Misleading headlines

ian_P

Hi all,

I've had a brief look to see if this has been covered before and didn't find anything, so apologies in advance if I've missed something.

I'm concerned about the claims made when comparisons are shown between ending contracts and reverted-to standard terms. In my case, I was shown a saving of over £300 but I couldn't find the tariff information on the listed alternatives to do a check. Nevertheless, I went for the Ovo deal, which was recommended by MSE.

On signing up, I got details of tariffs and when compared to my outgoing deal, I'll be lucky to save £50. OK, a saving, but nothing like the headline number. Surely these headline claims should be offered with a health warning for people who are already in the switching system?

OK, Uswitch pulls the same trick, but that's no excuse. Put me down as disappointed.

molerat

It has been covered several times. MSE CEC has the option to compare against current prices, EnergyHelpline does the same. They all? show the price per year of your current tariff and the price per year of alternative tariffs. The way savings are shown is mandated by OFGEM and unfortunately it is generally in the interests of the switching site who gain a commission to abide by the rules.

brewerdave

I just received an email trumpeting "savings" of £150+ vs my current EON tariff!
In fact, I would actually be worse off over the next 9 months til my current fix ends, and ALL the savings come from a comparison of EON'S Standard rate vs the comparison site's recommended tariff -and are further skewed by a strange assumption of monthly usage rate and no acknowledgement of the ETC imposed by EON!!

matelodave

It's been said 100's of times - you need to do your own sums based on your consumption in kwh and using the published tariff - the comparison sites are a useful pointer but you need to check yourself.

A bit like a sat-nav really, follow it blindly and you can drive over a cliff, use some common sense and they are very helpfu

System

If anyone is unhappy with what is known as the 'Inflated Savings Methodology' - an Ofgem-mandated comparison site assumption - then report your concerns to:

consumeraffairs@ofgem.gov.uk

Expect a very robust response, and Ofgem will argue that an assumption has to be made as to what people will do at the end of a fixed term contract.

Cardew

Hengus wrote: »

If anyone is unhappy with what is known as the 'Inflated Savings Methodology' - an Ofgem-mandated comparison site assumption - then report your concerns to:

[EMAIL="consumeraffairs@ofgem.gov.uk"]consumeraffairs@ofgem.gov.uk[/EMAIL]

Expect a very robust response, and Ofgem will argue that an assumption has to be made as to what people will do at the end of a fixed term contract.

You are correct!


However anyone savvy enough to be on a fixed rate tariff and check a comparison website, will obviously be unlikely to go on a Standard tariff at the end of their fixed tariff.

ian_P

Hi all,

Obviously a well-aired topic. I still think that there could be a health warning, along the lines of:

Please note, the saving may not be so big if you are already an active switcher.

Just a thought.

Just as an update, I signed up with Ovo on a no-cancellation-fee deal and am glad I did, as the Big Six have now rushed out better deals, though with some catches. I'll let the dust settle for a while before deciding whether to move again.

Cisco001

Is it really matter how much it claim you are saving?

All you need to do is compare what is your current supplier unit rate and the new supplier unit rate to see if you make any saving.

scaredofdebt

Cisco001 wrote: »

Is it really matter how much it claim you are saving?

All you need to do is compare what is your current supplier unit rate and the new supplier unit rate to see if you make any saving.

Not so simple when standing charges are involved. OK it's not rocket science but it's not something you can work out in your head.

carol04

I just phoned my existing energy provider and got them to give me the kwh hours for my gas and electric, the daily standing charge rate, and they gave me the amount I paid for each for the previous 12 months. That made it really easy to compare. Am sure all suppliers would provide this if asked

teddysmum

scaredofdebt wrote: »

Not so simple when standing charges are involved. OK it's not rocket science but it's not something you can work out in your head.

For each supplier's tariff : annual standing charge (or 365X daily rate) + your last year's usage X unit cost.


Many suppliers have a section, which will do the calculation for you, on their website.