Inaccurate information for tariffs

Estelle77

Hi,
I am currently looking for better deals as my current Ovo contract is about to mature next month and the charges are going up. I have checked several comparison websites and I found out that they differ in the figures for the same providers and identical deals. That includes this website.
To make an easy and more accurate (IMO) comparison between such various data, I have made an Excel sheet where I made a field for the tariff of gas and electricity and then also for the standing charge. I used the amount of energy and gas I have added up over the last 11 months as my current provider does not add these up and monthly consumption largely varies. This allowed me to compare among confusing figures across the websites and for any deal (not including the bonuses like cashback) very easily just by putting in three/four figures for each deal. This is just an idea how anybody can do it (if not doing so already). Let me know if you see a chance for any improvements in this method.

What I find discouraging and why I am actually writing this, is, that MSE lists my current provider Ovo as charging me early exit fees while they do NOT do it. None of my records and my personal communication with the customer services team suggests that. Where did you get it from? How much can I trust the other deals with this information listed on the website?

Meanwhile, my current tariff is 'Better Energy FIXED (all online)', which was not among the options on this website as named but it was on one or two other websites I have tried.

Another thing is, after putting in my postcode (Wisbech), I have been shown Peterborough Energy deal (albeit not switchable via MSE), but when I went to the website, they do not supply energy to my postcode yet. Why have I got offered this company to switch to after I put my postcode in the initial profile?

System

I have just checked my MSE CEC page and the latest Ovo Best Energy ONLINE tariff is not showing any exit fees. Suppliers general quote prices with no VAT whereas comparison sites generally show VAT-inclusive prices.

Ovo was charging exit fees for contracts taken out a year ago; however, exit fees do not apply if you elect to switch in the period 49/42 days up to the end of your fixed tariff term. When I joined Ovo in Jun 15, it had dropped the exit fees. However, the bottomline is that the ts and cs in place when you took out the contract apply - not the ts and cs in place today.

For a year, Ovo deterred in contract switching by hitting the customer with the loss of the online discount if a fix to fix was asked for. It has now simplified the contract, and it nows applies a termination fee to any internal tariff switches. Not surprisingly, both the loss of the online discount and the termination fee come to £60 (dual fuel). In fairness, you can switch away from Ovo at any time without penalty provided that there is no return to Ovo within 3 months.

I have now left Ovo. The latest Better Energy Online tariff would have saved me £48 per year. By selecting two suppliers I find that I can save £112 per year - again on tariffs with no exit or supplier tariff switching fees. Have a look at Zog and GBEnergy.

victor2

There are many things to consider when comparing tariffs, but as you have found, it isn't difficult to do in a spreadsheet. OVO used to have an exit penalty, but did drop it more recently. I find the comparison sites are useful pointers to possible suppliers, which you can then analyse in more detail. I gave up on the MSE CEC long ago, shortly after it was introduced, as it gave spurious figures. These could have been down to teething problems and may be cured now, but there are others you can use.
As long as you have your actual 12 month usage, you can estimate your future costs on any given tariff. It will only be an estimate though, as you don't know what your future usage will be. You have to also consider how discounts, or in the case of OVO, interest paid on credit balances, will affect your costs. Some companies take your monthly payment up front, while others effectively let you run in arrears. In the long term, it makes little difference, but if you try to reconcile your accounts to the penny, it can affect it - as can using rates inclusive of VAT, when the bills are generated using an ex-VAT rate and then add it to the total. The calorific value used to convert the metered volume of gas to kWh varies a little too, although in theory it's the kWh that refers to the energy you've used, rather than the volume. This year is a leap year too, so there's an extra day's standing charge and usage!

Estelle77

Hi,

as per tax, the differences in prices are among comparison websites. I did not bother to examine each own energy website separately in this matter.

Regarding the Ovo charges, I do not remember that it imposed early exit fees ever, not when I joined, and even not now. I actually remember their advert saying something that they want people to stay because they want to, not because they have to (due to exit fees). But I am relatively new to this market as I used to pay energies in rent before. This was my first ever utilities contract and I relied on one comparison website that time. This time I became more aware about what is involved and what to be aware of.

