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First Utility losing the plot ???

Your energy prices are changing from 1 April 2015

Dear Mr Popazogaloo,
You’re currently on our iSave Everyday variable tariff. We need to make some changes to this tariff to ensure it better reflects the falling wholesale costs and increases in policy and network costs. As your household consumes a low amount of energy, this unfortunately means that you will experience an increase in your annual bill. Your rates will be automatically updated from 1 April if you choose to stay on this tariff.

Your Personal Projection for the year
Current prices until 31 March 2015 £236
New prices from 1 April 2015 £323
Increase in cost £87

About your Personal Projection
The prices outlined above are what we estimate you will pay annually based on your estimated energy consumption of 1,091 kWh of gas and 918 kWh of electricity, and the rates outlined below. Your Personal Projection is an estimate only and your actual costs will vary according to your usage.
It includes VAT, a Direct Debit discount of £24 per year and a paperless billing discount of £24 per year.

Your new prices Current prices New prices from
until 31 March 2015 1 April 2015
Electricity Unit rate (per kWh) 18.884p 18.373p
Standing charge (per day) 2.15p 5.00p
Tariff Comparison Rate (per kWh) 19.13p 18.94p
Gas Unit rate (per kWh) 4.145p 3.238p
Standing charge (per day) 2.43p 27.50p
Tariff Comparison Rate (per kWh) 4.21p 3.98p


Gas standing charge up from 2.43p to 27.50 per day and bill up by £87 per year !!!!!!!! But all costs other than the gas standing charge have come down.

Any opinions ??? I emailed them today so they'll probably respond in 2017..............:(

Comments

  • Is your email to them querying how they arrive at an increase of £87.00 per year? Or why they have increased the standing charge?

    Based on the info given below it seems a plausible amount.

    Additional Electricity standing charge = £10.40
    Additional Gas standing charge = £91.50

    Then offset by the fall in unit rates which is presumably based on your actual usage.
  • Not entirely sure what your query is....FUtility are free to charge what they want. You are of course free to take your business elsewhere.

    You're an extremely low user, enter your figures into a price comp site, I would guess that ebico (0p/day standing charge) would come out favourably.
  • Nada666
    Nada666 Posts: 5,004 Forumite
    edited 26 February 2015 at 12:43PM
    What is your question? Standard standing charge is about £95 per year. First Utility were offering tariffs with £10 per year charges - it was pretty clear they were unlikely to maintain that internal tariff balance forever and would revert to a more regular split.

    They will have had a lot of expensive low-useage customers take advantage (particularly when they offered a similarly priced fix - that fix was withdrawn pretty quickly) and, like npower (who have now withdrawn their £0 (with discount) electricity tariffs), have decided to stop accommodating such customers.

    Over the last few years following Ofgem's decision to ban two-tier tariffs low useage customers such as yourself have been battling to avoid year-on-year increases in price of 70% or 90% or 40%. I considered this variable tariff but assumed they would have changed it long before now - you are lucky that they have held off for so long. Unfortunately the cheapest alternatives are no longer available (npower fixes) so you will probably be stuck with Ebico or Ebico. But check single fuels separately on a comparison site for your new options.
  • footyguy
    footyguy Posts: 4,157 Forumite
    1,000 Posts Combo Breaker
    ...About your Personal Projection
    The prices outlined above are what we estimate you will pay annually based on your estimated energy consumption of 1,091 kWh of gas and 918 kWh of electricity, and the rates outlined below. ...

    Are you sure about your estimated energy consumption fugures?

    They are very low for an occupied property. I probably use almost 1091kWh of gas per year just for the pilot light!
    Remember the gas meter does not directly measure kWh.

    Having established the accuracy of those estimated consumption figures, whenever a supplier gives notice they are changing the terms on which they charge you, that is an good time to check where they stand for you compared to the competion by use of a comparison site.

    If you do decide to switch supplier (within a reasonable time), then you should be able to retain your current tariff until the switch actually occurs, even if after 31 March 2015.

    If you don't wish to change supplier, it maybe worth speaking (don't email, speak!) with FU to see if they have a cheaper alternative tariff for you (I'm surprised no mention of other tariffs they offer are made in their correspondence)

    :)
  • footyguy wrote: »
    Are you sure about your estimated energy consumption fugures?

