Cheap Energy club

Newaccount

Still waiting on my Eon switch.

Is it true that if I ring my current supplier & tell them I am switching they have to keep me on the same tariff (Mine expires on the 2/12)

Seem to remember that this is so. But can't find any posts saying this :question:

Robwiz

Robin_Davies wrote: »

The Cheap Energy Club is an excellent idea, and could work really well, but currently it is encouraging unnecessary switches by making the assumption that members will do nothing unless told to. Here's the problem:

The Club calculates potential savings by working out the costs of a year's usage based on estimates you provide. All of the alternative tariffs it suggests will be running for at least another year, whether they be fixed or variable, so in calculating their costs, it does the best job it can.

But if you are currently on a fix that ends in less than a year, it calculates your annual cost by assuming that, when the fix ends, you won't notice, and your supplier will put you on their standard tariff which costs a lot more. Compare this with, say, another fix that ends a year or more ahead, and you will see apparent savings that, as long as your current tariff is still running, may well not exist in practice.

This is a fundamental mistake which, for everyone on a fix that ends in less than a year, may easily cause them to switch early to another tariff that, in the short term, will actually cost them more money. I almost did this yesterday.

So if you're on a fix that ends in less than a year, you need to do your own calculations so see if a switch now is really a saving. However, now that suppliers provide standardised Tariff Information Labels, "doing the math" is not too arduous.

You don't have to do your own calculation – using the price comparison results you can scroll down the list of companies to find your current supplier. The saving you would actually achieve would be the difference between the biggest saving shown and what your current supplier's current tariff would save you. If it's more than the early termination penalty then it could be worth doing.