Sharp practice by the energy industry

I actually tried a very simple version of what that guy was doing on a very large scale.

I split my energy use into two groups. Summer use and winter use.

This technically makes sense as you use much less energy in summer due to less/no heating. Therefore for that period, a tariff that rewards low use makes sense and could be a lot cheaper.

You then switch to a tariff that is better for high use in winter.

Comparison sites are not geared for this calculation as they assume an annual KWH amount and apply 365 days for the standing charge. So you have to reduce the KWH amount to summer use and then subtract the number of winter standing charge days to get a result for summer use comparison only. A similar calculation is needed for winter.

The problem with this method is that you are restricted by the fact it is all down to market forces. If you switch off a good tariff for overall annual use for one that rewards very low use (so it may be cheaper for summer). When you try to find a new tariff when the next winter arrives (for high use) you are not guaranteed to get as a good tariff as you were originally on the winter before. This is especially the case at the moment where prices are probably going to go up and up.

In fact, I tried calculating the split use method and in total my saving was around £20 or something stupid (and I have very high winter use). Again, that was assuming I would be able to get those tariffs I compared with at the time I ended up switching tariff at a later date.

Furthermore, under the current switching time scales, it could all be a bit too much effort for little gain.

I say, under the current imperfect system, unfortunately, ensuring you are on the best tariff for your annual use, is the best and most time efficient method.

SammenForLivet2 wrote: »

Is it not Economics Class 101, Price Discrimination? Fundamentally, economics - offer discounts to those have the time/patience/determination to chase for a rock bottom tariff.

Exactly, exclude or make it difficult for those who are elderly, less educated, less informed, less computer literate.....and so on

Capitalism is about choice we are told....unfortunately...you end up with having so much "choice", it can be difficult to decide what to choose.

CashStrapped wrote: »

I actually tried a very simple version of what that guy was doing on a very large scale.

I split my energy use into two groups. Summer use and winter use.

This technically makes sense as you use much less energy in summer due to less/no heating. Therefore for that period, a tariff that rewards low use makes sense and could be a lot cheaper.

You then switch to a tariff that is better for high use in winter.

Changing twice a year would not be feasible, as most fixed tariffs now have early exit fees, which would cancel out any savings.

teddysmum wrote: »

Changing twice a year would not be feasible, as most fixed tariffs now have early exit fees, which would cancel out any savings.

Indeed, that too. I was going to put that in the post but I thought I was going into too much detail .