Being off the gas grid...

galba

From the Telegraph today

http://www.telegraph.co.uk/finance/newsbysector/energy/5990150/Energy-suppliers-told-to-make-bills-more-accurate.html

"A ban on unjustified price differences will also come into force on September 1, preventing firms from overcharging pre-payment meter customers and penalising people who are off the gas grid, meaning they cannot qualify for dual fuel discounts."

I wonder how the suppliers will make this work - and will the comparison sites be able to cope with a 'notional' discount ?

Premier_2

Since dual fuel discounts are often very small in comparison (e.g. Scottish Power offer £10.50 p.a. duel fuel discount compared to up to £150 p.a. for prompt payment), this may suggest why it appears increasingly the case that dual fuel is not the cheapest option in many cases; buying gas & electricity from separate suppliers can often save more.

Perhaps the suppliers will just remove the notional discount currently applied to some dual fuel tariffs altogether, making 1 small step towards providing easy to compare tariffs.

... and not to mention allowing the suppliers the opportunity to gain a bit more money to fund the bubbly at the shareholders christmas party! :cool:

galba

£150.00 discount just for prompt payment...how do I qualify for that ?

I'm with SP and have to pay in advance for my electricity and generally have to pay for more than I actually use in any quarter. No discount for DD and a measley £10/year for paperless billing.

Premier_2

galba wrote: »

£150.00 discount just for prompt payment...how do I qualify for that ?

I'm with SP and have to pay in advance for my electricity and generally have to pay for more than I actually use in any quarter. No discount for DD and a measley £10/year for paperless billing.

Go on SP standard rate (or E7 equivalent), pay quarterly on receipt of bill

It's difficult if you opt to pay by cash, cheque, etc as you need to pay within 10 days of date on bill, yet the bill may not arrive until 7-9 days after it is dated :rolleyes:

Or pay quarterly on receipt of bill by DD - then you are guaranteed. £100 for gas, £50 for electricity. Applied quarterly pro rata.


...but do your calculations first. Rates for different tariffs vary. Just because there is £150 discount doesn't necessarily mean it will be cheaper than what you are currently on. Check the details on the SP website of their various prices.

Edit: actually, according to their tariff, the discount appears to be calculated on a daily basis and applied to the bill following the bill the prompt payment is received.
This means you won't receive any discount on your initial bill, and more importantly, will presumably miss out on any discount on a final bill (should you switch supplier) even if that final bill is paid promptly.

galba

Thanks - I'll check that option when it's time to switch.