Time to Switch

~daisy~_2

ho simple and easy is it to switch ??

using a comparison site - it says i could save £200 a year but is it really as straightforward as everyone says ??

chools

Dual fuel, direct debit, and paperless billing will often give the consumer the cheapest price - but beware if and when you switch (And even if you don't) that all companies in my experience set the direct debit amount too high meaning that your money is in their bank account way and above the energy costs that you actually use (Is this why they make DD an attractive option in terms of cost?)
If you really need to lodge money somewhere for winter bills than open up a savings account - at least you will get the interest rather than the energy company!
The usual excuse if you contact them is that they want you to build up a balance for winter bills, stops them being a shock as your money is in their bank - hmm.
All the energy companies I have been with will (If you insist) refund any outstanding balance to your bank account and adjust your direct debit downwards (they often ask 'what amount would you suggest' - so be prepared). Just say you are happy to pay your bills but don't want to use them as a bank (They won't pay you interest on the credit!)

Cardew

chools wrote: »

- but beware if and when you switch (And even if you don't) that all companies in my experience set the direct debit amount too high meaning that your money is in their bank account way and above the energy costs that you actually use (Is this why they make DD an attractive option in terms of cost?)

Welcome to the forum.

I don't know how extensive your experience is with Utility Companies; however the Regulator(ofgem) does not agree with you.

The Utility companies are owed far more in debit balances than they have in credit balances, acording to the Regulator. In fact according to a British Gas employee who posts on this forum BG are owed £xxx Million. This is because DDs are set too low.

If you read this forum you will find hundreds of complaints(about all Utility Companies) where the DD was set far too low as an inducement to get them to sign for that particular company; and many end £hundreds in debt.

Contrary to your point, I suggest and inexperienced new customers need to be very wary of the DD set initially and check their account and meter reading frequently; unless you are happy to receive an effectively interest free 'loan'.

dc

Years ago BG (when there was only BG) used to set monthly payments high and invariably customers were "treated" to annual refunds.
Some of my neighbours were very happy with this as they used it as a "savings" account for things like holidays.

I think the arrears incurred by the utilities at present, have been caused by the rapid rise in prices, plus their (utilities) poor adminstrtion and resultant lack of rescources to update DDs speedily.

In a climate of falling prices expect the reverse.

Cardew

dc wrote: »

Years ago BG (when there was only BG) used to set monthly payments high and invariably customers were "treated" to annual refunds.
Some of my neighbours were very happy with this as they used it as a "savings" account for things like holidays.

I think the arrears incurred by the utilities at present, have been caused by the rapid rise in prices, plus their (utilities) poor adminstrtion and resultant lack of rescources to update DDs speedily.

In a climate of falling prices expect the reverse.

I would agree with all that; however I would add one other significant factor for those initially setting up an account or changing supplier.

Almost every utility company call centre, ‘cold calling’ salesperson, and every comparison site will quote an unrealistically low DD to get you to change supplier; to get their commission.

Obviously anyone who understands gas/electricity tariffs will not be duped; but the majority seem not to understand.

Ring any company/comparison site and tell them you pay £xx a month to company Y and they will quote a lower figure with company Z.

Terrylw1

dc wrote: »

Years ago BG (when there was only BG) used to set monthly payments high and invariably customers were "treated" to annual refunds.
Some of my neighbours were very happy with this as they used it as a "savings" account for things like holidays.

I think the arrears incurred by the utilities at present, have been caused by the rapid rise in prices, plus their (utilities) poor adminstrtion and resultant lack of rescources to update DDs speedily.

In a climate of falling prices expect the reverse.

I understand where you are coming from becsuse my mum tends to say the same "it's nice when you get something back". Thats up to the individual.

However, it everyone did that to you, how much money would you have tied up with everybody. That money could be in your bank account earning interest or have been paid against your mortgage saving you interest that you would have paid.

I used to work for a mobile telecoms company that you see advertised on TV everyday 9 years ago. They used to deliverately hold back on customers security deposits and wait for the customer to ask for it back. I used to have to deal with complaints about that for the MD and I spent hours trawling through several accounts with several hundred thousand pounds in each.

So the question is, do you want them earning tons of interest on your hard earned cash or would you want to? Remember that their customer service & admin as you point out is pretty poor so why should they benefit???

