MSE News: Energy firms' costs hit five-year low – but don't wait for cuts to bills

miller

Pincher wrote: »

Scottish Power is really sneaky.


They drop the gas unit rate, and raise the unit rate on electricity.

I have been doing comparisons fairly regularly and most firms are doing this. Our switch to First Utility means we will be paying 18% less to gas, but 4% more for electricity.

IMO this started very shortly after our government signed the nuclear power station "deal" effectively raising finance against the bills of homeowners.

System

miller wrote: »

I have been doing comparisons fairly regularly and most firms are doing this. Our switch to First Utility means we will be paying 18% less to gas, but 4% more for electricity.

IMO this started very shortly after our government signed the nuclear power station "deal" effectively raising finance against the bills of homeowners.

Switch to single suppliers for gas and electricity my friend. You will be surprised at the savings that you can make compared to a dual fuel bill.

miller

Hengus wrote: »

Switch to single suppliers for gas and electricity my friend. You will be surprised at the savings that you can make compared to a dual fuel bill.

^^^ this is true, I had noticed that, but was looking to get the switch done and covered for the whole of next winter and many of the cheaper electricity options were only for 12 months.

Still a top tip though for anyone reading this.

Bluebirdman_of_Alcathays

Pincher wrote: »

Scottish Power is really sneaky.


They drop the gas unit rate, and raise the unit rate on electricity.


I switched to the new fixed tariff, on the assumption that I would use lots of gas, but this winter has been too mild.


Amusingly, if I did not upgrade to a condensing boiler, the lower gas unit rate would probably make a noticeable saving.


As it is, I am using more electricity because of the tumble dryer.


Well played, Scottish Power.

I've heard energy companies accused of a lot of things, but controlling the weather....

lstar337

Pincher wrote: »

Scottish Power is really sneaky.


They drop the gas unit rate, and raise the unit rate on electricity.


I switched to the new fixed tariff, on the assumption that I would use lots of gas, but this winter has been too mild.


Amusingly, if I did not upgrade to a condensing boiler, the lower gas unit rate would probably make a noticeable saving.


As it is, I am using more electricity because of the tumble dryer.


Well played, Scottish Power.

That's because Dual Fuel isn't a money saving product.

A money saving Jedi uses a supplier for each fuel young padawan.

Pincher

lstar337 wrote: »

That's because Dual Fuel isn't a money saving product.

A money saving Jedi uses a supplier for each fuel young padawan.

It is Star Wars season.


Utility suppliers are the Sith, then.


Suppliers need customers, and the customer needs energy.
We are all locked in an eternal battle for dominance, and all part of the Force Market.


I did look at the separate contract thing, a few months ago, when this raise electricity to make up for gas practice started, but it just fills me with fear. Leaving Scottish Power is like running away from East Berlin, they shoot you in the back when you try to run.


This dual fuel business was only good for a while with E.On. I seem to remember DD plus Dual Fuel discount was something like 6%. What with FixOnline ~24% online discount and Tesco Clubcard points, it was a Golden Age. Sigh.

miller

Pincher wrote: »

I did look at the separate contract thing, a few months ago, when this raise electricity to make up for gas practice started, but it just fills me with fear. Leaving Scottish Power is like running away from East Berlin, they shoot you in the back when you try to run.

They called about 20 times last time we left them, so this time my parting gift was to change the contact number on the account to a little used PAYG phone of mine.

scaredofdebt

I'll play devil's advocate here.

I believe "green taxes" have increased over the past 5 years and so have distribution costs that energy firms have to pay to the network. So the wholesale price isn't the full story and it is therefore misleading people to expect the suppliers to drop their prices based purely on the wholesale price.

Also most companies buy the fuel months and even years into the future to ensure continuation of supply is not interrupted.

It's a bit like expecting petrol prices to be ~35p a litre as oil is now a quarter the price of what it was 18 months ago as oil has fallen from $120 a barrel in 2014 to $30 a barrel today.

Of course it isn't due mainly to tax! Blame the government as usual.

miller

I agree with what you are saying, but they would do themselves a favour if they were not so quick to raise prices when the wholesale price does increase.

joncombe

scaredofdebt wrote: »

I'll play devil's advocate here.

I believe "green taxes" have increased over the past 5 years and so have distribution costs that energy firms have to pay to the network. So the wholesale price isn't the full story and it is therefore misleading people to expect the suppliers to drop their prices based purely on the wholesale price.

Regarding the distrubtion costs, isn't this what the standing charge is supposed to be for? In which case I'd expect to see this rising, but the unit charge dropping.