Should I pay the exit fee and switch?

Nicky321

I am currently on dual fuel with Npower Go Fix 8 until 3rd February 2013, and if I leave before this date I pay and exit fee of £20 per fuel.
In April my statement read

"We calculate you use 7,748 kWh of electricity and 7,514 kWh of gas over 12 months.
We've used this information, which is based on actual readings where possible, to provide you with the following
estimate of how much you can expect to pay over the next 12 months."

Total predicted Electricity Charges £893.06
Total predicted Gas Charges £335.61
both these charges are after the dual fuel annual discount and VAT.

Now Npower have announce 9% hike, do I switch to Scottish Power Online Fixed Price Energy fixed until 31st March 2014, the quote from Scottish Power is

Quote breakdown

New annual electric cost£979.08

New annual gas cost£359.67

New total cost£1338.75

Electric comparison£86.07 more expensive than your current supplier

Gas comparison£24.05 more expensive than your current supplier

Total comparison£110.12 more expensive than your current supplier
Expected electricity Direct Debit *£81.59 per month
Expected gas Direct Debit *£29.97 per month
Expected total Direct Debit *£111.56 per month

Pincher

Nicky321 wrote: »

I am currently on dual fuel with Npower Go Fix 8 until 3rd February 2013, and if I leave before this date I pay and exit fee of £20 per fuel.

So it's not a FIXED tariff, then?

Wolf3

I think you know you are on a fixed rate deal currently but the question that you should probably be asking is what tariff are NPower going to switch me onto when the current plan runs out in 4 months time, probably best to check your contract details for this information and then look at factoring in a rough 8% increase in the annual cost on that tariff and comparing the savings you are going to make then.
In essence you would be paying the exit fees plus the higher cost of the new tariff at the heaviest usage part of the year for 3 months and hope the following 13 months savings are going to be of benefit to you.
are there any exit fees on the Scottish Power tariff if you do change your mind??

Nicky321

I read the terms and conditions and it says after 3rd Feb 2012 I will be placed onto the Go Save Standard tariff which may be more expensive than Go Fix 8.

I then went onto the npower website and got the following quotation (I assume this is without the expected price rises in November as announced).

Go Save - Electricity & Gas

Monthly Direct Debit £134.03 Yearly cost £1,608.37

So looking at this and then adding 8% it looks like Npower Go Save will cost me £1737.00 approx compared with Scottish Powers £1338.75 (and there is no early exit fee with Scottish power) and if i swap via topcashback before the end of the day there is £55.55 cashback for a dual fuel switch.

If i switch now though, like you say Wolf, I will be paying the high usage months at a higher rate than I am paying now, but I wonder what deals will be around come Feb 2013.

houseofpat

If you leave early will you not also lose your £100 annual dual fuel discount which you will get in January?

Wolf3

Looking at those figures you would probably make a small saving on what your paying now over the next 12 months. Taking into account the heavy winter months, exit fees and any DD discount payments

The advantage of the new tariff is fixing your prices through this winter and the next and if (heaven forbid) the prices came down next year, you could then switch to an even cheaper tariff without paying any exit fee.

I wouldn't dither if you do decide to switch as SP are likely to increase their prices soon and withdraw the Online Fixed Price Energy tariff from sale to be replaced with another fixed rate tariff at the higher rates