offer to good to be true?

vygec

Right, we are with npower and have been for over 2 years, our current DD was as follows:
Gas £60
Elec £52

Now we had a rep from southern electric pop over last night, the deal he was proposing was VERY appealing, we went through all the prices, and the price per unit was less than half for both gas/elec.
as a result both DD were calculated as £30 each, these prices would be fixed until this point next year. i have a '7 day period' to decide if i wish to cancel, but i cant see any reason to cancel, have i messed up, or have i got a result here?
Ta.

Magentasue

If it sounds too good to be true ...

I wonder if you are comparing like with like - is the southern elec a standing charge tarriff? What are the kwh prices quoted?

Was the £30 each calculated from your annual usage? Do you know your annual usage? How much are you paying per unit with npower?

I'd be very wary unless the figures add up - door to door offers often lure with lower direct debits. However, you say unit prices are less than half which sounds interesting - could you post them?

vygec

currently im at work, so dont have the exact figures at hand. We are on the standard tarriff, but roughly npower gas charges 6.8p for first 450 units and then 3.5p for anything therafter, the offer from southern electric was 3.2p for the first 450 units, and 1.8p approx thereafter. the electric figures were pretty much the same.

ronniemcinnes

With Npower, have you been in credit by a vast amount every month or quarter. If not then how do you expect to be able to halve your DD payment and still be on level terms.
My experience with Southern Electric is where they cut down the DD only for us to be in £300 debt by the end of year.
so yes, I think it is too good to be true.
I realise you cant remember the exact figures, but 1.8p per unit seems very low for a standard rate.
the choice is yours, but I know I wouldnt go with them

shammyjack

vygec wrote: »

currently im at work, so dont have the exact figures at hand. We are on the standard tarriff, but roughly npower gas charges 6.8p for first 450 units and then 3.5p for anything therafter, the offer from southern electric was 3.2p for the first 450 units, and 1.8p approx thereafter. the electric figures were pretty much the same.

Southerns Standard Gas tariff is here
http://www.southern-electric.co.uk/ForYourHome/OurPrices.aspx

The rate you have been quoted is less than the Energyplus Careline tariff which is the lowest in the country so you are being spun a line !

shammy

notbritishgas

vygec wrote: »

Right, we are with npower and have been for over 2 years, our current DD was as follows:
Gas £60
Elec £52

Now we had a rep from southern electric pop over last night, the deal he was proposing was VERY appealing, we went through all the prices, and the price per unit was less than half for both gas/elec.
as a result both DD were calculated as £30 each, these prices would be fixed until this point next year. i have a '7 day period' to decide if i wish to cancel, but i cant see any reason to cancel, have i messed up, or have i got a result here?
Ta.

You have definitely been spun a line because Southern Electric do not have a fixed tariff!!
He may have confused you by offering the "Fixed discount " tariff, but this is not fixed, all it does is track the standard tariff at 2% lower.
I would double and triple check the prices because no one could undercut another company by half.
Just noticed another discrepancy, you say there are 450 primary units but the Southern website states 1143 per quarter or4572 per year.

SwanJon

and finally...
if you still want to switch, cancel the door to door one and sign up using a cashback site - tha way you get the 'commission'.