    They are very low for an occupied property. I probably use almost 1091kWh of gas per year just for the pilot light!
    Remember the gas meter does not directly measure kWh.

    Having established the accuracy of those estimated consumption figures, whenever a supplier gives notice they are changing the terms on which they charge you, that is an good time to check where they stand for you compared to the competion by use of a comparison site.

    If you do decide to switch supplier (within a reasonable time), then you should be able to retain your current tariff until the switch actually occurs, even if after 31 March 2015.

    If you don't wish to change supplier, it maybe worth speaking (don't email, speak!) with FU to see if they have a cheaper alternative tariff for you (I'm surprised no mention of other tariffs they offer are made in their correspondence)

    :)

    Thanks all for your responses. I'll be off to join someone else (Ebico indeed look ok), FU are rather naff (took me a year to get a 1st bill when I switched). My queries are what are their justifications for such large increases in standing charges and annual estimate. My readings and usage are spot on. It's funny though that they didn't sent someone around to check them before hiking up their price..... By giving me a 36% increase I leave so they get 36% of sweet FA.

    They did offer me iSave 44 one year fix down the email with they say would reduce next years costs by £30.
  • Thanks all for your responses. I'll be off to join someone else (Ebico indeed look ok), FU are rather naff (took me a year to get a 1st bill when I switched). My queries are what are their justifications for such large increases in standing charges and annual estimate. My readings and usage are spot on. It's funny though that they didn't sent someone around to check them before hiking up their price..... By giving me a 36% increase I leave so they get 36% of sweet FA.

    They did offer me iSave 44 one year fix down the email with they say would reduce next years costs by £30.


    It's only a 36% increase because of your unique (and frankly peculiar) set of consumption statistics.

    As you freely acknowledge, all other charges except Gas Standing Charge have come down, so for most people it won't be anything like a 36% increase.
  • footyguy
    footyguy Posts: 4,157 Forumite
    1,000 Posts Combo Breaker
    edited 28 February 2015 at 10:24AM
    Thanks all for your responses. I'll be off to join someone else (Ebico indeed look ok), FU are rather naff (took me a year to get a 1st bill when I switched). My queries are what are their justifications for such large increases in standing charges and annual estimate. My readings and usage are spot on. It's funny though that they didn't sent someone around to check them before hiking up their price..... By giving me a 36% increase I leave so they get 36% of sweet FA.

    They did offer me iSave 44 one year fix down the email with they say would reduce next years costs by £30.

    What do they need to check? :huh:

    No supplier arranges individual visits to the customers when they announce a price change - it just wouldn't be feasible , let alone of any value.

    If you are on a variable tariff, the supplier can change the prices at any time (having given notice as they have done to you)

    As I said, this is a great hint/opportunity to check a comparison site to see if you can get something more competitive. If you want the guarantee of some price stability, opt for a fixed (or possibly capped) tariff deal.

    :)

    Presumably the supplier has radically changed their charging structure to more align with their actual fixed and variable costs they incur in providing you a service.

    As you are such an unusually low user, and will switch supplier rather than pay the new rates that will be demanded by the existing supplier, I'm sure they won't be too disappointed over losing a customer that is presumably actually costing them money to supply at present ;)
  • Joined EBICO.

    Electric lower at 18.01p, gas dearer at 5.41p. No standing charge though.

    Frugality rules !!! Thanks for everyone's opinions.
  • footyguy
    footyguy Posts: 4,157 Forumite
    1,000 Posts Combo Breaker
    edited 28 February 2015 at 2:12PM
    ^^^^

    Yes, Ebico are often a favourable supplier for low users, especially of gas (and/or those on PPMs). The fact Ebico still cost you more for gas, despite you being a really low user, just illustrates how much you were costing FU, and hence why they have needed to change their charging structure.

    However, for you you could get electricity even cheaper than Ebico for just 16.905p per kWh (no standing charge) from Green Energy, or even from nPower at just 16.863p per kWh (again no effective standing charge, as they apply a discount equivilent to the standing charge if you pay by DD, monthly or quarterly)

    These will save you about 6% of your annual electricity cost compared to Ebico
    What's more, you could also earn possible cashback switching to either Green Energy or nPower. (worth about another 10% of your annual electricty cost with Ebico, assuming your consumption figures are accurate)

    All these are variable tariffs, so prices can change again at any time (after appropriate notice)
    All prices include VAT
This discussion has been closed.
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