Seriously Confused by 'Personal Projection'.

TheCardcan

I've been with First Utility but looking to change when they emailed me to raise my monthly DD by £25 to £115. Looking for a new supplier, I submitted the information from First Utility and THEY come up with a monthly payment of £98.00 and an annual saving of almost £434. I just don't get it, but suspect that as it is just a projection and once you've signed up the payment increases. Does anyone have an explanation?

System

Ignore the savings as they look 12 months ahead which assumes 'X' months on your present tariff and '12-X' months on the supplier's standard variable tariff. Use a comparison site and enter your past 12 months ACTUAL usage. You will then get an accurate comparison of annual cost (ignore the projected savings).

Cardew

If you are 'seriously confused' then the Energy company have achieved their aim.;)

As stated above, simply enter your annual consumption in kWh into a comparison website like https://www.energyhelpline.co.uk and it will list the annual cost - ignore the savings - it is the cost that matters.

Former_MSE_Weleid

Hi TheCardcan,

Following changes introduced by Ofgem, the energy regulator, it stipulated that personal projection calculations have to factor in the tariff costs for the remainder of the fixed tariff, as well as the standard tariff which energy suppliers move its customers onto when the fix ends. This means if you have two months of your fixed rate tariff remaining, your calculation is based on two months at the fixed tariff rate, and then ten months at the standard tariff rate.

At the time that this ruling was introduced we raised our concerns and have continued to pass on feedback from our users to Ofgem. Hopefully this will lead to a review of how annual personal projections should be shown.

On the Energy Club site we show you details of 12 months at your fixed cost and 12 months on the standard variable tariff separately in a blue box at the top of your results page. You may find it more beneficial to compare with the cost of your current tariff over a year.

We're currently working on some changes to the site so soon you'll be able to choose which figure to base your annual projection on, 12 months on your current tariff or the 12 month blended figure (the cost of the remaining time on your fixed tariff and the cost of the standard tariff you'll be moved onto afterwards).

I hope this information helps.

MSE Weleid

energyworker

I would hazard a guess that if you spent a few months paying £90 and your real usage is equivalent of £98 then you have been reassessed to £125 to recoup previous underpayments.

DandelionPatrol

Cardew wrote: »

If you are 'seriously confused' then the Energy company have achieved their aim.;)

As stated above, simply enter your annual consumption in kWh into a comparison website like www.energyhelpline.co.uk and it will list the annual cost - ignore the savings - it is the cost that matters.

I agree.

You always pay for what you use and you must work out the saving by taking the difference between the prices for your usage on the respective suppliers tariffs.

You cannot work out the saving by taking the difference between monthly payments. There are no shortcuts.

System

By now the original poster will be sitting at home saying 'this is all too difficult, and I will stick with what I know' which is exactly what the energy companies hope that customers will do.

If the original poster could tell us what actual usage (in kWhs or meter readings with dates) for the past 12 months was, and the town where you live then there are people on this forum who will happily do the calculations for you.

AVOID any readings with a big E along side them as them are estimated.

Biggles

MSE_Weleid wrote: »

We're currently working on some changes to the site so soon you'll be able to choose which figure to base your annual projection on, 12 months on your current tariff or the 12 month blended figure (the cost of the remaining time on your fixed tariff and the cost of the standard tariff you'll be moved onto afterwards).

Try using http://www.energyhelpline.com/ for a comparison, you've been able to do this for months with their site.

cifpower

When I have ever done a comparison, I go from the default tariff which is always a standard tariff. Then I just look at who is cheapest for the year. That way it won't include part of my current deal.