First Utility MISLEADING "Upgrade my Tariff"

kevinleesmith

On their upgrade my tariff page it gives figures based on "My Current Tariff" and then for other tariffs.

For me it showed £1,798 for my current tariff and £1,457 (a saving of £341) for First Fixed April 2017 v7.

Even taking off the £60 early exit fees that’s still a saving of £281.

No brainer right?

NOOOOOOOOOOOOOOO!

This is how their scam works...

At the bottom of the page in small light grey text it says "If your tariff ends within the next 12 months, we have assumed that you will move onto our cheapest variable tariff".

Even that sound reasonable but the catch is the words "variable tariff" - which tend to be the most expensive tariff they have, so saying it’s the cheapest most expensive tariff is misleading especially if they only have one variable tariff, which they do - unless it’s found that’s a problem, then they will invent a second one.

So... this means that the first figure you look at is based on using your current tariff until it expires, and then using a very expensive tariff for the remaining months, which of course pushes up that number greatly. My calculation if they did not use a hiked tariff would mean that number would actually be £1,570 which compared to the £1,457 of the First Fixed April 2017 v7 tariff means if I switched I would now only save £113 which after you take off the £60 switch fee means I would only save £53 per year which is much less than the £281 it looks like I would save.
Basically this is a very sneaky way of making it look like staying with your current supplier will save you a sehd load of money when in fact it won’t save you anywhere near what you think.

I think this practice is deliberately misleading people to switch to another tariff and stay with their current supplier.

Any normal customer seeing “current tariff = £1,798” and “change to this tariff = £1,457” thinks it’s a no brainer, when it isn’t. And based on a different new tariff charge, it could mean people are switching because they think it’s cheaper when in fact its more expensive!!!!

JJ_Egan

xxxx its standard to compare with the standard tariff not the cheapest .
See multiple identical posts all companies/ comparisons .
Its a major fault of the current rules .

molerat

kevinleesmith wrote: »

On their upgrade my tariff page it gives figures based on "My Current Tariff" and then for other tariffs.

For me it showed £1,798 for my current tariff and £1,457 (a saving of £341) for First Fixed April 2017 v7.

Even taking off the £60 early exit fees that’s still a saving of £281.

No brainer right?

NOOOOOOOOOOOOOOO!

This is how their scam works...

At the bottom of the page in small light grey text it says "If your tariff ends within the next 12 months, we have assumed that you will move onto our cheapest variable tariff".

Even that sound reasonable but the catch is the words "variable tariff" - which tend to be the most expensive tariff they have, so saying it’s the cheapest most expensive tariff is misleading especially if they only have one variable tariff, which they do - unless it’s found that’s a problem, then they will invent a second one.

So... this means that the first figure you look at is based on using your current tariff until it expires, and then using a very expensive tariff for the remaining months, which of course pushes up that number greatly. My calculation if they did not use a hiked tariff would mean that number would actually be £1,570 which compared to the £1,457 of the First Fixed April 2017 v7 tariff means if I switched I would now only save £113 which after you take off the £60 switch fee means I would only save £53 per year which is much less than the £281 it looks like I would save.
Basically this is a very sneaky way of making it look like staying with your current supplier will save you a sehd load of money when in fact it won’t save you anywhere near what you think.

I think this practice is deliberately misleading people to switch to another tariff and stay with their current supplier.

Any normal customer seeing “current tariff = £1,798” and “change to this tariff = £1,457” thinks it’s a no brainer, when it isn’t. And based on a different new tariff charge, it could mean people are switching because they think it’s cheaper when in fact its more expensive!!!!

This methodology is mandated by the regulator. If you don't like it complain to your MP. If you are lucky they may understand what you are talking about.

System

Agree with all of the above. I would email consumeraffairs@ofgem.gov.uk. I emailed them last year about another supplier, and pointed out that 'Could you Less' should not include exit fees in any comparison.

