Switching gas and electricity - help

gelato_cat

Hi all

I'm currently trying to switch my gas and electricity providers to get a better deal.

I've tried a couple of the switch sites and have calculated how many kWh I use on an annual basis because I use more gas in the winter to heat the house etc.

On both bills they charge different amounts for 1kWh depending on what time of day you use it. This is partly accounted for when the switch sites ask what % of time I spend on Economy 7.

So I click to go the next step and it's telling me I spend £389.05 on gas and £321.87 on electricity, which, combined, is £130 more than I actually spend. Then it's showing me all the wonderful savings I could make. (Both switch sites are coming up with the same amount in £.)

I've tried putting the annual costs in as well, which I know is less accurate, and it's giving me different results.

I really want to switch and save money but I have no confidence in the systems because they seem inaccurate. I don't want to get a nasty shock if and when I change providers.

Can anyone who has done this give me any advice? If it helps, I have never switched so am still with British Gas for gas and Powergen for electricity.

Suze

masonic

Have your prices risen at all in the last 12 months? Might that go some way to explaining why your energy is more expensive in todays prices?

gelato_cat

Yes, I believe BG put their prices up.

How do I get a true comparison then??

Suze

masonic wrote:

Have your prices risen at all in the last 12 months? Might that go some way to explaining why your energy is more expensive in todays prices?

masonic

Suzey wrote:

How do I get a true comparison then??

It is a true comparison. Prices are higher now, so the same amount of energy costs more than when you paid for it. You are no longer paying those prices.

If you stay with your current suppliers and use the same amount of energy this year, you will probably be paying close to what the switching sites estimate.

gelato_cat

Oh... :doh:

Doesn't the three-tier pricing come into it any then?

Suze

masonic wrote:

It is a true comparison. Prices are higher now, so the same amount of energy costs more than when you paid for it. You are no longer paying those prices.

If you stay with your current suppliers and use the same amount of energy this year, you will probably be paying close to what the switching sites estimate.

masonic

Suzey wrote:

Doesn't the three-tier pricing come into it any then?

'Three tier pricing' usually relates to electricity and happens when you are on a no standing charge economy 7 tariff.

You will have the usual day and night units, which correspond to the two different readings on your meter.

In addition, the first day units you use in a quarter are charged at a higher rate (this is in lieu of a standing charge) - it usually ends up costing exactly the same as a tariff with standing charges unless you are a very low user.

gelato_cat

Thanks so much. I'll plug my details in again tomorrow and switch

Suze

masonic wrote:

'Three tier pricing' usually relates to electricity and happens when you are on a no standing charge economy 7 tariff.

You will have the usual day and night units, which correspond to the two different readings on your meter - it is from this that you work out the % spent on economy 7 (the cheaper night units).

In addition, the first day units you use in a quarter are charged at a higher rate (this is in lieu of a standing charge) - this is of no consequence to the comparison.

tripled

I assume you do have an E7 meter (being as you have gas)? Also if you do, are you being billed at E7 rates or standard rates? Unless you have electric heating, it is quite hard to make a saving on an E7 tariff.

gelato_cat

I have an Economy Seven meter and am billed as such. Do I need to take this into account?

Suze

tripled wrote:

I assume you do have an E7 meter (being as you have gas)? Also if you do, are you being billed at E7 rates or standard rates? Unless you have electric heating, it is quite hard to make a saving on an E7 tariff.

masonic

Suzey wrote:

I have an Economy Seven meter and am billed as such. Do I need to take this into account?

You should see if it's cheaper without. Some suppliers let you move onto a non-E7 tariff without even changing your meter, so it's worth considering. You would probably have to switch to their E7 tariff initially, though, if you went through a comparison site.