Add your feedback on energy supplier Powershop

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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    fewkeste wrote: »
    I don't understand what you're getting at here - can you expand on this thought/logic please?

    Interesting idea about trying to 'fool' their systems to get a bigger discounted pack. Perhaps try it and see what happens. Maybe it might have been better to keep quiet about the idea, try it and see what happens;)
    I've got more than enough credit! £200 up... covers me so far ahead the app can't cope :rotfl:

    As for the previous post - They've got £150+ of credit stored up from many people, but it's not going to make them a great deal in interest/investment income.

    What I'd prefer (in their position) is a customer who signs up thinking it's cheap and knowing they've got the 1 year PowerShop Promise or whatever it is. But doesn't bother to buy cheap packs.

    After 1 year they get an email saying you saved £xxx compared to the markets cheapest (I wonder just how they work that out too....). Or, you haven't as you never bothered to buy a powerpack... BUT here you go, have £25 quid and be happy.

    Customer is happy with their £25 'credit' and stays, intending to buy powerpacks etc next year.

    Customer doesn't buy powerpack so pays essentially the SVR - which is where they will make their most markup.

    No doubt they'll make some markup on people like me and others on here who stock up cheap, but I doubt it's much. I think they'll grow their brand and customer base and use that to get better wholesale rates/tariffs etc. Then cut the powerpacks even more. Offer 'specials' here and there (e.g. mothers day, black friday etc etc) as a marketing gimmick, but essentially just become a regular supplier.

    Good value for some, average for others - especially if you can swap and get a cheaper fix with cashback or whatever.
  • fewkeste
    fewkeste Posts: 534 Forumite
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    Somerset_La_La_La wrote: »
    No doubt they'll make some markup on people like me and others on here who stock up cheap, but I doubt it's much. I think they'll grow their brand and customer base and use that to get better wholesale rates/tariffs etc. Then cut the powerpacks even more. Offer 'specials' here and there (e.g. mothers day, black friday etc etc) as a marketing gimmick, but essentially just become a regular supplier.

    I now understand what you're suggesting but I think your logic may be flawed. In general I think the kind of customer that Powershop attracts is one that is savvy - i.e. they know their annual consumption, they can do the calculations and they can see if they are saving enough money by buying the various types of Powerpacks throughout the year to be achieving the projected annual savings they were promised in the marketing literature. If they sense discounts are falling then I'm sure they will have enough about them to do comparisons and find a cheaper supplier PDQ.

    I know for myself that if my prices go up by less than 5% there is a cheaper supplier I can move to (that is not the Iresa clowns) that will then be cheaper for me in the East Midlands. I suspect most Powershop customers will be at the savvy end of the customer spectrum and so will take action (move) if they sense achieved discounts are falling.
  • griffb
    griffb Posts: 168 Forumite
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    fewkeste wrote: »
    I know for myself that if my prices go up by less than 5% there is a cheaper supplier I can move to (that is not the Iresa clowns) that will then be cheaper for me in the East Midlands. I suspect most Powershop customers will be at the savvy end of the customer spectrum and so will take action (move) if they sense achieved discounts are falling.

    Having done my own sums I know that at my predicted usage at the start of the contract (6700kwh) my break even point against the next best supplier is 14% discount. This drops to 13% if my usage stays low (ie neither of the kids moves back in) at around 6,000kwh. So at the moment I am only taking powerpacks at >12% discount. My only worry there is if that leaves me short over the 12 months before the winter discounts kick in again and I end up having to buy at standard rate. I am fully stocked to end August at the moment.

    Anyone else find that once the initial novelty of the model has worn off all this monitoring becomes a bit of a chore?

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  • System
    System Posts: 178,094 Community Admin
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    griffb wrote: »

    Anyone else find that once the initial novelty of the model has worn off all this monitoring becomes a bit of a chore?