They will note it and add it to the supplier's file.

kevinleesmith

JJ_Egan wrote: »

xxxx its standard to compare with the standard tariff not the cheapest .
See multiple identical posts all companies/ comparisons .
Its a major fault of the current rules .

Yes - I figured that out, but they way it works is not what a "normal" person would assume - I was raising it so hopefully Martin points it out because I can see many many people switching internally when doing so has either little benefit to them (in exchange for committing for another 12 months) or in some circumstances would lose them money.

kevinleesmith

Hengus wrote: »

Agree with all of the above. I would email consumeraffairs@ofgem.gov.uk. I emailed them last year about another supplier, and pointed out that 'Could you Less' should not include exit fees in any comparison.

They will note it and add it to the supplier's file.

Thanks but its not the exist fees being included that is the problem.

the problem is, say your tariff exipires in 6 months time the number they show you is what you would pay if you paid your current tarrif for 6 months PLUS what you would pay on their "standard" (aka bad) tarrif for 6 months. Of course you would never do that but thats what they show you as a big number with which to compare to switch to something else.

As someone else has said - its actually what the regulator has told them to do - I bet they are laughing all the way to the bank with that one.

MSE is good though becasue it defaults to comparing using your current tarrif only, and allows you to change to evalaute using your current tarrif until it expires and then using the "standard" (aka bad) tarrif.

Planahead

Following on from this thread, I've spent a happy [not] afternoon reviewing my utility bills following a move from one supplier to another.

I find the way all the utility companies set out their bills to be very confusing [suspect deliberately so] - PLEASE MARTIN, start a campaign so that all utility companies have to send clear details.

Why can't they for example calculate the bills on a monthly basis - first to last day of each month, that way customers can easily map their monthly payments against this.

I would favour a spreadsheet type bill which clearly shows the monthly energy costs. When you swap from one supplier to another you have to get used to their way of setting out the bills, adding in standing orders, v.a.t but there needs to be an industry standard so you can compare like for like.

Lessons Learned - yes will be keeping a clipboard and my own spreadsheet in the cupboard in future and strict reminders to record my own readings monthly in future and then try and marry this to the supplier's bills.
There must be an easier way of doing this? Wasn't it a lot simpler before 'Sid' and the sell off?
Anyone else experiencing difficulties or is it just me?

Cardew

Planahead wrote: »

.

Why can't they for example calculate the bills on a monthly basis - first to last day of each month, that way customers can easily map their monthly payments against this.

That would even more confusing. Someone might have a bill of £200 in January and £50 in June. A major advantage of the Direct Debit system is that it splits the annual charge into 12 even payments(in theory anyway!)

System

I agree with Cardew. I have accounts with Zog and GBEnergy. They both bill monthly on the actual meter readings that I provide. The statements show the energy bill for the month and a simple calculation of balance carried forward, plus the DD credit less the charged bill. This gives a new balance that is carried forward to the following month.

DDs are nothing more than the annual bill/12 unless you have elected for variable DDs based on the quarterly bill. I prefer the former but it does require a little bit of effort on my part; ie, to get an accurate bill I have to provide the meter readings on 2 particular days.

MarkBargain

Thanks for this thread, it made me realise I was basing my decisions on a false premise, believing I was comparing current tariff with new tariff, not current tariff for some months and variable rate for some months with new tariff. With this and the exit fees recently introduced for keeping with First Utility but changing to a new tariff, they have gone down in my estimation. I used to recommend them to everyone.

C_Mababejive

I cant understand why people struggle with this. FU provide rafts of data on tariffs etc.

Do maths on current tariff,do maths on tarriff they are pitching at you,compare with everything else,,simples..

I've been with FU for a few years now . They offer a great website, lots of useful data and most of all,i think they offering some of the keenest deals available.Click here to find out more and get a £30 credit. Whats not to like?

http://rewards.first-utility.com/go.axd?ref=F3F20T