Energy Prices

[Todd_is_God]

I haven't seen a single fixed rate deal which costs less than the current price cap. The October cap won't be much different to where it is now so the only reason you'd even consider fixing atm is if you believe there will be a large jump in January.

There's no indication that's likely atm and, with European gas storage levels currently above 90%, it would take an unforeseen event to cause this.

Hopefully another uneventful winter might prompt an actual price "war" come next Spring but I think it's more likely that fixed price energy deals as a way to save a few pounds are a thing of the past.

[Salt n Vinegar]

Hi folks. Our energy deal comes up for renewal in under 2 months so I've started to look at what deals might be available.

I've used the uSwitch website in previous years, so made that my first point of contact.  As usual I filled out the form with our estimated usage and expected to see the usual alternative suppliers. I was surprised to be told "We don’t have any plans available at the moment. We’ll let you know as soon as we do."

Anyone else used uSwitch recently? Did you get more helpful results?

[Todd_is_God]

2 hours ago, Salt n Vinegar said:

Hi folks. Our energy deal comes up for renewal in under 2 months so I've started to look at what deals might be available.

I've used the uSwitch website in previous years, so made that my first point of contact.  As usual I filled out the form with our estimated usage and expected to see the usual alternative suppliers. I was surprised to be told "We don’t have any plans available at the moment. We’ll let you know as soon as we do."

Anyone else used uSwitch recently? Did you get more helpful results?

I don't think any price comparison sites are offering deals at the moment, primarily because there aren't any.

You'll almost certainly be better off letting your fixed rate expire and land onto the price cap.

[Pepper]

My fix is up next month and I plan on letting it default to the standard tariff.

 

 

[Todd_is_God]

On the Price Cap, actually, I note that the "Typical Usage" used to calculate the headline figure for October's cap uses lower kWh figures for Gas and Electric than previously. The reasoning for this (which I understand to a point) being that with people cutting back on gas usage in particular over the last 12 months, the typical usage amount has dropped and this change is to reflect that. They've not, as far as I can see, been too blatant at pointing this out however meaning many will likely expect the unit prices to drop more than they actually will.

In the context of people trying to budget for what their energy bills will be, changing the "Typical Usage" values at the current time is a bit disingenuous.

[Soapy FFC]

39 minutes ago, Todd_is_God said:

On the Price Cap, actually, I note that the "Typical Usage" used to calculate the headline figure for October's cap uses lower kWh figures for Gas and Electric than previously. The reasoning for this (which I understand to a point) being that with people cutting back on gas usage in particular over the last 12 months, the typical usage amount has dropped and this change is to reflect that. They've not, as far as I can see, been too blatant at pointing this out however meaning many will likely expect the unit prices to drop more than they actually will.

In the context of people trying to budget for what their energy bills will be, changing the "Typical Usage" values at the current time is a bit disingenuous.

The unit price should be the headline figure that is reported, only then should it say "for a typical user this could mean a bill of £xxx". I'm not a typical user and it's not always easy in the reports to actually find the unit figures so I can see how it will impact on me

[Todd_is_God]

28 minutes ago, Soapy FFC said:

The unit price should be the headline figure that is reported, only then should it say "for a typical user this could mean a bill of £xxx". I'm not a typical user and it's not always easy in the reports to actually find the unit figures so I can see how it will impact on me

Agreed, but I think these can vary slightly from region to region which is why it isn't.

The figures are available on Ofgem's website, though.

[RiG]

On 29/08/2023 at 10:36, Salt n Vinegar said:

Hi folks. Our energy deal comes up for renewal in under 2 months so I've started to look at what deals might be available.

I've used the uSwitch website in previous years, so made that my first point of contact.  As usual I filled out the form with our estimated usage and expected to see the usual alternative suppliers. I was surprised to be told "We don’t have any plans available at the moment. We’ll let you know as soon as we do."

Anyone else used uSwitch recently? Did you get more helpful results?

Have a look on Money Saving Expert. There are some fixed price deals which undercut the current price cap ever so slightly but some are typically only available if you are already with a specific provider. There aren't many deals out there at all.

[dundeefc1783]

Just had an email from Octopus. They are lowering the prices by 8%.

So now offering a 12 month fixed at the same price as their flexible price. Is it worth fixing for 12 months or am I as well staying on the flexible and take the risk prices don't go up? 

[Salt n Vinegar]

On 29/08/2023 at 12:42, Todd_is_God said:

I don't think any price comparison sites are offering deals at the moment, primarily because there aren't any.

You'll almost certainly be better off letting your fixed rate expire and land onto the price cap.

In case anyone is looking at the moment there's still no deals available on the uSwitch site.

[Soapy FFC]

17 hours ago, dundeefc1783 said:

Just had an email from Octopus. They are lowering the prices by 8%.

So now offering a 12 month fixed at the same price as their flexible price. Is it worth fixing for 12 months or am I as well staying on the flexible and take the risk prices don't go up? 

I just got that as well. For electricity the fixed rate is lot more than I'm currently on so it's a no brainer to stay on my existing tariff. For gas it's a bit more debatable as the tariffs are the same, but the fixed rate has a £75 exit fee. I'm just staying as is.

ETA: looking at it again, I don't have the option online to only fix one fuel, so it's a definite 'no' from me. And the exit fee is £75 per fuel.

 

 

Edited September 24, 2023 by Soapy FFC

[Salt n Vinegar]

On 29/08/2023 at 12:45, Pepper said:

My fix is up next month and I plan on letting it default to the standard tariff.

 

 

I'm looking at that too. I usually let the comparison sites do the thinking for me, so I hope I've got this right. 

