Comparison site tariff confusion

jd87

With all the new tariffs coming out the comparison sites are going to be raking it in, but I'm starting to think they're all just one big scam. Could someone help me understand this comparison from energy helpline for my parents usage?

Region: Midlands
Usage: 21000kWh Gas, 5400kWh Electric Annually.

Current Tariff:
EON Price Protection Oct 2009 (Pre 26 June 08)
Gas - 4.890p for the first 670 kWh per quarter, and 3.116p thereafter.
Elec - 18.480p for the first 225 kWh per quarter, and 10.584p thereafter
No standing charges.

Top New Tariff:
E.ON FixOnline No Standing Charge v3
Gas - 6.525p for the first 670 kWh per quarter, and 3.407p thereafter
Elec - 21.294p for the first 225 kWh per quarter, and 10.112p thereafter
No standing charges

The site says that this switch will give a £176 (13%) saving but I just don't see where that comes from. The gas is more expensive, the primary rate elec is more expensive, and the second rate elec is only slightly cheaper. Is it all in the discounts?

Can the sites be trusted? If I put in accurate usage numbers, can I just blindly accept what the site says?

Plushchris

It probably is in the discounts, that new tariff from E-on has discounts of up to 20% if its quoting a saving of 13% then the unit rates could effectively be 7% more than your current rates and still be 13% cheaper after the discount is applied.

Also the comparison will probably be based on your parents going onto the standard tariff once their cap has finished, to see the comparison based on the current tariff click on the red writing at the top of the page then click on the bottom link.

Hope that helps?

jd87

Plushchris wrote: »

Also the comparison will probably be based on your parents going onto the standard tariff once their cap has finished, to see the comparison based on the current tariff click on the red writing at the top of the page then click on the bottom link.

Didn't spot that. Thanks. Yeah comparing with the current prices it gives just a 7% saving which I think is a bit more believable.

Plushchris

jd87 wrote: »

Didn't spot that. Thanks. Yeah comparing with the current prices it gives just a 7% saving which I think is a bit more believable.

It is at the moment, but bare in mind that that only really applies until the cap runs out in october so the original comparison would be comparing against what it would cost if you parents did nothing and went onto the standard tariff.

I've been watching how this works as my sister is on a capped thats ending soon.