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  • FIRST POST
    • RiccyGonzalez
    • By RiccyGonzalez 12th Oct 17, 2:35 PM
    • 2Posts
    • 0Thanks
    RiccyGonzalez
    Am I the only one with a Lukewarm Feeling?
    • #1
    • 12th Oct 17, 2:35 PM
    Am I the only one with a Lukewarm Feeling? 12th Oct 17 at 2:35 PM
    Hi


    I have switched energy suppliers a few times now and the latest time, very much like other times I have been left feeling a bit lukewarm about the process and wondered if anyone else found the same.


    I had been pootling along paying a direct debit of around £120pcm for dual fuel when the MSE system alerted me to a saving so I switched to a new plan that, based on real consumption figures from my other supplier dropped my DD to around £112 so a not inconsiderable saving of nearly £100/yr. HOWEVER, I noticed that my old supplier continued to take money via DD at the same time for a period of 4 months. On investigation this was because I had a balance that had built up with my old supplier (in June?). This has resulted in me paying £928 over the last four months instead of the £480 I would have paid....kind of negates the saving really. I guess overall I'm better of as the energy needs paying for at some point but expect I'm due a hike in payments soon, but it leaves a bit of a sour taste when my main driver is to reduce my monthly outgoings......


    Any thoughts?
Page 1
    • Hengus
    • By Hengus 12th Oct 17, 3:07 PM
    • 4,369 Posts
    • 2,566 Thanks
    Hengus
    • #2
    • 12th Oct 17, 3:07 PM
    • #2
    • 12th Oct 17, 3:07 PM
    Hi


    I have switched energy suppliers a few times now and the latest time, very much like other times I have been left feeling a bit lukewarm about the process and wondered if anyone else found the same.


    I had been pootling along paying a direct debit of around £120pcm for dual fuel when the MSE system alerted me to a saving so I switched to a new plan that, based on real consumption figures from my other supplier dropped my DD to around £112 so a not inconsiderable saving of nearly £100/yr. HOWEVER, I noticed that my old supplier continued to take money via DD at the same time for a period of 4 months. On investigation this was because I had a balance that had built up with my old supplier (in June?). This has resulted in me paying £928 over the last four months instead of the £480 I would have paid....kind of negates the saving really. I guess overall I'm better of as the energy needs paying for at some point but expect I'm due a hike in payments soon, but it leaves a bit of a sour taste when my main driver is to reduce my monthly outgoings......


    Any thoughts?
    Originally posted by RiccyGonzalez
    You only pay for what you use at the agreed tariff rate. People confuse payments (monthly DDs) with charges. They are not the same. Monthly payments are nothing more than payments made on account. When switching it can happen that you end up paying two suppliers for a while whilst accounts are set up and closed. Any credit balance will be returned once the final bill has been raised.

    The only true comparison of costs is one based on your projected annual usage in kWhs/year. This will give you an annual cost and an approximate monthly payment. Use more: pay more.
    • RiccyGonzalez
    • By RiccyGonzalez 12th Oct 17, 10:36 PM
    • 2 Posts
    • 0 Thanks
    RiccyGonzalez
    • #3
    • 12th Oct 17, 10:36 PM
    • #3
    • 12th Oct 17, 10:36 PM
    Yes and my decision to switch was based on the actual consumption numbers
    • nic_c
    • By nic_c 12th Oct 17, 10:44 PM
    • 1,006 Posts
    • 583 Thanks
    nic_c
    • #4
    • 12th Oct 17, 10:44 PM
    • #4
    • 12th Oct 17, 10:44 PM
    So did you work out what your actual consumption figures would cost under your old supplier, and what you actually paid in DD before the switch?
    • Hengus
    • By Hengus 13th Oct 17, 8:39 AM
    • 4,369 Posts
    • 2,566 Thanks
    Hengus
    • #5
    • 13th Oct 17, 8:39 AM
    • #5
    • 13th Oct 17, 8:39 AM
    Hi


    I have switched energy suppliers a few times now and the latest time, very much like other times I have been left feeling a bit lukewarm about the process and wondered if anyone else found the same.


    I had been pootling along paying a direct debit of around £120pcm for dual fuel when the MSE system alerted me to a saving so I switched to a new plan that, based on real consumption figures from my other supplier dropped my DD to around £112 so a not inconsiderable saving of nearly £100/yr. HOWEVER, I noticed that my old supplier continued to take money via DD at the same time for a period of 4 months. On investigation this was because I had a balance that had built up with my old supplier (in June?). This has resulted in me paying £928 over the last four months instead of the £480 I would have paid....kind of negates the saving really. I guess overall I'm better of as the energy needs paying for at some point but expect I'm due a hike in payments soon, but it leaves a bit of a sour taste when my main driver is to reduce my monthly outgoings......


    Any thoughts?
    Originally posted by RiccyGonzalez
    Your mistake is in the word 'saving'. Suppliers/PCWs are required by their Ofgem to show savings in a particular and conflated way using a rolling 12 months projection which gives false information for consumers on fixed term contracts with less than 12 months to run.

    For example, your present contract costs you £960 per year. At the 6 month to go point, the supplier/PCW assesses you rolling 12 month's projection to be £480 on present contract plus 6 months on SVT at.say, £600 giving an annual cost of £1080. But under the 'Could you Pay Less' the supplier tells you that you could save £80 a year by switching to a new fixed tariff.

    It follows that you have to pay £40 more to save £80!

    In sum, ignore everything that appears on the statement/PCW re savings if you are on a fixed contract, and do a simple 'paying now for 12 months' compared to 'paying for 12 months on these tariffs' before making a decision.
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