The two deals on offer from my present provider (SO Energy) are slightly above the OFGEM October-December price cap.  That's for both cost per unit and the standing charge. The only thing that gives me cause for concern is that the price cap I'm considering reverting to only lasts 3 months. Any deals on offer in a few months will be coming on stream at the height of winter when there's no guarantee that the price cap will be as (relatively) attractive.

Decisions decisions.

[Todd_is_God]

5 minutes ago, Salt n Vinegar said:

I'm looking at that too. I usually let the comparison sites do the thinking for me, so I hope I've got this right. 

The two deals on offer from my present provider (SO Energy) are slightly above the OFGEM October-December price cap.  That's for both cost per unit and the standing charge. The only thing that gives me cause for concern is that the price cap I'm considering reverting to only lasts 3 months. Any deals on offer in a few months will be coming on stream at the height of winter when there's no guarantee that the price cap will be as (relatively) attractive.

Decisions decisions.

There really isn't much of a decision to be made tbh. We are well into the calculation period for the Jan - March Price cap and there has been little overall movement in the cost of buying gas since the start of it. The Price Cap overall is currently forecast to remain pretty much where it is until the end of next year (a marginal increase in January which will then be reversed in April) so the only way a fix in the current market is a good idea is if you can get one at a reasonable amount below the October Cap or believe there will be an unexpected shock causing the wholesale purchase cost to soar.

[s_dog]

Have a look at the forecasts for the price cap. It's down 7% in Oct but then expected to rise 6% in Jan, then potentially fall a couple of times (in Apr & Jul when you'll be using less) before rising again next Oct. 

https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/#accordion-content-0336620245-0

There's no big savings to make by fixing, but if prices increase unexpectedly, you'll be protected. So if certainty is important to you, it might be worth fixing. 

[Gnash]

On 23/09/2023 at 17:54, dundeefc1783 said:

Just had an email from Octopus. They are lowering the prices by 8%.

So now offering a 12 month fixed at the same price as their flexible price. Is it worth fixing for 12 months or am I as well staying on the flexible and take the risk prices don't go up? 

I've taken Octopus on their fix offer.  If the price cap moves in line with the current predictions I'll save during most of the next year, plus a wee Brucie bonus of 5 days this month at the cheaper price.  Roughly £80 saving I reckon, plus protection should the geopolitical situation go even more tits up.  Worse case, prices drop significantly and I'm no more than £150 worse off than I would have been sticking on the price cap.

[beefybake]

On 23/09/2023 at 17:54, dundeefc1783 said:

Just had an email from Octopus. They are lowering the prices by 8%.

So now offering a 12 month fixed at the same price as their flexible price. Is it worth fixing for 12 months or am I as well staying on the flexible and take the risk prices don't go up? 

I also received that email.  Rates are reduced, but standing daily charge remains the same.  You can cut consumption all you like, but the gouging from all these companies on the standing charges has become ridiculous.  In addition the quote for the fix was exactly the same as my current rate.

The fix also has a £75 penalty if you leave before time. That's quite the heaviest penalty I've ever seen on a fix.

Overall, very little about the fix is attractive to me, so I'll just stay on the standard variable for now. 

[TxRover]

Wondering what the “justification” for the standing charges are? Are they to cover the facilities/lines costs?
 

My charges here are per KwH, with a fixed transmission cost added to the energy company rate per (right now it’s about $0.036 to the transmission monopoly plus $0.09 to my provider). This transmission cost is the same for every provider and passed on to the monopoly company. Some contracts have a base monthly charge, but I’ve never seen over $6.95, and that’s kept by the provider for Admin.

[beefybake]

50 minutes ago, TxRover said:

Wondering what the “justification” for the standing charges are? Are they to cover the facilities/lines costs?
 

My charges here are per KwH, with a fixed transmission cost added to the energy company rate per (right now it’s about $0.036 to the transmission monopoly plus $0.09 to my provider). This transmission cost is the same for every provider and passed on to the monopoly company. Some contracts have a base monthly charge, but I’ve never seen over $6.95, and that’s kept by the provider for Admin.

If it's US Dollars you're referencing, I seem to recall from reading about the Texas debacle a while back.....

that the energy arrangements in the US were even more broken than the UK.

 

Oh, and then there was Enron.

[TxRover]

4 hours ago, beefybake said:

If it's US Dollars you're referencing, I seem to recall from reading about the Texas debacle a while back.....

that the energy arrangements in the US were even more broken than the UK.

 

Oh, and then there was Enron.

I agree it’s broken here, but the standing charges you pay seem excessive compared to what appears to be our equivalent charge, that’s why I was wondering if there’s another component of it I’m missing. The U.S. energy market is a mess with splits, inconsistencies, and wild swings in power costs. In the last five years my costs per unit for electricity have started at a near record low, almost tripled, and collapsed back to 50% above the lows…and are still moving a bit lower, with a surge expected for this winter.

[beefybake]

52 minutes ago, TxRover said:

I agree it’s broken here, but the standing charges you pay seem excessive compared to what appears to be our equivalent charge, that’s why I was wondering if there’s another component of it I’m missing. The U.S. energy market is a mess with splits, inconsistencies, and wild swings in power costs. In the last five years my costs per unit for electricity have started at a near record low, almost tripled, and collapsed back to 50% above the lows…and are still moving a bit lower, with a surge expected for this winter.

The short answer is, I think, that the government has given the nod for the sky-high standing charges as a means to keep the energy companies happy.

The underlying reality is that privatisation has failed.  And this is a symptom of it.