Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • zaax
    • By zaax 8th Oct 16, 4:08 PM
    • 1,666Posts
    • 647Thanks
    zaax
    Sharp practice by the energy industry
    • #1
    • 8th Oct 16, 4:08 PM
    Sharp practice by the energy industry 8th Oct 16 at 4:08 PM
    http://www.bbc.co.uk/news/business-37587231

    They are all in to together.

    http://www.bbc.co.uk/programmes/b07x12lz

    Have you tried to find the energy tariffs for the suppliers on their website?
    Do you want your money back, and a bit more, search for 'money claim online' - They don't like it up 'em Captain Mainwaring
Page 1
    • worried jim
    • By worried jim 8th Oct 16, 4:51 PM
    • 7,693 Posts
    • 11,342 Thanks
    worried jim
    • #2
    • 8th Oct 16, 4:51 PM
    • #2
    • 8th Oct 16, 4:51 PM

    Have you tried to find the energy tariffs for the suppliers on their website?
    Originally posted by zaax
    No, I just use do a whole of market search using a comparison site and then switch to the cheapest every September. Keep it simple.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • CashStrapped
    • By CashStrapped 8th Oct 16, 6:30 PM
    • 855 Posts
    • 477 Thanks
    CashStrapped
    • #3
    • 8th Oct 16, 6:30 PM
    • #3
    • 8th Oct 16, 6:30 PM
    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.
    Last edited by CashStrapped; 10-10-2016 at 7:16 PM.
    • SammenForLivet2
    • By SammenForLivet2 9th Oct 16, 1:32 PM
    • 525 Posts
    • 543 Thanks
    SammenForLivet2
    • #4
    • 9th Oct 16, 1:32 PM
    • #4
    • 9th Oct 16, 1:32 PM
    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.

    Might sound sad, but we do live in Capitalist society. And, whilst the nation might hate to think it, energy firms aren't the most profitable firms out there in the market for investors.
    Thank you all for helping me make my day by saving money!
    Although I work in the trenches for a residential energy supplier, any views, opinions or ideas are my own, and don't represent the views of my employer.
    • CashStrapped
    • By CashStrapped 9th Oct 16, 9:43 PM
    • 855 Posts
    • 477 Thanks
    CashStrapped
    • #5
    • 9th Oct 16, 9:43 PM
    • #5
    • 9th Oct 16, 9:43 PM
    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.
    Originally posted by SammenForLivet2
    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.
    • teddysmum
    • By teddysmum 10th Oct 16, 2:29 PM
    • 5,805 Posts
    • 3,426 Thanks
    teddysmum
    • #6
    • 10th Oct 16, 2:29 PM
    • #6
    • 10th Oct 16, 2:29 PM
    http://www.bbc.co.uk/news/business-37587231

    They are all in to together.

    http://www.bbc.co.uk/programmes/b07x12lz

    Have you tried to find the energy tariffs for the suppliers on their website?
    Originally posted by zaax


    If you mean NPower prices on the NPower site, BG prices on the BG site, then yes I do , every year,as comparison sites don't give the true picture, as they base 'savings' on standard tariff, which those doing swaps don't use.
    • teddysmum
    • By teddysmum 10th Oct 16, 2:32 PM
    • 5,805 Posts
    • 3,426 Thanks
    teddysmum
    • #7
    • 10th Oct 16, 2:32 PM
    • #7
    • 10th Oct 16, 2:32 PM
    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.


    Originally posted by CashStrapped


    Changing twice a year would not be feasible, as most fixed tariffs now have early exit fees, which would cancel out any savings.
    • molerat
    • By molerat 10th Oct 16, 6:32 PM
    • 15,018 Posts
    • 9,374 Thanks
    molerat
    • #8
    • 10th Oct 16, 6:32 PM
    • #8
    • 10th Oct 16, 6:32 PM
    If you mean NPower prices on the NPower site, BG prices on the BG site, then yes I do , every year,as comparison sites don't give the true picture, as they base 'savings' on standard tariff, which those doing swaps don't use.
    Originally posted by teddysmum
    Why do you need to know how much you will save, knowing how much you will spend is sufficient surely ? Both CEC and EnergyHelpline give the "true picture" and allow you to compare against current tariff annual cost.
    www.helpforheroes.org.uk/donations.html
    • CashStrapped
    • By CashStrapped 10th Oct 16, 7:15 PM
    • 855 Posts
    • 477 Thanks
    CashStrapped
    • #9
    • 10th Oct 16, 7:15 PM
    • #9
    • 10th Oct 16, 7:15 PM
    Changing twice a year would not be feasible, as most fixed tariffs now have early exit fees, which would cancel out any savings.
    Originally posted by teddysmum
    Indeed, that too. I was going to put that in the post but I thought I was going into too much detail .
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

239Posts Today

1,451Users online

Martin's Twitter