Time to switch tariffs - don't understand them

Bmth100

I handle all my own credit etc., but do not for the life of me understand my Tariff options. I'm on something called Dual Fuel 1 year fixed v6 tariff, with Eon. They're offering me all sorts of alternatives with various codes (v4, v14 etc). They have different monthly instalment amounts based on my estimated energy use from the past year. Should I literally just choose the cheapest monthly cost or are there catches?

lvf

Oohh now that's a question! You shouldn't feel bad, there's a lot to take in when trying to find a new tariff. Hope the following helps.

Firstly, the 'codes' (v4, v14) these are tariff names, used to distinguish one tariff from another. The 'v' denotes a version number, meaning it is a revised version of an earlier tariff. The name has to be changed if they change any aspect of the tariff, as regulations do not allow any changes to the same tariff once released. So if there is a change to the prices or terms, the tariff name must also change.

Next, the tariff is made up of two main charges, unit price and standing charge. The unit price is the amount you pay for one unit of energy. When running a comparison, you should have your total amount of units used for a year to hand, as this will show you the estimated spend for the following year. The daily standing charge is a one off charge per day applied to the bill, and varies depending on the supplier.

Next, there are two types of tariff, fixed and variable. Fixed price tariffs mean that your unit price and standing charge are fixed (cannot change) for the duration of your tariff. You can still change your tariff or supplier, however be wary of any early cancellation/exit fees should you decide to do this. I see you are with EON, and I'm sure they allow you to move freely to another of their tariffs but do have an exit fee on that Fixed 1 Year tariff should you decide to move to another supplier.

To get the best tariff, you will need to decide for yourself what is best, the duration, the prices and the terms. The 'catches' are most likely to be limited to the exit fees, as the energy companies cannot put in hidden fees or charges.

Hope I haven't confused you too much, but any questions just ask!

Robwiz

lvf's explanation is good. There is an additional point to be aware of: how the individual suppliers calculate your monthly direct debit payments.

Most homes use far more gas and electricity in the winter so some companies set the monthly payment high so that you never owe them money which means that the company has more of your money than it should (and may be slow to give it back if you change suppliers). Some of the smaller companies want you to pay a month in advance (your first DD goes out of your bank as soon as they take on your supply).

If you read this forum, many of the posters are angry with their company because their monthly payments have fallen behind their actual usage, so their supplier has increased their monthly payment. You can avoid that by taking regular meter readings and comparing them with the forecast consumption you gave the company when you joined it and letting them know if their estimate is different to your actual numbers – lots of companies make it easy to provide regular meter readings online, which is a good thing.

To choose the best tariff, you need good information – knowing how much gas and electricity you have used over the past 12 months. This should be shown on your bills. If you put these numbers into one of the many price comparison sites it will do the maths for you. You need to select the actual tariffs you are on – all the sites have them all available as options on the form.

You can then look for feedback on the companies that are top of the list. Prices are changing every day at the moment so it may be worth opting for a supplier that doesn't charge early exit fees. As lvf said, e.On allows its customers to switch to new tariffs at no cost.

Meadows

Bmth100 wrote: »

I handle all my own credit etc., but do not for the life of me understand my Tariff options. I'm on something called Dual Fuel 1 year fixed v6 tariff, with Eon. They're offering me all sorts of alternatives with various codes (v4, v14 etc). They have different monthly instalment amounts based on my estimated energy use from the past year. Should I literally just choose the cheapest monthly cost or are there catches?

No catches just a new start date for a 12 month contract.

If you are with Eon and have an on-line account then select the 'Find or best deal for you ' tab and it will link through to current offers V14 (is the latest) showing you current rates and monthly costs and well as tariff comparison rates for a quick easy comparison with other companies.


You can choose to have a fixed or variable tariff.

If you are not on-line then ring them and if you are wary of new deals then ask them to send you a few in the post so you can compare current costs with what you already have.

If you are on-line with your account you can sign up to tariff alerts that let you know when they have new deals, as long as you stay with Eon the penalties for early closure on each new fixed deal does not apply if you switch from one deal to the next with them (only if you leave to go to another supplier). There are times when a new deal comes through and the a week later another better deal can be available, easy to switch to a new one with no penalties (just a new start date for a 12 month contract) to benefit lower cost to you.

Bmth100

Thanks guys. Really useful.

@Meadows, I do have online so I'll have a look, I didn't check this before as I wasn't sure if they'd try to put you in a tariff that gave them more profit. Overly cautious!

Whatever I choose should hopefully be good. Eon have previously compared our home to "a vacant property or second home" based on usage!

d70cw6

You don't need to understand them. Just plug your info into the energy club or similar.

Beverley_Bill

This question must have been asked before. When doing an energy comparison, is it better to compare one company for gas and another for electricity? Would it make a difference between relying on one company for dual fuel deals?

Thanks in advance.

BB

matelodave

It's always good to test it out for dual fuel and individual gas & leccy to see if there are better deals to be had going for different suppliers.


Dual fuel isn't always the cheapest whatever the companies say even a dual fuel discount may not be as good as two separate deals

Nada666

Re Dual Fuel tariffs.

If you are close to average use then the difference can be trivial and you may prefer to choose to manage just one Direct Debit for the sake of 50p or a pound a month on an eleven hundred pound annual bill. Doubly so once you take in the hassle of fluctuating instalments on a 'fixed' monthly payment deal.

But, as mentioned, single fuels with separate tariffs do usually outweigh the dual fuel discount.

If you are a low or high user you must make sure you check the single fuel options (you can even benefit from having each fuel on a separate tariff with the same supplier (although not all suppliers allow you to do that.))

Beverley_Bill

Thanks, this has helped a lot, after reading the latest reports about the worst providers and a letter from EDF and Npower in the post, I am more determined to try out one or two of the new boys on the block