Could capping prove a mistake?

jem16

Cardew wrote: »

Hi Jem,

It should be pointed out that your case is atypical.

As we discussed over the past couple of years, for some unknown reason EDF did not increase the prices on the particular version(3.1?) of the tariff for those ex-London Energy customers and those prices were well below other EDF customers and of course most(all?) other companies.

Yes you're right. However I didn't do anything special to get this tariff other than to check the comparison sites which I'm sure others could do as well.

Two other points;

Firstly, the tariff for Scotland(where Jem16 lives) on London Energy/EDF was particularly advantageous, and that advantage was greater than other areas.

True it was better for electricity although as a high user I can't have gained that much more than everybody else.

Secondly, your financial advantage is also because you have now switched to a capped tariff; so to a certain extent you are extolling the virtues of capping - but just get the timing right!!

Yes it looks like I did get my timing right, although the fix was for a year not 5 years as with the BG 2010 - nor are there any penalties should I wish to move. I also knew (with reasonable certainty) that EDF were about to put up their tariff. For a couple of weeks it looked like I had made the wrong move but they did put it up although a couple of weeks later than their main tariff.

However if I can do it so can others.

Much is guesswork. At the end of the next 20 months we'll see if Cardew or i made the right choice. I suspect it might end up even but that depends on what I can find over the next few months.

I did advise my son who has just moved into his first home to go for the Scottish Power 2011 fix (the better priced one which was pulled a few months ago). This was mainly down to the fact that as a new homeowner it would help him budget better over the next 3 years. Strangely enough it wasn't much more (at the time) than BG Click Energy 5 and did seem like good value. However that was on his usage - it wasn't good for me.

Looking at all the fixed/capped deals over the last few months would have meant an increase of at least 35% for me - no point.

Cardew

Jem16,

My point about your case being atypical was that you changed to London Energy(by using the comparison site and advice on here as I remember) as it was marginally cheaper for you in Scotland.

The stroke of luck you had was when EDF took over London Energy for some unexplained reason they didn't raise that version of the tariff in line with their other versions for a couple of years - just one rise in July 2007?. That simply could not have been forseen.

Had you or anyone else changed to another company(that may have been cheaper for the majority) they would not have enjoyed the 'advantage' you had for a couple of years.

jem16

Cardew wrote: »

Had you or anyone else changed to another company(that may have been cheaper for the majority) they would not have enjoyed the 'advantage' you had for a couple of years.

From the amount of posts that always cropped up here on London Energy(EDF) online 3.1 there were many who went the same route and enjoyed these great prices.

wakeupalarm

So have they now aligned the London Energy 3.1 prices with the rest of EDF prices or are they still lower? Because if Jem16 had stayed on that tariff she may still be getting lower prices for the next 2 years. Given the savings she made in the first 2 and bit years even now she may still come out way ahead of the BG 2010 tariff.

1carminestocky

I know Cardew doesn't particularly care for the concept but you should also factor in cashback for switching into any equation as to who has got the best deal. After all, as is often mentioned on here, this IS a moneysaving site. 3-4 switches could (effectively) reduce your fuel bill by up to £250 per year, in addition to the potential savings of switching to a cheaper tariff anyway. Over the course of 5 years the BG 2010 fix, with penalties for switching (the exact opposite of cashback, lol) it's entirely possible to 'reduce' your total fuel liability by a further £1,000+ by using this method.

That's why IMO you should be wary of nailing your colours to one particular energy company's mast, they are desparate for your business if you aren't with them, if you are effectively tied to them for 5 years (and they know you have to pay them to get away) I'm suspecting you are 'out of sight out of mind'. Total guess because I don't know, but I'm suspecting the 2010 5 year fix was introduced after a BG increase on their standard tariff? That seems to be their preferred tactic to suck people in.

jem16

wakeupalarm wrote: »

So have they now aligned the London Energy 3.1 prices with the rest of EDF prices or are they still lower?

They put them up 2 weeks after I officially changed over.

If I had stayed with EDF (London Energy) I would be paying 42.37% more than I am now. Most people on here changed from EDF 3.1 in the last few months because it was not competitive.

Given the savings she made in the first 2 and bit years even now she may still come out way ahead of the BG 2010 tariff.

Yes I may. A lot depends on what tariff I can get at the end of November when my price fix ends and of course what happens over the next 20 months.