Energy switch for first time

teaandcakeordeath

I was wondering if anyone could give me some advice?! I'm a first time home owner and when I moved in to my flat I stupidly just accepted the developers preferred supplier (naively thinking that of course they'll give me the cheapest deal...)

I'm currently on Scottish Power's extortionate online standard tariff (electricity only, my stupid flat doesn't have gas...) and I'm looking to switch. I've been on some comparision websites and the two cheapest suppliers for me are N-Power and E-On. I don't have economy 7 (I'm assuming that would only be useful if I had electric storage heaters rather than the ridiculous heaters I have..).

The question is am I better fixing with N-Power as they've already announced their price rises or should I gamble with E-On? The E-On tariff only fixes at 6% less than standard energy charges so I assume if I fix with them and their prices go up more than 6% then I lose out again?...

Thanks!:)

teaandcakeordeath

Any advice please?

Premier_2

If you want the assurance of a fixed price, go with the fixed price tariff.

If you are prepared to accept the possible variation in prices (either up or down) then go with the variable tariff.

Only you can make that decision.

4$£&*(£$&*(!

How long have you been in the flat? This should give you a pattern of your use, the problem with moving to a new home is knowing how much gas and electric you actually use. Put this into a comparison website and see what comes up.

This is the tricky part, you then have to switch to a tariff that is right for you and your habits. We are all different, so the headline rate at the top saying 'cheapest' is only the cheapest if you use it in the way the supplier intends you to use it. So some put in early termination fees, some fix, some cap, some are online deals (usually but not always the cheapest).

For instance a couple of years ago when prices were going through the roof I fixed at the right time, but there was a termination penalty. When the deal ended I realised I hadn't got the deal I had hoped for so decided to go back to online-only tariffs. I decided I wanted the freedom to leave when I chose so looked for an online tariff with no termination fees. I found the one I wanted and switched, it wasn't the rock bottom cheapest but if I wanted to go for the rock bottom cheapest they wanted £60 if I left within the first year.

Then my current switch, I am moving to EDF. This is because at the end of last year they offered a joining bonus and an assurance their online tariff was guaranteed cheaper than their standard tariff, they also said they won't increase their standard tariff until March. There is a termination fee, but the joining bonus (and cashback) I got more than outweighs the risk of them putting their prices up, so when they eventually do I can decide if it is economical for me to stay or not.

These are the sorts of decisions only you can make, do you want to fix knowing you will pay a little more than us hoping we will end up getting a price increase and you won't? Or are you happy surfing the 'bottom line' and taking a risk, knowing these are usually the cheapest but you have more work to do to keep on the cheapest long term?

My final bit of advice is when you find the cheapest, put in the top five in a cashback site like topcashback.co.uk and find out who is paying what cashback. This can also influence who you switch to, never use the comparison sites to switch they make a fortune in the cash you would otherwise get by going to the cashback sites. EDF paid me £80 just for using a cashback site rather than a comparison site.

teaandcakeordeath

Thanks for your help- am off to peruse the cashback websites now. I'd never have considered using one!

4$£&*(£$&*(!

You should make a pretty penny using cashback sites. Couple of bits to remember, there are several sites although I only use topcashback.co.uk as they don't charge any fees or percentages. Once you have done the comparison and found the cheapest supplier, clear all your cookies (best to delete all browsing history), this ensures the transfer is logged against the cashback site and not one of the price comparison sites. Also disable any pop-up blockers before clicking the referral link on the cashback site, it shouldn't make any difference but it did once to me so I use that as a golden rule now.

It can take a couple of days for the cashback to register against your name, then you could be waiting 2-3 months (possibly more) for your cashback but then anyone who has used a cashback site will know this. If you haven't used a cashback site before let me know - PM me your email address and I will send you a referral link that gives you some money and me some money too.

tessie_bear

That is very interesting
Thanks