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
    • chev chelios
    • By chev chelios 11th Oct 17, 12:49 PM
    • 26Posts
    • 0Thanks
    chev chelios
    How does this make sense?
    • #1
    • 11th Oct 17, 12:49 PM
    How does this make sense? 11th Oct 17 at 12:49 PM
    I've just received an offer for a new energy contract. Despite the daily charge and unit price both going up (on both, gas and electric), they say my bills will be lower on this new tariff...




Page 1
    • Hasbeen
    • By Hasbeen 11th Oct 17, 1:04 PM
    • 911 Posts
    • 663 Thanks
    Hasbeen
    • #2
    • 11th Oct 17, 1:04 PM
    • #2
    • 11th Oct 17, 1:04 PM
    I've just received an offer for a new energy contract. Despite the daily charge and unit price both going up (on both, gas and electric), they say my bills will be lower on this new tariff...




    Originally posted by chev chelios
    Your bills will be lower because your current tariff will end/not exist and they will put you on the expensive standard tariff.

    Time to compare to get the best deal for you.
    • dogshome
    • By dogshome 11th Oct 17, 1:27 PM
    • 2,941 Posts
    • 1,498 Thanks
    dogshome
    • #3
    • 11th Oct 17, 1:27 PM
    • #3
    • 11th Oct 17, 1:27 PM
    It's all Smoke & Mirrors

    Due to Ofgems edict that forecasts of a 'Fixed Tariff' customer's future costs for the next 12 months, must be based on the cost of the Fixed Tariffs remaing term, plus the customer rolling over the onto the suppliers expensive Variable Tariff for the time remaining that makes up a year.

    Suppliers use this formula, then to say to customers "Hey, your bills are going to go up to £xxx+, but if you change now to this new tariff , it will be only £xx"
    If the customer isn't savvy and takes it at face value, he/she starts paying the higher price immediately, which is months before the presnt contract with lower prices ends
    • Hengus
    • By Hengus 11th Oct 17, 1:59 PM
    • 4,658 Posts
    • 2,829 Thanks
    Hengus
    • #4
    • 11th Oct 17, 1:59 PM
    • #4
    • 11th Oct 17, 1:59 PM
    It's all Smoke & Mirrors

    Due to Ofgems edict that forecasts of a 'Fixed Tariff' customer's future costs for the next 12 months, must be based on the cost of the Fixed Tariffs remaing term, plus the customer rolling over the onto the suppliers expensive Variable Tariff for the time remaining that makes up a year.

    Suppliers use this formula, then to say to customers "Hey, your bills are going to go up to £xxx+, but if you change now to this new tariff , it will be only £xx"
    If the customer isn't savvy and takes it at face value, he/she starts paying the higher price immediately, which is months before the presnt contract with lower prices ends
    Originally posted by dogshome
    Watch this space. Ofgem has revised its Confidence Code for PCWs;

    https://www.ofgem.gov.uk/system/files/docs/2017/08/august_decision_-_code_-_final_august_31_2017_0.pdf

    I have yet to wade through the pages of Ofgem speak.
    • chev chelios
    • By chev chelios 13th Oct 17, 8:50 AM
    • 26 Posts
    • 0 Thanks
    chev chelios
    • #5
    • 13th Oct 17, 8:50 AM
    • #5
    • 13th Oct 17, 8:50 AM
    Time to compare to get the best deal for you.
    Originally posted by Hasbeen
    My contract ends on the 30th November. When can/should I start looking? Can I pick my switch date myself? I've forgotten how it went last time.
    • Hengus
    • By Hengus 13th Oct 17, 8:59 AM
    • 4,658 Posts
    • 2,829 Thanks
    Hengus
    • #6
    • 13th Oct 17, 8:59 AM
    • #6
    • 13th Oct 17, 8:59 AM
    My contract ends on the 30th November. When can/should I start looking? Can I pick my switch date myself? I've forgotten how it went last time.
    Originally posted by chev chelios
    You will receive a letter/e-mail from your existing supplier to say that your fixed contract is coming to an end. Licence Conditions require this to be sent out in the 49 to 42 day period. You can then switch without fear of an exit fee,

    Not all suppliers allow you to choose the date of the actual transfer. If you want to ensure that you stay on your existing contract for as long as possible then delay the request to switch. Provided the losing supplier is notified in the period end of contract to plus 20 days BY INDUSTRY that a transfer is in progress then you will remain on your present tariff terms until the transfer goes through.
    • nic_c
    • By nic_c 13th Oct 17, 10:49 AM
    • 1,125 Posts
    • 640 Thanks
    nic_c
    • #7
    • 13th Oct 17, 10:49 AM
    • #7
    • 13th Oct 17, 10:49 AM
    Some suppliers have a switch guarantee on how long the switch will take. Some suppliers will let your old supplier know soon, some will wait until then 14 day cooling off period has gone before notifying.

    You can switch once that notice has been sent, as has been said, though as your current tariff has no exit fees not sure its relevant. It depends how late you want to switch, some will try and eek out as much of a cheaper tariff before switching where as others want peace of mind the switch has been done and concentrate on other stuff in life.
    • chev chelios
    • By chev chelios 13th Oct 17, 11:05 AM
    • 26 Posts
    • 0 Thanks
    chev chelios
    • #8
    • 13th Oct 17, 11:05 AM
    • #8
    • 13th Oct 17, 11:05 AM
    Yeah, I'll probably wait till towards end of November and monitor the news for any potential price increases.

    Funny how that table (from the offer they've sent me) says I have no exit fees, the tariff details in my account say something else...

    • badmemory
    • By badmemory 13th Oct 17, 3:30 PM
    • 1,063 Posts
    • 1,131 Thanks
    badmemory
    • #9
    • 13th Oct 17, 3:30 PM
    • #9
    • 13th Oct 17, 3:30 PM
    I suspect that may mean that you are passed the date at which they can charge you exit fees. This is either 41 or 49 days. I'm sure someone will confirm for you.

    ETA must be 49 days - 30 days of November & 18days of October!
    Last edited by badmemory; 13-10-2017 at 3:32 PM.
    • nic_c
    • By nic_c 13th Oct 17, 7:05 PM
    • 1,125 Posts
    • 640 Thanks
    nic_c
    Funny how that table (from the offer they've sent me) says I have no exit fees, the tariff details in my account say something else...
    Originally posted by chev chelios
    "that table" was based on you going onto the standard rate, hence no exit fee
    • chev chelios
    • By chev chelios 16th Oct 17, 9:24 AM
    • 26 Posts
    • 0 Thanks
    chev chelios
    Makes sense now
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

3,209Posts Today

5,597Users online

Martin's Twitter
  • RT @bearface83: @MartinSLewis check out the @Missguided new 60% off offer. Upping the cost of items almost double to make us think it?s a?

  • RT @efitzpat: Thank you SO SO much @MartinSLewis for your Student Loans refund advice! I just got a grand refunded right before Xmas! Whoop?

  • Have a lovely weekend folks. Don't do anything (fiscally) that I wouldn't do!

  • Follow Martin