Switch calculation incorrect

Gerry31

Looking to switch and after having entered the exact kWh consumption and tariff, etc with Scottish Power, the switch calculator estimated a current monthly spend of £62 when infact it's only £46, which is the same price as the best recommended supplier.
Has anyone else had this problem?

footyguy

Gerry31 wrote: »

Looking to switch and after having entered the exact kWh consumption and tariff, etc with Scottish Power, the switch calculator estimated a current monthly spend of £62 when infact it's only £46, which is the same price as the best recommended supplier.
Has anyone else had this problem?

No, can't say I have. But then I look at annual costs of various tariffs for my own usage and supply region.

[Deleted User]

The current monthly spend by the calculator will look at how long your current fixed deal's have left (time wise) and then for the rest of the year use that supplier's standard tariff.

So if you fixed ends in 1 month's time, the calculator will use 1 month at the fixed rate and 11 at the standard rates.

This is how OFGEM (the regulator) tells the switching websites to calculate the current costs.

System

gsmlnx wrote: »

The current monthly spend by the calculator will look at how long your current fixed deal's have left (time wise) and then for the rest of the year use that supplier's standard tariff.

So if you fixed ends in 1 month's time, the calculator will use 1 month at the fixed rate and 11 at the standard rates.

This is how OFGEM (the regulator) tells the switching websites to calculate the current costs.

The effect of the Ofgem methodology is to artificially inflate costs and thus savings. It has no effect whatsoever on the annual cost on each of the tariffs listed in comparison tables. This is a simple mathematical sum based on usage, standing charges, and unit cost minus any applicable discounts.(plus VAT)

I confess that I have never seen the issue that the OP has described. I have seen small price differences between supplier and comparison sites which is usually down to VAT.

dogshome

gsmlnx is absolutly right - Welcome to the Disney Land fantasy world created by Ofgem.

If you investigate the Switch sites and are part way through a fixed tariff, the quotes you get are for a 12 month supply, but these are based the number of days that left on your current contract, with the remaining days to take the total up to 365, costed on 'Standard' tariff rates

My choice of site to deal with this is switchwithwhich who show the individual costs of each part of the quote

backfoot

When I pointed out to OFGEM that there was widespread concern about some of the misleading results produced by this methodology they referred me back to the Confidence Code and said they would file my concerns.

These misleading results are amplified because of the huge differential between online and standard prices. In the case of EDF that differential is an eye watering 61%.

An alarming and embarrassing outcome which ,so far, OFGEM didn't want to comment on.

Autumnella

Is your account currently in credit? Could your current figure of £46 be that low as it takes into account the credit on your account?

System

dogshome wrote: »

gsmlnx is absolutly right - Welcome to the Disney Land fantasy world created by Ofgem.

If you investigate the Switch sites and are part way through a fixed tariff, the quotes you get are for a 12 month supply, but these are based the number of days that left on your current contract, with the remaining days to take the total up to 365, costed on 'Standard' tariff rates

My choice of site to deal with this is switchwithwhich who show the individual costs of each part of the quote

With respect, you are confusing the calculation for projected savings for customers on fixed term contracts with LESS than 12 months to run and annual tariff costs. The flawed Ofgem methodology inflates costs and therefore savings: it doesn't artificially increase the monthly DD payment. The default position with this methodology is that when a fix comes to an end, the customer will do nothing and the tariff will change to the supplier's standard variable tariff.

For example, MSE CEC shows that I am 4 months into a 12 month contract with Zog at an annual cost of £277. This agrees 100% with the supplier's website and my monthly bills. It also shows that the next 'cheapest' tariff for me would be with Daligas costing me £14 more at £291 per year. If I click on More Info, it shows me the tariff in terms of standing charges and unit prices - again no difference from the supplier's website.

If I rollover at the end of my contract and do nothing, then my annual cost will rise to £395 because my contract will move from fixed term to standard variable rates. This is a tariff change.

If you believe that I am wrong, then please show a specific example. Have a look at the MSE CEC first.

[Deleted User]

From the CEC website for my tariffs

YOUR 12-MONTH
PERSONAL PROJECTION
£808/year
This is the way Ofgem suggests your costs should be calculated. It is how much you'll pay over the next 12 months, assuming you don't switch. The calculation is based on 321 days on your current gas tariff and 44 days on your gas standard tariff, as well as 181 days on your current electricity tariff and 184 days on your electricity standard tariff.

WHAT YOU'RE CURRENTLY PAYING
£698/year

molerat

The monthly "what you are currently paying" is simply 1/12th of your annual consumption based on the figures you input. What you are actually paying by DD often bears no relationship to actual consumption. The important numbers to compare are the annual cost of the old tariff and annual cost of the new tariff.

backfoot

molerat wrote: »

The important numbers to compare are the annual cost of the old tariff and annual cost of the new tariff.

Definitely.

Somehow after a lengthy 'consultation' Ofgem chose to insist on something completely different and misleading.:o