first:utility

johnb123

I've been with first:utility for nearly 2 years, and have been generally satisfied with their service as well as their charging rates for both electricity and gas. My current tariff expires in May 2016. I recently received an email from them offering me a new tariff until 2017 or 2018. If I signed up for 2017 my TCR, (Tariff Comparison Rate) would increase by 4% for electricity and by 17% for gas. Should I decide to sign up for 2018 the TCR increases would be 11.5% for electricity and 24% for gas. With the possibility of lower world wholesale prices for gas and oil in at least the near future, (Iran coming on stream again + alternative sources, e.g. fracking), would this be the right time to sign up for a 2 or 3 year tariff?

Offer closes on August 10th! My initial thoughts are to remain on my current tariff as the gas increases look particularly high. Any comments/suggestions would be most welcome!

Thanks!

SoletraderSteve

Check the actual unit prices and standing charges and your annual consumption for an accurate comparison, not the TCR.

KDH_2

You can also sign up to the Dec 2016 tariff without penalty as it's a longer fix than your current tariff. This is likely to be more or less the same price as your current tariff. If you're on May16 v3 than there may be a very slight increase in going to Dec 16 but you get that reassurance of a fixed price for a further 7 months.

johnb123

Thanks, StS. Regardless whether I use TCR or actual price, the increase in cost will still be about 25% resulting in an additional £10/month, (roughly).

Thanks, KDH. Fixing it until December is certainly worth a look. As you said the certainty of another 7 months at a fixed price is welcome.

alderpoint

You may also want to consider moving to a variable direct debit, rather than a fixed. It has the advantage that you never have a bit credit (or debt) building up with them, but you do need to be able to pay the bigger bills during the winter months. Note that the price is the same whether it is a fixed or variable DD.

caveat_emptor

Have had a quote from first utility that is about £200 a year lees than OVO my current supplier. Have first utility sorted out their customer relations problems yet?

System

caveat_emptor wrote: »

Have had a quote from first utility that is about £200 a year lees than OVO my current supplier. Have first utility sorted out their customer relations problems yet?

Forgive me for asking but are you sure? Ovo are pretty competitive. Sorry if you know this already but stated savings for consumers coming off fixed tariffs are meaningless.

caveat_emptor

Hengus wrote: »

Forgive me for asking but are you sure? Ovo are pretty competitive. Sorry if you know this already but stated savings for consumers coming off fixed tariffs are meaningless.

Yes surprised me as well but current tariffs taken from OVO and First Utility websites. OVO have some hefty increases on the tariff I'm currently on which is just about to end. I don't want to move if FU still have their problems hence the question.

System

Try putting your tariff and usage into the comparison table at theenergyshop.com. The site doesn't use the inflated Savings method: it gives you an annual projection on your present tariff and annual projections for tariffs going forward. £200 of Savings looks rather high to me. Ovo reduced its Better Online fixed tariff in June - by a little bit.