Terrylw1

Cardew wrote: »

Welcome to the forum.

I don't know how extensive your experience is with Utility Companies; however the Regulator(ofgem) does not agree with you.

The Utility companies are owed far more in debit balances than they have in credit balances, acording to the Regulator. In fact according to a British Gas employee who posts on this forum BG are owed £xxx Million. This is because DDs are set too low.

If you read this forum you will find hundreds of complaints(about all Utility Companies) where the DD was set far too low as an inducement to get them to sign for that particular company; and many end £hundreds in debt.

Contrary to your point, I suggest and inexperienced new customers need to be very wary of the DD set initially and check their account and meter reading frequently; unless you are happy to receive an effectively interest free 'loan'.

Thats true. The guidance from Ofgem over the years has been to set DD's at £25 per month until a history is established as they classed that an an average for domestics.

Agree with Cardew on that since Ofgem have an interest in such issues. They have to amend DD's quite often to bring them inline but they can't do that until you have been with them for a whlie to allow them to assess your usage.

On the debt point, thats one that would need digging into. Such reports could be generated when a large quantity have been billed but are not expected to pay hence a large over inflated debt. However, it would be hardly surprising considering the amount of account BGas must have on hold due to all the complaints they get! Certainly if Suppliers ouwld be aiming to breakeven on collecting their bills so all the other things they are looking into would put them in debt. Electricity Suppliers are certainly guilty of not comparing the customer billing/payments to their own "settlement" bills for their usage at the meter point.

One thing I can add to the argument over utilities is that they "settle" on very poor data and hence their payments are not accurate. There has been a lot of work on this area over the past 3 years but it's still in it's infancy. Elexon are far from happy with this.

Such projects aimed within 1 large Supplier to save them money were under budgeted and seen as not important because they can pass the cost on. The industry is not regulated properly to resolve this as they have had many years and things have only recently started happening. This has allowed Suppliers to pas costs on that they shouldn't be paying and could reduce hence passing on the reduction to their customers.

That would be nice!!!

EAB2

Please Help!

I have been with Equipower and Equigas for about a year and in that time they increased their prices around 30%, whereas everyone else has cut their prices lately.

Will they be cutting theirs or is it time for me to switch again?

British Gas (spit) Click Energy 4 and Priority Response which
includes central heating cover looks like a good deal, but I am loath to go back to British Gas after their appalling customer service last time I was a 'customer'

If anyone is clever enough to get an effective comparison, i am in AL5 and live in a 3 bed semi with elec cooker and gas heating. I have done the comparison sites but most of them do confusing X for the first units then Y for any more tariffs so I cant really make a correct comparison, can I?

knwilliams

After a nightmare period as a Powergen customer I have got a great deal with the utility warehouse. They were recommended by a family memeber and as well as guaranteeing to beat British Gas and your local regional electric supplier I also signed up for their telephone and internet service and get free calls 24x7. I now get all my utilities on one bill at a cheaper rate and with no fixed term contract.

I would recommend them as they not only have very competitive prices but also good customer service. I was directed to eazysave.co.uk

Ken68

EABowden wrote: »

Please Help!

I have been with Equipower and Equigas for about a year and in that time they increased their prices around 30%, whereas everyone else has cut their prices lately.

Will they be cutting theirs or is it time for me to switch again?

British Gas (spit) Click Energy 4 and Priority Response which
includes central heating cover looks like a good deal, but I am loath to go back to British Gas after their appalling customer service last time I was a 'customer'

If anyone is clever enough to get an effective comparison, i am in AL5 and live in a 3 bed semi with elec cooker and gas heating. I have done the comparison sites but most of them do confusing X for the first units then Y for any more tariffs so I cant really make a correct comparison, can I?

In the absence of precise consumptuion figures, EBowden, I would opt for Southern Electric at £104 saving pa as against BG £105. Southern Electric administrate Ebico anyway and my dealings with them are good.
My circs are the same as you but Eastern region and half your figures. Couldn't get your address details so used as for Midlands area. You need to check exact consumption, check your insulation and check for heavy electrical use like tumble driers and such.
Ebico ,as far as I know, are the only providers doing straight no tier tariff.