    I would tend to agree with you. I switched away because, with a friends and family link, I was able to beat Powershop’s offer for electricity without having to pay a lot of money upfront. All I have to do now is read the meter once per month!
  • fewkeste
    fewkeste Posts: 534 Forumite
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    Hengus wrote: »
    I would tend to agree with you. I switched away because, with a friends and family link, I was able to beat Powershop’s offer for electricity without having to pay a lot of money upfront. All I have to do now is read the meter once per month!

    I find that now I fully understand how to run my account efficiently, it takes minimal effort to keep on top of things.

    Who did you find that works out cheaper than Powershop? No-one is cheaper than my Powershop Shopper achieved effective rate (I'm in the East Midlands)
  • ASavvyBuyer
    ASavvyBuyer Posts: 1,737 Forumite
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    edited 14 March 2018 at 1:33PM
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    fewkeste wrote: »
    Who did you find that works out cheaper than Powershop? No-one is cheaper than my Powershop Shopper achieved effective rate (I'm in the East Midlands)

    If you take into account "Friends & Family" referral cashback from Octopus or Bulb, it can easily work out cheaper than a lot of providers, if you are an average or below average user.
  • System
    System Posts: 178,094 Community Admin
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    fewkeste wrote: »
    I find that now I fully understand how to run my account efficiently, it takes minimal effort to keep on top of things.

    Who did you find that works out cheaper than Powershop? No-one is cheaper than my Powershop Shopper achieved effective rate (I'm in the East Midlands)

    I brigaded family members together and we went for a mass switch to Bulb late last year and shared out the ‘family and friends’ goodies. We have all recently switched to Octopus as it was clear a couple of months ago that Bulb was going to raise its prices. If suppliers want to make these types of offers, then it is silly not to participate.
  • fewkeste
    fewkeste Posts: 534 Forumite
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    Out of interest I just did a quick quote on Octopus and their cheapest tariff was approximately £300 per year more expensive than what I will pay with Powershop:eek: That's on 4800 kWh day & 3200 kWh E7.
  • Z0rba-cheeks
    Z0rba-cheeks Posts: 37 Forumite
    edited 14 March 2018 at 12:20PM
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    I have just been looking ahead at the Powershop estimates of my future consumption, which are available in the Phone App but not on "My account".
    I'm a very high user with an annual consumption of around 12,000kWh

    I have just emailed them the following question:

    "Hi,
    Please can you explain why the figures being shown in the Powershop App on my phone for the months October 2018 to Jan 2019 are showing an increase of between 26% & 50% on the actual usage for October 2017 to Jan 2018?

    My actual bills for the period were:

    October 2017 - £79.74
    November 2017 - £71.01
    December 2017 - £94.20
    January 2018 - £77.56

    Your current estimates for my bills in 12 months (2018/19) are as follows with the % increase on the actual costs for 2017/18

    October 2018 - £100.65 (+26%)
    November 2018 - £106.71 (+50%)
    December 2018 - £130.59 (+39%)
    January 2019 - £113.52 (+46%)

    Please can you explain the reason for the massive increase in the estimate, compared upon the previous actual.

    Is there an assumption in your that there will be an increase to the current tariff?"

    I'll let you know what they say in their response.
  • fewkeste
    fewkeste Posts: 534 Forumite
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    Z0rba-cheeks wrote: »
    Please can you explain the reason for the massive increase in the estimate, compared upon the previous actual.

    Is there an assumption in your that there will be an increase to the current tariff?"
    [/I]
    I'll let you know what they say in their response.

    Well spotted mate:T

    Your post caused me to look at the Powershop Android app and although most of the time it's difficult to do a direct comparison, it looks like from about August onwards we may well be faced with an increase of about 30%. Like you I'm going to ask them a straight question.

    I suspect it's either a straighforward increase in the standard tariff or an overall less generous discount on the Powerpacks or possibly a bit of both.

    I have to say it again - very well done indeed :j - this is exactly what these forums are all about - sharing knowledge. I check my PS account every day BUT on my laptop. It was only your checking of the app that showed this potential increase up.

    Interestingly, it's ironic that the app actually gives more useful information (the actual and projected monthly cost) than the PS website.
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