Is your capped tariff ending? Article Discussion

gopherm

When i signed up to edf through energyhelpline.com i was given the chance to defer the switchover date by about a month to the end of september when my existing fixed account finished. this was to avoid the penalty fee for early withdrawal. I am now informed by energyhelpline.com that the deferment was only of the application going in to edf and then there is another 4 to 6 weeks before the switch!
This was not made clear to me at the time.
It now means that for the next month i am on a standard tariff with my old utility company.This should be made clearer to people to enable a proper decision to be made.All the customer is concerned with is the date of the application via the comparison site and the date of final transfer, nothing else is relevent. :mad:

energyhelpline_company_representative

Hi Gopherm,

I’m sorry you felt you were misinformed about the switch process on our website. Unfortunately, as you’ve found, an energy switch takes suppliers 4-6 weeks to process. Within that time your new supplier will tell your current one that you’re leaving, so if you’re on a tariff with an exit penalty at that time then you’ll be charged. Uniquely with our website, we give customers a choice of whether to send their application to their new supplier straight away and incur penalties, or defer sending it to avoid these penalties.

We signpost in a number of places across the site what will happen, to help you make the choice that’s right for you, and it should also be in your confirmation email. We’ve had lots of positive feedback about this option from customers as they find it quite helpful, but we’re always looking to make it clearer.

Although deferring your application means that you are rolled onto standard rates for the 4-6 weeks until your switch to EDF goes live, hopefully it’s made up for by the fact that you won’t be charged cancellation fees, unless you’ve got a really huge saving by moving to your new tariff! J

maxmiler

I cancelled the direct debit with SP after they ceased to supply me with electricity. 3 days later they sent me an email "there's a problem with your account". It was that I had cancelled my direct debit.
I replied that I had done this as I was no longer a customer, and that I had almost £300 of credit with an expected final bill of about £70. I also provided them with the final reading that I had given to my new supplier on the morning of change-over.
The response was "Your current payment plan is Quarterly Cash" and "We are in process of agreeing your final readings with your new supplier".
I wrote back stating that I was not on a quarterly cash tariff. Rather, I should be on a standard tariff. The response came : "We are in the process of closing your account and agreeing upon the final meter readings with your new supplier therefore, your account is in a default payment plan standard Quarterly Cash" and "Your service package was Capped Price Energy September 2011 which matured on 31st August 2011 and service package moved to standard".
The reply also thanked me "we are confident that you are making the right choices by choosing us" and "To make sure that you're receiving the best prices and benefits with us, please visit our website."

But I am no longer with SP, so I replied to the effect that the 2 paragraphs thanking me were somewhat confusing. They responded with an apology.

ALSO 2 days before the change of supplier SP sent a meter reader (I checked with him who he was taking readings for). Also, as I stated above, I also gave SP my final readings taken on the morning of change. I also sent these readings to my new supplier.
So SP have sent me a final bill with estimated final readings which are inaccurate. They also have based it on the wrong (dearer) capped tariff, even though the second email from them clearly states "standard".

And my new supplier has now had to send me a letter because there is a discrepancy with my final readings. They are waiting for the final reading from SP which is the wrong way round. SP should have based the final bill on readings from my new supplier.

So in summary, I find that SP are causing unnecessary confusion.

Sillychuckie

How early before the end of a fixed contract (WITH EXIT FEES) do people risk switching?

My contract ends on 31st October (~ 1 month away), but I have exit fees on my existing one.
Should I play it safe and wait until my contract has ended before switching, or kick off the switch now?

I'm aware that by waiting a month, I might miss some fixed tariffs that Martin warns are ending.
My parents are in same situation, but their contract ends in 2 months.

When is it safe to start a switch, and not get hit by the penalty? Or should I just wait, and accept that I might miss a few tariffs if they end over the next week or two? I want to avoid any early exit fee.

Thanks.
SC

scottme

Sillychuckie wrote: »

When is it safe to start a switch, and not get hit by the penalty? Or should I just wait, and accept that I might miss a few tariffs if they end over the next week or two? I want to avoid any early exit fee.

This is a tricky one. I'm on an EDF four-year fixed deal that ends next March. It carries a £30 early termination charge.

It's far and away the cheapest deal I could be on right now, but I am sure that some of the current crop of fixed deals will be gone by the time my current one ends. Depending on how much more expensive the tariffs have become by the time my current fix ends, it might be possible to save money over the long term by switching to the current best deal now, even allowing for the switching penalty.

I mean to see if I can create a spreadsheet that would allow me to calculate whether the idea is worth pursuing. Unless anyone has already done so?

solvent_saver

I have spent several hours comparing the implications of capped prices. Edf's freeeze till November 2016 would entail my paying an additional 9.36% per year (based on current variable rate and current consumption) starting today, IN ANTICIPATION OF any rises. It looks as though I should be better off paying the current rate. especially IF Milliband wins, and IF he keeps his 'promise' - two IFs.

EDF has no exit penalty.

What do others think?

scottme

Just been tinkering with a simple spreadsheet and discovered that if the best available fixed rate in six months time (when my current fix ends) is a mere 4% more expensive than the current best fixed rate (and I hear talk of 8% rises by year end), then I would save £10 a month or more over the next three years by switching now.

I'm now off to repeat the exercise with real life numbers rather than wet-finger-in-air.

(I'm ignoring the current hoo-hah about a possible future government possibly capping rates, because I just don't think it will come to pass.)

matelodave

If you wait for Mr millipede and his cronies then I fear you'll be very disappointed. You will have to decide whether an 8-10% rise (or even more) in the next month or so will be offset by £30 exit fee. ie will the rise cost you more than £30 - it's a gamble on who blinks first, you or the energy co.

NittyGritty

solvent_saver wrote: »

I have spent several hours comparing the implications of capped prices. Edf's freeeze till November 2016 would entail my paying an additional 9.36% per year (based on current variable rate and current consumption) starting today, IN ANTICIPATION OF any rises. It looks as though I should be better off paying the current rate. especially IF Milliband wins, and IF he keeps his 'promise' - two IFs.

EDF has no exit penalty.

What do others think?

ive also gone for a long fix,i saw the EDF 2016, but was more expensive oddly for me,so went with npower 2017 which is longer and works out a little cheaper , gives me peace of mind that there wont be any rises over the next 3 winters,
I cant see prices falling anytime soon if at all over the coming years. and even if they do I can always switch free of charge.

I'm glad i fixed now rather than risk it ending and ending up with a higher new fixed tariff coming out soon (yes another price hike under the guise of a new tariff)

SidP

My fixed tariff (which I assume is the same as a capped tariff?) ends on the 31st October. I don't have to pay a cancellation fee. According to Which? and Uswitch there are currently no comparable offers, and I will have to pay more regardless of who I switch to.

My first question is: when should I switch in order to minimise my extra payments? If I switch too early, I'll be on a more expensive tariff longer than necessary; but if I switch too late, I'll be on my supplier's standard tariff until the switch kicks in.

Second question: Is it possible to specify the switchover date in advance?