MSE News: This year's cheapest energy tariff launches - is it right for you?

Former_MSE_Darryl · 9 April 2014 at 5:09PM

"The cheapest energy tariff we've seen this year has launched today – it could take an average household's annual bill down to under £1,000...."

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This year's cheapest energy tariff launches - is it right for you?

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NPowerUser · 9 April 2014 at 5:43PM

Definitely right for me.

According to the Daily Mail :-

"Ovo Energy said it was cutting prices for the fifth time since the autumn because the wholesale price of gas has fallen by 9.5 per cent"

Begs the question, why the Big 6 are not cutting as well, not sure if its apathy as they know most people don't bother or just them wanting to keep more profits?

ConfusedofYorkshire · 9 April 2014 at 6:36PM

Can i get the cash back if i am moving house? it asks you for the current supplier's details- but obviously i would put in the details of the house that i am currently living in to calculate the cheapest deal for me. But that means if i go through the application form OVO will think that my current supplier are supplying the house that i am moving into- which i imagine would confuse the switch?

jobdone1 · 9 April 2014 at 7:20PM

Had a chat online with edf adviser regards their blue plus promise, She claimed they had Three excellent tariff's her words, I advised that even their blue plus 2015 is now way down the chart on energy comparison site's for competitiveness. I some how think she did not like the truth. I agree they are THAT'S THE BIG 6 dragging their heels. Well edf has lost my custom.

System · 9 April 2014 at 7:26PM

Already in the process of switching from EDF to OVO, just a shame I am too far down the line to get this even cheaper tariff!

molerat · 9 April 2014 at 8:12PM

For my usage it is second cheapest, admittedly only by a few pence, but is 5% dearer than single fuels.

Kitchen_Sink · 10 April 2014 at 9:27AM

No cheaper for me than the recent tariff introduced by First Utility.

And even that is beaten by another dual fuel supplier.

But taking single fuels from different suppliers saves me a further 5% on the total annual bill.

Bluebirdman_of_Alcathays · 10 April 2014 at 9:35AM

NPowerUser wrote: »

Definitely right for me.

According to the Daily Mail :-

"Ovo Energy said it was cutting prices for the fifth time since the autumn because the wholesale price of gas has fallen by 9.5 per cent"

Begs the question, why the Big 6 are not cutting as well, not sure if its apathy as they know most people don't bother or just them wanting to keep more profits?

For a start, suppliers with fewer than 250,000 customers don't have to pay certain taxes and levies, which puts them at a significant cost advantage. The Big 6 will never be as cheap as the rest.

You also correctly mention the apathy situation. Whilst I think energy is on the whole reasonably priced (compare what we pay to some of our continental neighbours), price elasticity of demand is undoubtedly so low that the Big 6 don't cut as much as they can. If you had a business and you knew that come hell or high water the majority of your customers wouldn't leave you, would you (or anybody) lower your prices?

brewerdave · 10 April 2014 at 10:22AM

I agree with Bluebirdman.................. but still seems amazing that with all the publicity over the last 2 or 3 years about fuel prices, there is still this huge chunk of public apathy.:eek:

Kitchen_Sink · 10 April 2014 at 10:37AM

As you say, prices do vary by region, but I've just done some comparisons for some of the regions and got some interesting results based on average consumption figures (which I believe are 13500kwh p.a. for gas and 3200kWh p.a for electricity)

East Anglia (where I live)
Cheapest dual fuel: ovo: £963pa, first Utilty: £965pa
Single Fuel: gas zog £513pa, elec FU £419 Total: £932pa
Saving over Ovo dual fuel: £33pa (3.4%)

East Midlands
Cheapest dual fuel: ovo: £977pa, Flow Energy: £983pa
Single Fuel: gas zog £511pa, elec Extra Energy £413 Total: £924pa
Saving over Ovo dual fuel: £53pa (5.4%)

West Midlands
Cheapest dual fuel: ovo: £983pa, Flow Energy: £992pa
Single Fuel: gas zog £513pa, elec Flow Energy £426 Total: £939pa
Saving over Ovo dual fuel: £44pa (4.5%)

London (Where MSE is based)
Cheapest dual fuel: ovo: £986pa, first Utilty: £987pa
Single Fuel: gas daligas £516pa, elec Extra Energy or Ovo £423 Total: £939pa
Saving over Ovo dual fuel: £47pa (4.8%)

Yorkshire
Cheapest dual fuel: ovo: £974pa, first Utilty: £978pa
Single Fuel: gas zog £510pa, elec First Utility £427 Total: £937pa
Saving over Ovo dual fuel: £37pa (3.8%)

Norweb
Cheapest dual fuel: ovo: £997pa, first Utilty: £998pa
Single Fuel: gas Daligas £516pa, elec First Utility £445 Total: £961pa
Saving over Ovo dual fuel: £36pa (3.6%)

(Source: energyhelpline.com, except London & Norweb regions which were sourced from energylinx.co.uk)

Got bored at that point, but I think you can see the emerging pattern.

So was this just lazy journalism by MSE?
Or perhaps clever journalism to promote Ovo who pays MSE referral fees for anyone using the MSE affiliate link in that article?

:cool:

drobe · 10 April 2014 at 10:48AM

Sorry, but we are currently unable to supply your region.

Not the cheapest for me.

MSE News: This year's cheapest energy tariff launches - is it right for you?

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