[JB1]

Hello,

Just re-neweled a 12 month tariff, (deal runs out 13th March) my monthly DD has increased 250% is this normal?!!!!

Should I stick to the Variable one thats "just" increased by 200%!?

Thanks for any help here, just turned everything off and bought some candles

John

[meldrewreborn]

Yes its the new normal - sky high prices. If you were to remain on a variable tariff for the April to September period, you could face further substantial increase from October 2022 when many people expect the rates to go even higher.

Nobody can be sure what is going to happen for sure, but those who study how the OFGEM price cap works, and given the evidence of market prices now in in recent weeks, predict that prices will rise again in October 2022 by a significant amount.

I'm afraid these are very personal decisions and its impossible to give you the certain answer that you seek - sorry!

[JB1]

@meldrewreborn My bill has gone up from £222 per month to £554 on a fixed 12 month tariff, are you saying that if I go with the variable rate it will go above £554 in October, that would be over a 300% rise in less than 12 months
Is it not better to try and go with the variable one now?

I am fully aware that my Gas will go up, especially if you are sourcing it from eastern Europe.

But what is really confusing all energy supplies including yourself are 100% renewable!!!! so unless I missed it on the news how can the hike in Electric prices have anything to do with any conflict??

[meldrewreborn]

@JB1

I don't work for anyone, let alone Eon!

You question fix/variable is, at the moment, impossible to answer with certainty - we must all make (and live with) the decisions we take.

The point on other forms of generating electricity other than gas is fully accepted. I suspect that the generating arms (as opposed to the residential supply arms) of some of the giants have been making excess profits - we will see.

[UKDave51]

@JB1 Surely that depends if you are in credit or debit. but no it`s not normal, my DD has gone up 45%

[meldrewreborn]

@UKDave51

It depends on what base you are working with and what new prices you are comparing that with. also Gas and electricity are increasing at different rates, so depending on your fuel usage mix the increases will vary.

I can be precise because my bills last year came to £841 (competitive fixed price deals) and my bill if the price capped rate for April to September 2022 applied for a whole year (which it will not as its a 6 month rate) would be £2400+ for the same level of consumption. That to me is indicative of a near 300% increase in my billing - trying to compare as far as is possible like for like. The picture is from OFGEM's press release. It shows the increase from the current price cap to the yet to be introduced cap from April. The increase is £694 on the previous rate of £1277. So the latest increase is just over 54%. but many of us had increases before that, because we were either on the previous price cap or on better still fixed rates.
Whether its normal or not is moot - it is the new normal. But increases in Direct debit can be massive for many.
Note too that the contribution for smart metering was £24 in the previous price cap and £18 in the New. Averaged over 12 months that's £21 everybody is paying for these useless bits of kit.