So what actually changes when you change energy supplier?

randomnut

I received my npower bill today and it got me thinking about shopping around for a new deal. It started me wondering about what *actually* happens when you change supplier?

Take switching broadband for example. You sign up for a new supplier, and there is a brief downtime while an openreach bod physically cables you up to the new suppliers network.

There isn't any such outage when you change energy suppliers. So are you actually getting the exact same gas and electricity from the exact same place? Are you in any way receiving energy actually generated by these companies themselves? So now I am receiving power npower generated then if I switch I am actually then receiving energy say EDF are generating?

If not, and it is all coming from the same place, why the price discrepancies? Why are they all selling the same thing and what is the difference apart from price?

I've always presumed it is always the same since you never see npower advertising their gas is better than a competitors gas or whatever, but it has never been clear what actually changes apart from who sends you the bill?


cheers

wakeupalarm

Its all just one big con to give the impression of competition in the energy market so that multiple directors and CEO's can line their own pockets.

dogshome

A Switch of supplier is just a paper transaction - Same Gas & same Elec down the same pipes and cables.

Some of the suppliers also own power stations, others don't

Why one one supplier is dearer in one area than an another, is down to historical legislation when amendments were made to the Parlimentary Act that Privatised Utility Co's - It made sense at the time, but not now and you may well ask why the suppliers are still doing it.

MillicentBystander

You really don't want cheap gas.

http://www.youtube.com/watch?v=fjvcs0QGjCA

macman

It's just a change of billing. The electrcity supply source does not alter, it's the same DNO as before.

ic

Each supplier pumps gas and electricity into the networks, and their customers take it out. Its like paying cash into a bank, you won't get the same pound notes and coins back - but it all balances out. If a supplier's customers use more energy than the supplier is pumping in, the supplier has to pay other suppliers to pump in on their behalf, and vice versa.

The true difference between suppliers really falls to the discounts on bulk purchases they can negotiate, and how well they run their customer service and billing operations. Everybody will be paying the same (with regional variance on the electric) to run the gas and electric grid.

The real con is the green tariffs. These just promise that your usage, along with with all the other customers on green tariffs are covered by energy sourced from a renewable source. It doesn't mean you'll get the actual unit of electric that was generated by a windfarm or hydroelectric station, but it'll certainly be pumped into the network. The suppliers are increasingly obliged to use renewable sources to a point anyway by law, so in effect if you choose a green tariff you're just opting in to taking on more of the burden of paying for that renewable energy than other customers. The suppliers would struggle if everybody suddenly switched en-mass to green tariffs - the suppliers wouldn't be able to full-fill the promise that every customers' usage would be covered by renewables!

Nada666

ic wrote: »

The real con is the green tariffs. These just promise that your usage, along with with all the other customers on green tariffs are covered by energy sourced from a renewable source. It doesn't mean you'll get the actual unit of electric that was generated by a windfarm or hydroelectric station, but it'll certainly be pumped into the network.

But that is greener! The last thing you want is a spidering of nation-wide networking connecting each and every greenie household. That is not green or efficient.

Now if vegetarian meals were distributed like that then there would be an issue...

Wywth

randomnut wrote: »

I received my npower bill today and it got me thinking about shopping around for a new deal. It started me wondering about what *actually* happens when you change supplier?

Take switching broadband for example. You sign up for a new supplier, and there is a brief downtime while an openreach bod physically cables you up to the new suppliers network.

There isn't any such outage when you change energy suppliers. So are you actually getting the exact same gas and electricity from the exact same place? Are you in any way receiving energy actually generated by these companies themselves? So now I am receiving power npower generated then if I switch I am actually then receiving energy say EDF are generating?

If not, and it is all coming from the same place, why the price discrepancies? Why are they all selling the same thing and what is the difference apart from price?

I've always presumed it is always the same since you never see npower advertising their gas is better than a competitors gas or whatever, but it has never been clear what actually changes apart from who sends you the bill?


cheers

Little changes except the cost and customer service

Don't worry too much about switching. Only customer service, billing and, most importantly, prices change. The pipes, circuits, wires, safety coverage and actual gas and electricity flowing through your home are all the same.

The new supplier performs the switch, and all you do is take a meter reading. Of course, there've been many switching horror stories and sadly these still happen. But for most, it's a smooth process.

http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

DragonQ

Makes it even more crazy that it takes 4-6 weeks to switch.

MillicentBystander

DragonQ wrote: »

Makes it even more crazy that it takes 4-6 weeks to switch.

Of course that, again, is all designed to put you off switching. Which is why I always have to laugh when we get industry apologists on here comparing the energy industry to the supermarket/groceries industry. Can you imagine the fuss that would be kicked up if you had to wait 6 weeks to transfer your shopping allegiance from Tesco to Asda? :eek::D

Kingsransom

Ha ha.

Each supplier generates certain amounts of electricity and gas and pumps it into the National Grid, where it is stored ready for use.

So it's the same gas and electricity coming through the same pipes and wires, all that really changes is the phone numbers you ring up and who you call for support, as far as I can see.

There are some good green suppliers though too. Some, of course are more greener than others.