For now I have decided for the Scottish Power as it appears to be a good deal via MSE. I went for no exit fees, fixed tariff, low price and the cashback nailed it. The satisfaction of the customers is very individual stuff. Every company has some complaints and compliments from their customers, so you are either the lucky one or not. I have had no issues with my current provider. I just do not like they cannot make their existing customers equal with those they are trying to lure in.

victor2

From OVO's own website:

We’re delighted to say that we’ve scrapped exit fees for anyone who joined OVO or renewed their plan after 3rd March 2015.

So there's every chance your contract which is about to end does have an exit penalty. In my contract, which ended last May, it was in the T&Cs:

2.4

Subject to 2.5 below, you can change supplier at any time during the agreement, although you will have to pay a termination fee of £30 per fuel (£60 for dual fuel agreements).

However, it makes little difference to you if you are nearing the end of your contract and can switch penalty free regardless.

Generally, the comparison sites are pretty accurate with their costs, but do try more than one.

System

As I said earlier, Better Energy Online is showing on the MSE CEC website: it is quite far down the list as it is not that competitive at the moment. From MSE CEC:

OVO Energy
Better Energy (all online) | Fixed for 12 months

As Victor 2 has already said, if you are nearing the end of your contract then it will have had exit fees until the 49 days to go date was reached.

FWiW, I have always found the tariffs shown on MSE CEC to be 100% accurate. The one inaccurate part is the savings shown under the Ofgem-mandated calculation methodology (Months remaining on fixed tariff + 12 months - remaining fixed tariff term on the supplier's standard variable rate). Fortunately, MSE CEC also now shows a simple 'this is what you will pay over the next 12 months IF you were already on this tariff.' calculation - similar to what you are doing on a spreadsheet.

PS Victor 2 - the bit about a termination fee is the latest iteration. My fix with Ovo was from June 2015 and the penalty was based on the loss of the online discount. This wording is better: it is at least a one off fine for each tariff hop.

Estelle77

Thanks guys,
you are right. I have dug up into the old paperwork and there is a clause about early exit fees. I did not pay much attention to this because I did not aim to leave earlier so I let it go and it faded in my memory perhaps. Since then it was about the OVO does not charge these fees.
Nonetheless, I am near the end of my contract so it is not relevant to me. The new one I am going to have has no exit fees and I paid particular attention to that as it is possible I will change address this year again.

The remaining question stays though: Peterborough Energy. After giving my postcode, I got this offer but when going to the actual website, my area is not covered. They say that they have a partnership with OVO, which will be on the bills as a company, but it will be Peterborough Energy they have contract with...

System

Moving is not the quite the same as switching. Most, if not all, suppliers only require a date and a meter reading when you move out and exit fees do not apply.

Estelle77

Well, one of the tariffs I have seen (I think it was here on MSE) listed specifically that transfers are not available for OVO. It was listed as one of the best tariffs or the company with high satisfaction rate and in the upper right corner of that deal there was a dark blue or dark purple triangle stating some specific condition. It has been several days already, I do not recall much detail.

System

Estelle77 wrote: »

Well, one of the tariffs I have seen (I think it was here on MSE) listed specifically that transfers are not available for OVO. It was listed as one of the best tariffs or the company with high satisfaction rate and in the upper right corner of that deal there was a dark blue or dark purple triangle stating some specific condition. It has been several days already, I do not recall much detail.

Most properties already have a deemed supplier. Once you make contact with them, you just switch. Some suppliers will allow you to take your existing tariff in the new property - but not all.

Correction:

The reason that Peterborough Energy does not appear on SOME comparison sites is because it is for local Peterborough residents only. It is administered by the Council that sets the tariff rates. The website states that it is hoping to go National.

Estelle77

The reason that Peterborough Energy does not appear on SOME comparison sites is because it is for local Peterborough residents only

And that is the point. I am not a local Peterborough resident. Yet it came up with other tariffs as if I was. What is the point of giving a post code initially then?