Should I switch now?

polkadot100

Hi guys,

I am looking to switch from a capped Scottish Power tarriff to web saver 8 (not capped but remains 3% under full price) or online discounted energy (more expensive than web saver 8 not capped but remains 4% under full price).

Do you this it is a good time to switch, don't want to switch and then the price shoots right up and I end up paying more than i was!

Thanks

Scottish_Power

Hi polkadot100

Couple of areas to consider here:

1. Does your current capped tariff have a cancellation charge if you come off it before the expiry date?

2. How much would you save annually by changing onto the OLE 8 or Discounted Energy tariff.

If you do not know what you consume annually, contact SP with your current meter readings and ask them to confirm what you use.

Once you have the answers to No. 1 and 2 you will be in a better position to decide whether its a good move or not.

Hope this helps. Let me know if you need any further assistance.

Kind Regards

Colin @ ScottishPower

polkadot100

Hi Colin, thanks for your reply. There is a cancelleation charge yes but our deal ends at end of Feb so I can change then. According to MS.com OLE 8 is the cheapest for us.

I have requested an up to date statement so we can see where we are with usage but it would be great if you could tell me how to work out what the cost would be on OLE 8 from our current usage.

What I was really asking though was whether it was a good time to come off a capped rate and onto a tarriff that will increase if energy prices go up.

Thanks

Scottish_Power

Hi polkadot100

The best way to work out what your annual charge would be on the OLE8 tariff is:

1. Contact us to confirm what your annual consumption is in kWh.
2. For electricity, the OLE8 tariff does not have a daily Standing Charge and instead has a Primary Rate and Secondary Rate. The Primary rate is for the first 225 kWh used per quarter, the Secondary rate is for the remaining units used. To get a rough idea of what your annual charge will be, calculate 900 kWhs at the Primary rate and then the remaining at the Secondary rate. Remember to include VAT at 5%.
3. For the gas, the Primary rate is for the first 1143 kWh used per quarter and the Secondary for the remaining units used. Again, to calculate your annual consumption, calculate 4572 kWhs at the Primary rate and the remaining units at the Secondary rate and include VAT at 5%.

If you agree to OLE8 or another similar tariff then you are only commiting yourself to this tariff for a short period of time (end of the year). Therefore you would not be losing much even if the prices were to rise within that time.

I am unable to confirm whether prices will rise or whether they will come down. There is a large difference between the capped rate tariff compared with non capped rate tariffs at the moment and in my opinion I would take advantage of the lower rates at the moment.

If you need any further information just let me know.

Kind Regards

Colin @ ScottishPower

polkadot100

Thanks for all your help Colin, have worked it out and made the switch. DD has been reduced by £28pm, great! :j