Switch electricity to end of Nov '14 or July '15?

The_Boss

Hi all,

Live in a large 2 bed flat with my partner (who owns the property), no gas and heat the flat with oil filled heaters. Usage last year was 8800kw but I was home off sick from work long term so we'd use about 7-75000kw usually (I needed heating on during the day most of winter). Unfortunately my partner is non negotiable regarding storage heaters - she just does not want them and we'd be selling the flat in 2015 so would not make back these purchase/installation costs in savings.

She has never let me look into the cost of switching and I was suprised to recently find we seem to be on an Economy 7 tariff (it is just called Eon Energy Plan) and paying 16p/kilowatt during the day and 7p during the night rate. Very little night use. I've calculated that we need to switch to a fixed rate less than 14.9p per kilowatt and with a lower standing charge (currently 26p/day) to be saving money.

So my questions are :

1) Can we definitely switch to a fixed rate tariff with our two rate meter?

2) Fixing to Nov '14 with NPower is the cheapest rate for the next year based on my calculations for 6000kw, 7000kw and 8000kw. British Gas fixed til July '15 works out about £70 to £130 more expensive per year on average (as the per watt charge is 2.3p higher than NPower, but we are protected from raises until we move home in summer 2015 and will not have to see what the best deal is next October when prices are likely to be higher. So are prices likely raise enough to justify us to pay £70-130 more in the next year with British Gas to keep the tariff til summer 2015?

NittyGritty

1/ yes there are plenty of economy 7 tariffs out there, just use comparisons sites, (personally I,m looking at the npower 2017 fix) but there others out there.

2/prices are looking to rise this winter, no one knows by how much, but one thing is sure it will cost you a lot more, if your looking to fix for one year then it could work out cheaper overall,or you can just go with a variable rate tariff, which will work out the cheapest in most cases, but the downside is any price rises will raise the price even further and may cost you a lot more than a 1 year fix rate,

if you plan on fixing longer than 1 year then its a gamble, if prices do go up every winter which is looking likely then it could be a very wise investment, there are some who don't charge for early exit, so if prices drop(unlikely) then you can just switch

The_Boss

NittyGritty wrote: »

1/ yes there are plenty of economy 7 tariffs out there, just use comparisons sites, (personally I,m looking at the npower 2017 fix) but there others out there.

So just to clarify, we cannot switch from a two rate tariff to a fixed tariff because of the meter we have?

Wywth

You can switch to any supplier and any fixed rate E7 tariff. (or non-fixed E7 tariff if you prefer)

Some suppliers may even allow you to have a single rate tariff (fixed or otherwise), but I would suggest you speak to them directly if you retain the E7 meter.

You need to do the comparison whether E7 or single rate is better for you. If a supplier doesn't allow a single rate tariff on a dual rate meter, they will always change the meter for you (a cost may apply- typically about £50)

Don't worry about a fix that extends beyond the date you plan to sell. Early exit fees (if any) do not apply where you cancel due to moving ... but fixing for a longer period may cost more today, so again you need to do the calculations, but don't pay for a fix you have no use for (unless there is a chance you will stay longer)

bob_bank_spanker

The_Boss wrote: »

So just to clarify, we cannot switch from a two rate tariff to a fixed tariff because of the meter we have?

Two rate tariffs and fixed rate tariffs are separate things.

You can get a two rate, fixed tariff. There are plenty of them. Just use a price comparison site.

The_Boss

bob_bank_spanker wrote: »

Two rate tariffs and fixed rate tariffs are separate things.

You can get a two rate, fixed tariff. There are plenty of them. Just use a price comparison site.

Thanks - yep, you are correct of course - I rushed that post as was sending it from work and did mean a single rate fixed tariff as you say.

Thanks for all advice so far. We did look at the Economy 7 on moneysupermarket.com and they come out more expensive, so we will probably look to have a meter installed if it's only £50.

Are any dealers due to start rolling out the new smart meters soon? If so, I wonder if they'd do the meter for free to get our business...

The_Boss

Wywth wrote: »

You can switch to any supplier and any fixed rate E7 tariff. (or non-fixed E7 tariff if you prefer)

Some suppliers may even allow you to have a single rate tariff (fixed or otherwise), but I would suggest you speak to them directly if you retain the E7 meter.

You need to do the comparison whether E7 or single rate is better for you. If a supplier doesn't allow a single rate tariff on a dual rate meter, they will always change the meter for you (a cost may apply- typically about £50)

Don't worry about a fix that extends beyond the date you plan to sell. Early exit fees (if any) do not apply where you cancel due to moving ... but fixing for a longer period may cost more today, so again you need to do the calculations, but don't pay for a fix you have no use for (unless there is a chance you will stay longer)

Very useful help, thanks. If we did fix long term then are we able to add a gas tariff to the account too or would that require cancellation and signing up on a new tariff? We will definitely be moving to a place with gas in 2015 due to the lower cost.

The_Boss

British Gas have said it's fine to switch to a single rate tariff - they will just bill both of the current rates at the same rate.

Former_E.ON_Company_Representative:_Malc

The_Boss wrote: »

Thanks for all advice so far. We did look at the Economy 7 on moneysupermarket.com and they come out more expensive, so we will probably look to have a meter installed if it's only £50.

Just a quick heads up The Boss. To benefit from Economy 7 off peak prices, you need to use a certain amount of electricity during the cheaper night period. The actual proportion depends on the region, your usage and prices.

If you're not using this amount, you can switch to a single rate tariff without changing the meter. You can do this online or by giving us a call.

We'll add the night and day usage together and charge on a single rate tariff.

As others have said, best to pop your usage on to one of the comparison sites. This will let you see all your options both with us and with the other suppliers.

Hope this is of interest.

Malc