Energy Switching

Grandad123

I am in a bit of a quandary about what to do with the energy prices actually going down. It was easy when the only thing that was sure was that prices would go up and you could make a judgement on the advantages of a fixed rate deal. As the only people who can make a judgement as to where prices are now going is the energy companies where should we jump now. As a consumer I can't see how we can make an informed choice. Also I find when doing a price comparison, even on this site, my current bill is always overestimated by about £100 so I always get a good estimated saving. To Switch or not to Switch that is the question?

cklass

I recommend doing your own calculations in a spreadsheet to make sure you're getting accurate figures from the comparison sites.

Energy switching has essentially become a bit of a gambling game. I have chosen to stick to short term fixed rate deals with zero or low penalty fees, they're far cheaper than the variable tariffs, and you don't incur any major costs if something cheaper comes along. So far, this has paid off for me because prices keep dropping. I am sure that there will come a time when they start to sharply rise again and, when that time comes, I will deeply regret not going for a long term fix, but I will just have to remind myself of the savings I have been able to make by being able to take advantage of the price cuts at the moment.

I am currently on E.On's v15 tariff, which is the cheapest tariff for me, but even if I could save money by switching to MSE's Sainsbury's tariff, I would personally only consider doing so if the savings I'd make in the first four months or so would outweigh both my current penalty fee and the penalty fee of the new tariff because then I could still switch if something better comes along over the summer or autumn. I don't know how likely it is that there will be further cuts in the coming months, but since it's a possibility, I am keeping my options open.

System

I agree with cklass: this has to be a pen and paper exercise. Why? Because no two deals are the same. You could have 2 deals which come out with exactly the same total for your projected usage. Which should you choose? The answer lies in the unit prices. As a gas CH user, I would go for the lowest gas unit price just in case it is a cold winter. If I had electric CH, then I would look for the tariff with the lowest electricity unit price. Clearly, if there is, say, a £10 difference in the total annual projected spend then the choice of supplier becomes more difficult.

The easy choice at the moment is: 'avoid tariffs with high exit fees.' Keep your switching options open.

footyguy

Grandad123 wrote: »

I am in a bit of a quandary about what to do with the energy prices actually going down. It was easy when the only thing that was sure was that prices would go up and you could make a judgement on the advantages of a fixed rate deal. As the only people who can make a judgement as to where prices are now going is the energy companies where should we jump now. As a consumer I can't see how we can make an informed choice. Also I find when doing a price comparison, even on this site, my current bill is always overestimated by about £100 so I always get a good estimated saving. To Switch or not to Switch that is the question?

Use a comparison site to see how much you could possibly be saving by switching.

If you are worried about the effects of possible further falls in prices, then choose a tariff with no early exit fees (although since most early exit fees are usually only about £30 per fuel, ask youself if that will be a deal breaker)

By giving your supplier regular meter readings, that should help improve the accuracy of any estimated readings used for billing purposes.

Katiehound

Well I have just started the switching process! It tells me I should save £50 pa plus there's the £30 cashback. Total saved a nice £80. ( Mine is fairly low consumption so it is no good even thinking about average savings!)

I have my bills to hand which showed me exactly what my consumption was for a whole year.
I compared the per kWh unit prices for both gas and electricity, and the daily standing charges for both- all were cheaper... so for me that was a no brainer.Plus I will get Tesco points and the exit fees (should I wish to go down that road) are modest @ £5 per fuel.

All the info should be printed on your bills. That is why I have elected to pay £10 more to get the paper copies- ie I could have saved around £60.- but this way, being old school! I can see what is happening without logging on.

If the prices go down significantly it will be possible to switch in a few months- but after I have received my cash back.

pete-20-11

I've just stared a switch. I used the annual summary from edf and entered the kWh values into the MSE comparison.

I'll be switching to eon - saving £95 plus £30 cash back and tesco points

Even if my consumption goes up, it is a no brainer as eon standing charge and unit charge is cheaper than the edf April16 fix I was on, for both fuels.

Plus £10 to exit eon early is reasonable, should something better come along.

Lurker21

I agree with what was said above, the fixed rate tariffs are the best and you are not locked in until their nominal end date as some think, indeed many such as Scottish Power Feb 2016 have no exit penalties.

Personal view, I would not switch between companies at the moment unless a big (£100+) saving was possible. Why? With a switch there's always a chance of hasslesome problems (see several other threads), and secondly it is quite possible that your company may soon offer a cheaper tariff in this era of falling energy prices.

Grandad123

Hi Thanks for all your thoughts and suggestions. I am with EDF and am on a promise (as far as prices are concerned) and am on the Money Saving system so should be bombarded by new deals. Also EDF are also supposed to keep me on their best tariff but the drop in prices has thrown me a bit. If the energy companies have indeed bought their supplies 3 years ahead can we assume prices will drop for the next three years, if so I guess we will have to chase the best price drop every time. It would be nice if the companies come clean about the future predictions of prices as they hold all the cards. It would be in their own interest as we wouldn't have to switch so often with all the hassle it entails. Even better if your in fixed price tariff and the price drops they could give us a refund. (Flying Pigs)

cklass

If your tariff is the EDF Blue+Price Promise, they don't actually keep you on their best tariff. They just send emails alerting you to new tariffs and they also tell you if a competitor has launched a tariff £52 cheaper than your own. It's still down to you to switch tariffs when cheaper ones become available. If you haven't checked EDF's latest tariffs, it's worth getting a quote on their website to make sure you're on the cheapest tariff.

keith1950

Hi, I have just started a switch from edf to scottishpower on their Feb 2016 fix which is about £180 cheaper plus £42 cashback.


I picked this tariff because there are no exit fees so I can switch again at anytime if prices drop further.


Personally I think it is a much easier decision to fix when prices are falling , as long as there aren't exit fees.