comparison explanation please

willowdene

Hi,
sorry if this is a really stupid question, but to compare (fixed dual fuel) energy suppliers do I just look at


1. price per units per fuel
2 standing charge per fuel


Then factor in discounts (online, paperless bill etc) and exit charges.


is it that simple or are there other factors I need to take into account?
My usage would be the same no matter which supplier.

TIA

Willow

JJ_Egan

Yes tariff rather than estimated direct debits .
To consider fixed contract or not . Exit penalties re fixed contract .

willowdene

JJ


many thanks.

Lurker21

This is going to sound very nerdy - but then again lowest-rate chasers probably are a nerdy bunch - but it is worth finding out how many kilowatt hours worth of gas and electricity you use each year. I have these two numbers up on my pin board.

This makes it so much easier when you go onto uSwitch (easiest to use comparison site in my view) or wherever.

It can be a bit of a pain getting the numbers from your paper bill or your online account, but once you have them it makes it a thirty second job to go onto uSwitch every now and again to find your best tariff.

System

This is what OFGEM suggests you do: personally, I follow Lurker 21's advice and I also have a simple spreadsheet so that I can check the offer. It pays to take your time, or go for a tariff with no exit fee.

What is a tariff comparison rate?

Ofgem’s aim here is to make energy tariffs simpler and clearer for customers and the TCR will allow a more easy comparison between different tariffs across different providers. In this respect it operates in much the same way the APR% rate does for financial products such as loans and credit cards.

The TCR will be a single figure that takes into account any standing charges, unit rates and discounts that go into providing a tariff’s overall cost. Customers can then quickly take this TCR, compare it against another tariff - either from the same supplier or a different supplier - and tell instantly which one is cheaper.

Tariff comparison rates will then be required to be printed on all communication between energy suppliers and their customers.

When will tariff comparison rates come into effect?
Tariff comparison rates are in effect from 31st March 2014.



Source: UK Power

Lurker21

Hengus wrote: »

This is what OFGEM suggests you do: personally, I follow Lurker 21's advice and I also have a simple spreadsheet so that I can check the offer. It pays to take your time, or go for a tariff with no exit fee.

Does your spreadsheet give you more/different results than putting your kWh numbers into uSwitch would?

AndyPK

willowdene wrote: »

Hi,
sorry if this is a really stupid question, but to compare (fixed dual fuel) energy suppliers do I just look at


1. price per units per fuel
2 standing charge per fuel

If you use lots of energy you would benefit from paying a high standing charge to get a lower pence per unit.

If your one person living in a flat, then you would want a low standing charge and a higher pence per unit.

That's why its important to understand what you use over a year, to understand what tariff is cheapest for you.

And why there are sites to do the comparison and calculations for you.

e.g

https://www.cheapenergyclub.com

You put your previous years usage in and it will tell you what is the best deals are for you.


Discounts for paperless bills and exit fees are less important but will help you select from the cheapest 3, along with reputation etc.

System

Lurker21 wrote: »

Does your spreadsheet give you more/different results than putting your kWh numbers into uSwitch would?

A fair question. I will generally fill in the details of my present tariff and 3 others that I might be considering. Why - because no two tariffs are the same. A switching site will only give you an accurate saving prediction if you use the 'x' and 'y' kWh projections that you put in at the start. As each tariff is made up of a standing charge and unit cost then I like to see what might happen if I used, say, 10% more gas than my projection. You would surprised what happens to the best buy charts for different projections.

That said, I appreciate that all this could be done on a switching site by varying the projected consumption. By looking at my 5 minute spreadsheet, I can see that OVO gas and E.oN gas cost the same per kWh but E.oN has a 4p saving on its SC. The difference is more marked for electricity. E.oN is 9p a day cheaper but again there is little difference in unit price. So it follows that if we have an Arctic Winter I am still better off switching to E.oN rather than OVO.

Lurker21

Hengus wrote: »

...

That said, I appreciate that all this could be done on a switching site by varying the projected consumption. By looking at my 5 minute spreadsheet, I can see that OVO gas and E.oN gas cost the same per kWh but E.oN has a 4p saving on its SC. The difference is more marked for electricity. E.oN is 9p a day cheaper but again there is little difference in unit price. So it follows that if we have an Arctic Winter I am still better off switching to E.oN rather than OVO.

Very good.

Incidentally, I withdraw my assertion above that I am a nerd to have my annual usage up on my pin board - I am but an apprentice nerd in comparison!

geordie_joe

Lurker21 wrote: »

Does your spreadsheet give you more/different results than putting your kWh numbers into uSwitch would?

Mine does, the savings are never as much as the comparisons sites say they will be. I read on here it's because these sites assume that when your fixed tariff ends you will go onto the suppliers standard tariff.

So it shows you, for example, how much you would pay if you stayed on your present tariff for it's last month then went onto the standard tariff, versus being on the new tariff for a whole year.

I would never go onto a suppliers standard tariff so the comparison is not relevant to me.

My spreadsheet has the start/end dates and start/end readings at the top. Then on each line below I enter tariff details, including any discounts etc. With my present tariff being the first one entered and the tariff I would switch to if I stayed with my present supplier as the next one. Then other tariffs from other suppliers after that.

When that is done the spreadsheet tells me how much I would pay if I was on each tariff for one year. Which is a much more accurate way of doing it.

I also make a note of any exit fee, so if in the future I want to switch to a cheaper tariff I know how much the exit fee will be and can take that into account.

[Deleted User]

When using Uswitches website be sure not to tick the box which says "compare suppliers you can switch to now " or similar "bent " wordings which can omit cheaper suppliers who Uswitch dont have a deal with. Best is to use Cheaperenergyclub and get cashback on many suppliers. I ve just recieved my £30 from an Eon switch 3 months ago