First:Utility iSave v9 dual fuel tariff - be careful

Consumerist

This tariff was described in the latest MSE newsletter as the market's cheapest deal but be very careful.

This is a variable tariff so they can up the prices any time after the first three months of fixed rates. If you then decide to switch, you will lose all your discounts which were included in comparison sites to make it look the cheapest.

The tariff is described on an energy comparison site as follows :-

Dual fuel discount of 13% payable annually after 12 consecutive Direct Debit payments (included in price displayed). The dual fuel discount is capped at £80 (inc VAT) for electricity and £100 (inc VAT) for gas. This discount is paid annually and is subject to a minimum spend of £600 per annum. Customers who leave within the first year will not receive these discounts.

My emphasis.

I regard this juicy-looking tariff with grave suspicion.

Possetjohn

Totally agree!

Exactly the reason I discounted it although it was by some way the best quote!

SnowMan

Good spot.

These discounts that come in after 12 months are a complete disgrace

The npower dual fuel go fix 8 advertised in the weekly email is another one with a catch. The weekly email says there is a £20 exit fee if you leave early. Well what about the loss of the £100 direct debit discount if you don't keep it running for exacly 12 months. My maths says that is a £120 penalty (100 + 20). So it probably needs to be run for a full year which allowing for the time to switch is around the end of the tarriff in February 2013.

Blindly use a comparison site and you don't realise of course and npower know that.

But the First Utility trick is even worse as it is not a fixed rate and you are defenceless against an increase in rates.

What these energy companies are being allowed to get away with is quite breathtaking. Why are Ofgem so incompetent in allowing this to happen?

Consumerist

SnowMan wrote: »

What these energy companies are being allowed to get away with is quite breathtaking. Why are Ofgem so incompetent in allowing this to happen?

As a point of information, Ofgem is apparently addressing this issue in their Retail Market Review but it remains to be seen how water-tight the end result will be for the consumer.

As a matter of opinion, I agree it's outrageous.

flashnazia

I can feel it pulling me in though - the rates are so attractive...

Consumerist

flashnazia wrote: »

I can feel it pulling me in though - the rates are so attractive...

. . . at the moment.

Will the annual cost be as attractive if you add back the 13% discount which you could lose if you switch before the end of contract?

On the other hand, if their rates don't increase until, say, next winter, you could still do well out of it.

At least you'll be going in with your eyes wide open; others may not.

smiler2

I have no problem with First Utility, so long as you understand the tariff and discounts, I just started the switch yesterday as recommended via moneysupermarket so I will have:
1. A £55 cashback even if I am not with them for 12 months
2. No exit penalty to switch if energy prices drop next year, possible as wholesale prices are supposed to be low again.
3. I will call EDF who already said they will freeze my rate at EDF online s@ver7 rate post Dec 31st until the switch completes, so I get 1-2 months extra at the old (good) rate, then the switch should occur I guess in Feb some time.
4. My gas/electricity rates will be fixed with First Utility for 3 months after that, so this winter will be done and who cares about the rate when I am not using energy.
5. Staying with EDF would see my bills rise 17% even with EDF discounts. 6% discount for dual fuel DD etc
6. As I survived poor customer service from EDF for one year, I hope I can survive with First Utitlity, by all accounts not perfect as well.
7. I stand to pay 2% less for energy than last year if no rises and I say 12 months, if they do increase the price I will switch again if better rates are available and use the hold the olld tariff until I switch game with them as well.
8. Even if I lose the 12 month discount, I am still saving 11% + compared to staying with EDF.

So I can forget about energy now until either a nice rate shows up next year and switch or stay with First Utility if they turn out ok.

Not too bad from my point of view.

Figures:
Gas: 30,000 kWh pa (bit high as old boiler 26yrs, 50% efficient, wait until it dies before I replace it, as new boiler payback time is 10yrs=life of new boiler !)
Electricity: 3,600 kWh pa (This is low as I have Solar PV installed... hehe)

working

smiler2 wrote: »

...
1. A £55 cashback even if I am not with them for 12 months

Are moneysupermarket offering £55? I checked last night and it was £25?

working

Ts and cs:

The dual fuel discount of 13% capped at £80 for electricity (inc VAT) and £100 for gas (inc VAT) will be illustrated as a credit on the customer’s bill at the annual anniversary the electricity has been on supply with First Utility. Should the customer leave First Utility within this period they will lose their dual fuel discount and the prices they pay will be higher than the prices they were quoted when they switched to First Utility. First Utility reserves the right to withhold or reclaim any discounts paid if your total spend in any year is less than £600 inclusive of VAT.

The bold bit is a bit scary. I assume it means the prices will be higher because the dual fuel discount is not applied but it could also mean the price will be higher than the unit prices quoted.

smiler2

working wrote: »

Ts and cs:

The dual fuel discount of 13% capped at £80 for electricity (inc VAT) and £100 for gas (inc VAT) will be illustrated as a credit on the customer’s bill at the annual anniversary the electricity has been on supply with First Utility. Should the customer leave First Utility within this period they will lose their dual fuel discount and the prices they pay will be higher than the prices they were quoted when they switched to First Utility. First Utility reserves the right to withhold or reclaim any discounts paid if your total spend in any year is less than £600 inclusive of VAT.

The bold bit is a bit scary. I assume it means the prices will be higher because the dual fuel discount is not applied but it could also mean the price will be higher than the unit prices quoted.

Again timing is everything, for me, as I started the switch now, with my normal energy use over coming (winter) months, I will have used £600 of energy with them by the end of the 3 month fixed price period..still a winner..

Also it would take a 25-30% tariff increase for the remainder of the year for me to be worse off than staying with EDF, possible but not too probable.

phil1_2_1

Looking forward to getting my £160 chq From First Utility