Switched from British gas to EDF

jonnyslim75

Hi,

I followed MSE's advice along with BBC watchdog and did a saving comparison through MSE.

They stated I would save an average £200 per year if I switched and the best deal came out on top as EDF price fix till 2017.

I then received an email saying I will save on average -£34 a year which has confused me?

How can my saving suddenly be a negative?

Am I not seeing the bigger picture as in I pay a little more based on the last years prices but will save in the long run as the BG have just raised by 9%.

Can someone help in simplified terms please?

Many thanks.

victor2

It may depend on what information you gave the comparison site. Annual kWh usage is always a more reliable indicator.

I would say the £34 extra cost is more realistic, unless you are on a particularly expensive tariff at the moment. You will almost certainly save in the long run.

So, you will pay a bit more per annum now than you have been, but can expect to be saving in the future, as other suppliers increase their prices and yours remain fixed. Plus, should the unexpected happen, and prices actually fall, there will be no penalty for leaving the EDF tariff early.

chris-j

Didn't see the watchdog piece, but (no offence) Martin tends to get over excited about these items and sometimes the advice is just rubbish.
In response to Ed's price freeze nonsense, he prattled on about how you can already fix for 4 winters - but didn't really make clear the potential high cost of doing this.

Any of the long term - "fix for 4 winters" stuff will cost you dear because effectively you are trying to beat the next 4 rises and as victor2 indicates above, the only way you can do this is to put in exactly what you have used in last year in kW hours (not cost) as this is the only thing which can give a meaningful estimate of useage.
If you have two years figures even better as you can work out better averages for summer/winter and then estimate usage better.
Half an hour doing this and you can then calculate what each year could actually cost and for long term fixes you will most likely find that unless prices rise in excess of 15% each year (unlikely unless we get more of those nice subsidise the expensive green energy technologies), you are probably better off on a shorter 2015 fix.

jonnyslim75

Hi,
Thanks to you both for advice.

I'm currently on standard dual fuel contract with BG.

Figures used were KW usage from 2012-2013 as it was a full years usage.

I'm in two minds now whether to let the switch go ahead or back out & stick with BG or switch to short term fix rate.

That said, there is no early exit from EDF & have signed up for alerts through the energy club if a better deal comes out.

All confusing & they all offer the same thing really.

Question is do I go with the switch or stick with BG?

victor2

If it's only going to cost you £34 extra a year to go with the switch, and you're comfortable with your current payments, then you could let the switch go through and sit back for the next 4 winters knowing your energy usage rates will remain as they are. Last winter was particularly long, so maybe you'll use a bit less energy this winter, and it won't even cost you the extra. EDF haven't yet announced their increase for the winter. They might try to win some extra customers by coming in lower (not hard to beat 10%!) or postponing their increase, but it has to increase. [STRIKE]They've [/STRIKE]We've got to fund building new nuclear power stations for us somehow.

brewerdave

OP must either be on a very expensive BG tariff or be a very low user.......I did a comparison with EDF Fix til 2017...and it was going to cost me over £400 extra per year to switch from my current tariff:eek:

victor2

brewerdave wrote: »

OP must either be on a very expensive BG tariff or be a very low user.......I did a comparison with EDF Fix til 2017...and it was going to cost me over £400 extra per year to switch from my current tariff:eek:

I've been thinking the same. It is hard to believe it would only cost £34 extra per year for the same usage.

OP: Do a manual calculation of what it should cost you on EDF's tariff for your previous annual kWh figures. See if it really is in line with what you think. Prove it by putting the same figures into your current tariff and see what that comes out as.

welshee

I am on april 2014 tariff and it was going to cost me £250+ to change to the 2017 tariff.
So figures do seem a bit under-estimated.