MSE News: Households urged to fix energy costs

MONEY_SAVVY_5

I switched to Ovo Energy, through this site, as they offered good prices. They are now offering customers 3% interest on credit balances - which seems a great idea. You can pre-pay, and get better interest than many bank accounts offer. HOWEVER, what would happen if Ovo went into administration? Is customers' money secure? Is it a good idea to pre-pay? Advice welcomed.

Pincher

Interesting, literally, as do you have to declare it on your tax return? Hopefully, they just do a discount amount so it doesn't show as interest.

savemoney

Haven't even seen a price decrease on BG tariff I am on. The last two reductions were for standard tariff

Premier_2

MONEY_SAVVY wrote: »

I switched to Ovo Energy, through this site, as they offered good prices. They are now offering customers 3% interest on credit balances - which seems a great idea. You can pre-pay, and get better interest than many bank accounts offer. HOWEVER, what would happen if Ovo went into administration? Is customers' money secure? Is it a good idea to pre-pay? Advice welcomed.

Other companies offer similar deals

e.g. Scottish Power have been offering 1 back for every £33 in credit (between £100 and £500) which was announced over a year ago; 3.03% interest.
They also offer 5% off for pay in advance.

http://forums.moneysavingexpert.com/showpost.html?p=33888101&postcount=2

Probably much less likely that Scottish Power would go bust compared to Ovo. In the unlikely event that SP did get into financial difficulties, I think someone would take them over rather than just let them fail.

I would go with whatever deal is cheapest and suits you (use a comparison site), rather than fall for such marketing gimmicks.

oxters

I am considering a tarriff switch rather than a provider switch. I have this quote from EDF who have been very good for the past 10 months.
Any advice welcomed. I am thinking of going for the fix till 2015 as I can only see prices going northwards in the next few years. Sorry - it's difficult to read as it didn't reproduce in table form

Tariff NameFuel TypePayment MethodAnticipated Gas Cost (per year)Anticipated Electricity Cost (per year)Anticipated Savings Against Current Prices (per year)How to Apply
Fixed Price 2015Gas and ElectricityMonthly Direct Debit£1235.46£1093.60£-565.06Call Us on 0800 092 8816*
Annual Fix Version 4Gas and ElectricityMonthly Direct Debit£1209.18£999.83£-445.01Call Us on 0800 092 8816*
StandardGas and ElectricityMonthly Direct Debit£1130.54£1008.05£-374.59Call Us on 0800 092 8816*
Fixed S@verGas and ElectricityMonthly Direct Debit£1136.97£985.67£-358.64Call Us on 0800 092 8816*
Energy SaverGas and ElectricityMonthly Direct Debit£1069.75£883.23£-188.99Call Us on 0800 092 8816*
Online S@ver Version 7Gas and ElectricityMonthly Direct Debit£1020.10

My current payments are
Current Electricity Supplier EDF Energy - Online S@ver Version 4 - Standard Domestic
Current Pay Method Monthly Direct Debit
Current Spend £ 62 per month [per year: £ 744.00; 9,031 kWhs]
Current Gas Supplier EDF Energy - Online S@ver Version 4
Current Pay Method Monthly Direct Debit
Current Spend £ 85 per month [per year: £ 1,020.00; 35,954 kWhs]
Future Payment Method Monthly Direct Debit

Gerrard_8_lfc

I went for a Variable (Scottish Power Direct 2012.) I think we will see a price decrease before another increase hence why I have opted for a cheaper tariff than a fix. The cheapest fix would have cost me £100 p/a.

kar999

Ditto... I went for the lowest variable rate (Coop) saving me c £100 p.a. with the biggest cashback (discount £50). Fixing would have only locked me into the higher rates.

lilac_lady

I cap my gas and electricity bills but it's so confusing I never know if that's the best solution.

One thing is certain, no matter if energy prices drop the consumer will still pay more.