a proxy for day ahead grid supply so is a sure sign of grid prices dropping.

Dont panick Mr Manwaring !

[AE-NMidlands]

There are many tea leafs to read but lets not forget there is not a world shortage of gas just that we did not have enough forward contracts in place and so we now have to scramble around for gas but bear in mind the Uk has 1/2 its own gas. Also this is only a gas problem not a electricity one and even though we are exporting 15% of our production to the EU and wind is low we still have spare capacity even though coal is off the scene.

Gas futures have been dropping recently and are of the order of 2x pre covid levels. Gas tankers are queuing up to offload gas and the USA is shipping gas as fast as it can because a war without guns is a cheap war.

I note this morning that despite little wind and still exporting the Octopus Agile price dropped from its max allowed (35p/kwh - same as GO ). I take the Agile prices to be a proxy for day ahead grid supply so is a sure sign of grid prices dropping.

Dont panick Mr Manwaring !

but even though we have "our own" gas, isn't it is still the case that

a) 50% of our electricity is generated from it (just now, anyway) and
b) the generators (and, indirectly, domestic consumers) pay the world price for gas, regardless of where it comes from, plus
c) Europe trying not to use Russian gas is putting supply pressure on other sources - with ongoing cost implications.

I guess that it will become apparent that we are undergoing a step-change increase in the gas price, although prices will probably not stay at the maximum that has been seen.
We still need to get away from all fossil fuels as soon as we can, and I agree that the price shock and prices staying high will help drive what was needed anyway.
A

[Thebeeman]

Also I don't know if the standing charge will drop as I don't know over what time period the costs of the failed energy companies will be paid back over. And whether the cost of the failure of Bulb will be ultimately paid by taxpayers or bill payers as the liabilities there are equal or more than all the other failed companies put together. Its currently being paid through taxation but that might change, especially if unit prices finally drop next year. Then there is also more of the network charges being loaded onto the standing charge, I think there is another trance of those to go. Then we have the circa 11p per day increase from next April for 5 years to payback the compulsory £200 credit we are getting in October.

I'm under the impression that the increase in the standing charge was to cover the cost of "good" suppliers taking over the customers from the s**t ones.
HM Govt. is talking of reducing the standing charge and loading the unit rate to help the less well off and get the 'bigger' users to pay more based on the poor not using much energy, because they can't afford it.

[Stinsy]

I’ve been moaning on for years about how t he e standing charge is horribly regressive and how it should be negative (eg -£10 a month) paid for by a higher unit price.

HM government have been doing the opposite and cranking up the standing charge so that the poorest can pay for the failed business models of bankrupt energy billing companies.

[nowty]

I’ve been moaning on for years about how t he e standing charge is horribly regressive and how it should be negative (eg -£10 a month) paid for by a higher unit price.

HM government have been doing the opposite and cranking up the standing charge so that the poorest can pay for the failed business models of bankrupt energy billing companies.

OFGEM did a consultation a few years back (pre covid) and they decided to add more levies (network charges) on the standing charge because it was felt that the well off could avoid higher unit rate costs via solar panels and batteries.

Looks like in the past week OFGEM has been asked to reduce the standing charge but where is the cost going to be moved to ?