To Switch or not to switch??? - What would you do???

Simon7685

Ok Guys

Have done all the comparison sites, looked at all the tariffs and cashbacks available. Switching is a no brainer in my situation following the ending of my B Gas Essentials tariff on 29 September.

We are all electric Economy 7 with annual consumption of 13556:eek: This is however much less than it used to be and even more savings have been implemented to save even more:D. Our night usage on Economy 7 accounts to 70% of annual use at 9489KW/H.

Scottish Power is the obvious company to me but do I go for the January 2014, no cancellation fee, or gamble on the November 2014, with a £30.64 cancellation if ended early?????

The difference between the 2 amounts to £4.83 a month based on monthly direct debit. this could well pay for itself by covering me during Jan - Nov 2014 though, as my peak usage is Jan - April.

My gut feeling is to cap until Nov 2014 but the no cancellation charge on the other tariff is very appealing too.......

So my question is simple....... What would you do in my position???

Simon7685

Well I at least thought that one or two people on here might of given their thoughts on what they thought was the best option after 6 hours!!

Most people usually seem to have an opinion on MSE, maybe it was just something I said? Or nobody gives a damn? Either way never mind perhaps I should just keep my own council when it comes to answering other peoples questions in future:(

macman

A bit impatient?
But since no one knows which way prices are going 6m ahead, let alone 24m or more, it's impossible to answer your question.
The longer tariff gives you the insurance of a fixed price for longer, and that's what you are effectively paying a premium for. Only you will know if that is a price worth paying.

JJ_Egan

Simon7685 wrote: »

Well I at least thought that one or two people on here might of given their thoughts on what they thought was the best option after 6 hours!!

Most people usually seem to have an opinion on MSE, maybe it was just something I said? Or nobody gives a damn? Either way never mind perhaps I should just keep my own council when it comes to answering other peoples questions in future:(

I would have answered earlier but i was not here .

My thoughts on switching are .
If you believe prices wont rise then don't lock yourself in . If you do lock in then you want one with the least penalties as well as a cheaper price .
But penalty payments suggests a switch of contract due to price drop .

My own choice for many years is to lock in at end of one contract for as long as possible . Choice of contract is via price comparison sites and tariffs given .
Stay Warm to Scottish Power price cap to BG price cap to EDF price cap .

Simon7685

JJ as you say your choice is to lock in as long as possible at the end of each contract, can I ask you if you have ever lost out doing it?

I know I have to switch supplier because B Gas are just too expensive now the Essentials is ending, which has been a fantastic tariff for me. I think its just the thought of locking in for 2 years worries me a little against the freedom to switch. I honestly can not see prices falling in the next 2 years to such a level that I would lose massively on the deal. In fact I can only see prices rising over the coming months.

I guess I could look at it as the penalty would only be £30.64 to fix for 2 years and I will get £21.20 cashback on the switch so in reality it will only cost me under a tenner overall to get myself out of it.

Simon7685

macman wrote: »

A bit impatient?
But since no one knows which way prices are going 6m ahead, let alone 24m or more, it's impossible to answer your question.
The longer tariff gives you the insurance of a fixed price for longer, and that's what you are effectively paying a premium for. Only you will know if that is a price worth paying.

Sorry I didn't mean to sound impatient, I am just concerned that if I don't sort this very soon the offers are likely to get pulled. I know nobody knows how prices are going to go, what I was trying to get was an idea of what other people would do in the same position.

This is a massively important time for me with the social tariff ending and means massive energy hikes even without a price rise. I know it is my choice but it helps to know how others would react.

victor2

I have used fixed tariffs for about the last 6 years. Have always been ahead of the game by the end of the tariff with an inevitable increase even if I go to the cheapest variable tariff available.
Have already got a fixed tariff lined up for the next 2 winters, thanks to the now withdrawn EDF fixed tariff. They have driven me crazy with their constant DD recalculations, but over the last year I've learned how to work with them, so will try the new tariff, which has no exit penalty, so that was a bit of a no brainer.

Have a bit more patience next time!

molerat

I took a "premium price" fix and I believe it did cost me more than locking in to a shorter term cheaper fix.

vickyanne_2

We're on an online tariff with Scottish power, got economy 7 (energy saver4). Been through all the comparison sites and checked on SP site and a fix is at least 10% more. So do I fix or not???? We've always done well out of a variable online tariff in the past but does anyone have any idea of the likely increases in the next year or so?

JimmyTheWig

Simon7685 wrote: »

JJ as you say your choice is to lock in as long as possible at the end of each contract, can I ask you if you have ever lost out doing it?

Some would say that you can't lose out on a fixed price tariff as you know the price you'll be paying throughout the deal.

Personally I wouldn't be worried about the exit fees. If prices drop dramatically then it would be worth paying the fees to exit. If they don't then you'll have made the right choice anyway.

The £4.83 a month extra might put me off, though. What sort of percentage extra is this? I.e. what's your monthly bill?

macman

vickyanne wrote: »

We're on an online tariff with Scottish power, got economy 7 (energy saver4). Been through all the comparison sites and checked on SP site and a fix is at least 10% more. So do I fix or not???? We've always done well out of a variable online tariff in the past but does anyone have any idea of the likely increases in the next year or so?

We have no idea, if we did we'd all, jump the same way.
As I have pointed out before, it's not whether you fix (or not) that matters, it's the rate that you fix at.