Cheap Energy Club inaccuracies

billp_2

I joined the Cheap Energy Club when it was first set up and have followed it with enthusiasm. However, my current deal.'Online fixed price energy October 2014' with Scottish power is now coming to an end and the CEC reckons that I can save £287 a year if I switch, Sounds good, but it isn't, when I check out the figures.

I have kept my Gas and Elec usage figures for some 8 years and calculate the annual KWH for each. This last 12 months my figures are 20345 for gas and 3967 for electricity. The CEC site works out that my cost will be £1609 pa at £134 per month.

That is wrong, as I pay £124 per month and after exactly a year am £57.58 in credit. Cost for the year, by my calculations is £1430.42 - not the £1609 as the CEC quote.

Someone please tell me that I'm missing something somewhere, as the CEC certainly seems to be giving misleading figures.

Bill

Bluebirdman_of_Alcathays

I'm no expert on CEC, however I would imagine they are basing their forward figure on SP's standard tariff - this is what you will be going over to. It makes more sense to compare the best tariff to the one you will be paying, not one that will no longer be available in a month.

billp_2

Thanks Bluebirdman, that makes sense - at least as far as to how the CEC calculates their figures using the standard tariff. It gives a hugely misleading picture as energy companies now have to offer their customers the most advantageous rates to the customer, so comparing to standard tariffs is not right nowadays.

I've already had an offer from SP to go on their 'Online fixed price energy October 2015' and pay the same amount each month as I do now. That, I've accepted and will check with CEC after the end of September using my new tariff, which has no exit fees, I'm pleased to say.

Sounds as if the CEC needs to amend their calculation formula to include the 'best' tariff from the customers current supplier.

Bluebirdman_of_Alcathays

I disagree - the SP standard tariff is what you'll pay if you do nothing. You have to actively make an arrangement with SP to go onto their cheapest tariff, something that is out of MSE's control. Energy companies can offer all they like, but uptake remains low.

They have to compare something, and the standard tariff is what the vast majority of people will end up paying, very few people actually roll over to another contract with the same supplier, particularly as many of them have exit fees.

molerat

My fix ends in 7.5 months and CEC shout that I can save money by switching because in 7.5 months time I will be switched to the standard tariff. The other comparison sites I use do not highlight this until 3 months prior to the end of fix and inform me that the fix is ending and that I should check, much more sensible.

Quentin

Bluebirdman_of_Alcathays wrote: »

I disagree - the SP standard tariff is what you'll pay if you do nothing. You have to actively make an arrangement with SP to go onto their cheapest tariff, something that is out of MSE's control. Energy companies can offer all they like, but uptake remains low.

They have to compare something, and the standard tariff is what the vast majority of people will end up paying, very few people actually roll over to another contract with the same supplier, particularly as many of them have exit fees.

The CEC is supposedly a tool for moneysavers who would/should be inclined to get the best deal when their fix expires.


By shouting how much you can save by switching now (when the savings quoted include using a current standard tariff which could be unavailable too is somewhat cynical, bearing in mind the real objective of the CEC is to get you to switch via MSE!)

Bark01

Its an RMR regulation brought in in March, any forward projection from a broker or a supplier should include any known changes to the tariff during the upcoming 12 months. So if a product ends in x months the remaining months are calculated at the suppliers standard rate.

The calculation should be universally used by all parties.

As Broker sites have only recently been brought under Ofgem they are being given extra time to meet their obligations, so there maybe some discrepancies between sites.

System

Bark01 wrote: »

Its an RMR regulation brought in in March, any forward projection from a broker or a supplier should include any known changes to the tariff during the upcoming 12 months. So if a product ends in x months the remaining months are calculated at the suppliers standard rate.

The calculation should be universally used by all parties.

As Broker sites have only recently been brought under Ofgem they are being given extra time to meet their obligations, so there maybe some discrepancies between sites.

And how exactly does this carefully considered and crafted piece of market regulation actually help the consumer make an informed choice? What the consumer wants to know is what is the best deal for me if I switch today? In this respect it is irrelevant whether the consumer is coming off a fixed deal or is on a standard tariff. All this change will do - as the OP has pointed out - it suggest to consumers that the savings that they can make are considerably greater than they actually will be. This cannot either be sensible or right. It would seem that this change has been as well thought through as the process which underpins the requirement for frequent reviews of DDs. It is perhaps time, imho, that OFGEM was declared 'unfit for purpose'.

Former_MSE_Archna

Hengus wrote: »

And how exactly does this carefully considered and crafted piece of market regulation actually help the consumer make an informed choice? What the consumer wants to know is what is the best deal for me if I switch today? In this respect it is irrelevant whether the consumer is coming off a fixed deal or is on a standard tariff. All this change will do - as the OP has pointed out - it suggest to consumers that the savings that they can make are considerably greater than they actually will be. This cannot either be sensible or right. It would seem that this change has been as well thought through as the process which underpins the requirement for frequent reviews of DDs. It is perhaps time, imho, that OFGEM was declared 'unfit for purpose'.

You're absolutely spot on about this particular piece of regulation, it is very frustrating. We don't think it helps at all and are speaking to Ofgem about it. Ofgem has raised it in one of its consultations which we're planning to respond to. I'll be using comments like these to help make the case.

Thanks

Mr_K

Quentin wrote: »

The CEC is supposedly a tool for moneysavers who would/should be inclined to get the best deal when their fix expires.

No it isn't. Its main aim is to make this site (& Mr Lewis or whoever he's flogged it to now) lot of money in commission. I've asked a few times for MSE to disclose how much they've made from this with no response. You'd be better going via a cashback site to get the most of the commission yourself.

Quentin

Mr_K wrote: »

No it isn't. Its main aim is to make this site (& Mr Lewis or whoever he's flogged it to now) lot of money in commission. I've asked a few times for MSE to disclose how much they've made from this with no response. You'd be better going via a cashback site to get the most of the commission yourself.

You wrongly argue my post is wrong.

But have "cleverly" only posted part of it so you can post your rant.


If you want to argue a post have the decency to quote it in full, don't miss out the relevant bit that makes your argument redundant:

Quentin wrote: »

.........By shouting how much you can save by switching now (when the savings quoted include using a current standard tariff which could be unavailable too is somewhat cynical, bearing in mind the real objective of the CEC is to get you to switch via MSE!)

Nothing wrong with ranting but don't use part of others posts as your way in.

And why should mse answer your questions? They are a business not the local council. No freedom of information applies.