Cheap Energy Club - is it?

MigsyBigsy

Hengus wrote: »

Blame OFGEM not MSE. All switching sites have to 'compare' in this way. I suppose that the argument for doing it this way is that you cannot stay on your present tariff after March 2015. Personally, I just use a small spreadsheet.

apologies, by doing what exactly, adding the amount spend throughout the year?

dld2s

Energy club says I can save £335 per year going with sainsburys, when I work it out myself it comes out taking this deal would cost me £66 more!

locky123

dld2s wrote: »

Energy club says I can save £335 per year going with sainsburys, when I work it out myself it comes out taking this deal would cost me £66 more!

Are you currently on a Fixed rate which ends soon?

The comparison sites calculations now automatically switch to the standard rate at the end of the fixed period, which is higher rate, and use this in their calculation for a years energy usage from today's date.

System

MigsyBigsy wrote: »

apologies, by doing what exactly, adding the amount spend throughout the year?

Gas Units Used Rate Total inc VAT

Standing Charge 365 £0.219 £80.0
KWH 10400 £0.031 £322.40
Total £402.44
Monthly Payment £33.54



Electricity

Standing Charge 365 £0.164 £59.94

KWH 2400 £0.110 £264.60
Total £324.54
Monthly Payment £27.05

Total £726.98

Discounts £30.00

Total Annual £696.98

Total Monthly Payment £58.08

Note I use my past consumption of 2400kWhs of electricity and 10,400kwhs of gas in a year.

dld2s

locky123 wrote: »

Are you currently on a Fixed rate which ends soon?

The comparison sites calculations now automatically switch to the standard rate at the end of the fixed period, which is higher rate, and use this in their calculation for a years energy usage from today's date.

Fixed rate, but ends at the end of September 2015, cant see 3 months at standard rate making such a difference?

brewerdave

MigsyBigsy wrote: »

apologies, by doing what exactly, adding the amount spend throughout the year?

...I have a similar approach to Hengus when thinking of switching, in that I calculate expected spend based on the average usage over the past 6 years (since my kids flew the nest completely!!) .
I also run a cumulative usage calculator on a May to May basis to see what my current supplier balance should be vs DDs paid to look for the infamous zero Spring balance!!.

System

dld2s wrote: »

Fixed rate, but ends at the end of September 2015, cant see 3 months at standard rate making such a difference?

I have just fiddled the end date for my fixed tariff by 3 months. Based on 2400KWhs for electricity and 10400kWhs for gas, the calculator states that if I was to remain on the current plan my annual spending should be £697 but my annual projected spending for the next 12 months is £778. This is how MSE and other sites can quite rightly claim that by switching people can save £100s if they moved from a standard variable tariff to a fixed tariff. The reverse must also be true.

mrtonygibson

Are my eyes deceiving me or have Sainsburys upped their standing charges 5p on each fuel this week for fixed tariffs whilst advertising a 5% drop in gas prices from 27th Feb? Are these prices given in the comparison sites subject to vat?

canterswest

Hengus wrote: »

I have just fiddled the end date for my fixed tariff by 3 months. Based on 2400KWhs for electricity and 10400kWhs for gas, the calculator states that if I was to remain on the current plan my annual spending should be £697 but my annual projected spending for the next 12 months is £778. This is how MSE and other sites can quite rightly claim that by switching people can save £100s if they moved from a standard variable tariff to a fixed tariff. The reverse must also be true.

Martin Lewis has tweeted they are stopping advertising inflated savings next week. It is mainly comparison sites that advertise savings that consumers will never actually see, not the energy companies, according to a submission to the CMA energy market investigation. The submission suggests energy companies have not used inflated savings to attract new customers because some of them have already been fined based on incorrect pricing information. There is an analysis of MSE CEC's collective switch that concludes:


https://assets.digital.cabinet-office.gov.uk/media/54da24ebed915d514400000b/The_Energy_Shop_Submission.pdf


Based on details of the switch we can estimate that some 10,000 or more customers were quoted "inflated" savings that amounted to some £1.5 million to £2.0 million.


I wonder if all price comparison sites will stop showing inflated savings to avoid more bad publicity and possible misselling claims by consumers who would have taken a different decision with the correct information.

AndyPK

Its a bit biased, as some switching sites allow you to have a correct reading if you want, but they did not mention this!