Gas and Electric Rates

GSXRCarlos

Hi,

Has anyone else noticed that the comparison sites tell you you can save £300 a year, but then when you check the rates and standing charges the new plan actually works out more expensive?

i did the comparison based on my usage

For example: current electric standing charge is 0.19776 and unit rate is 0.10844. Gas is 0.19786 and rate is 0.02704

sainsburys are supposed to be £300/year cheaper but their standing charges are 0.336 and unit rates are 0.12443 for elec and 0.01449 for gas.

in one period (between meter readings) at home i used:

Elec 1043 units over 162 days = £145.55 on my current tarriff, this would be £184 on the sainsburys rates

Gas 121 units (23kwh) over 59 days = £ 12.30 on my current tarrif, this would be over £20 using the sainsbury's rates.

have i got this wrong?

footyguy

GSXRCarlos wrote: »

Hi,

Has anyone else noticed that the comparison sites tell you you can save £300 a year, but then when you check the rates and standing charges the new plan actually works out more expensive?

i did the comparison based on my usage

For example: current electric standing charge is 0.19776 and unit rate is 0.10844. Gas is 0.19786 and rate is 0.02704

sainsburys are supposed to be £300/year cheaper but their standing charges are 0.336 and unit rates are 0.12443 for elec and 0.01449 for gas.

in one period (between meter readings) at home i used:

Elec 1043 units over 162 days = £145.55 on my current tarriff, this would be £184 on the sainsburys rates

Gas 121 units (23kwh) over 59 days = £ 12.30 on my current tarrif, this would be over £20 using the sainsbury's rates.

have i got this wrong?

LOL - I don't think anyone has noticed this before.

Perhaps you should report the errors to Ofgem!:rotfl:

dogshome

Blame this on Ofgem, the regulator.

In botched effort to make a level playing field for tariff comparisions, they brought in this strange rule that when customers who were on a fixed tariff used a comparision site, the site had to assume that the customer would revert to their suppliers 'Standard' tariff at the end of the fix - However most sites have 2nd window that shows the calculation.

This crazy formula also encompasses your present supplier - Every bill I get from mine tells me I can save money by switching to their current fix, which would mean losing the lower prices on my present fix
The message is ignore the headlined savings figures listed on the Comp. sites and hunt down the prices per KWh and Standing Charge

Bigrachel

Smart. Agree with the previous comments.
However, the best thing I would do is play providers off each other. If someone is offering you a deal, call them, tell them your deal and see if they can beat it. It works almost every time!

footyguy

Bigrachel wrote: »

...
However, the best thing I would do is play providers off each other. If someone is offering you a deal, call them, tell them your deal and see if they can beat it. It works almost every time!

Totally agree. :money:

(not really!)

Sosumi

Bigrachel wrote: »

Smart. Agree with the previous comments.

However, the best thing I would do is play providers off each other. If someone is offering you a deal, call them, tell them your deal and see if they can beat it. It works almost every time!

Sadly, this will never work for any individual domestic customer. One is only permitted to haggle over the rates for business accounts. OFGEM forbids suppliers to cut deals with individuals for their domestic energy supply.

This is (at least) the second time you have posted this flawed advice. I'm sure you mean well, that your intent is to be kind and helpful, and that you are unaware of your error. But it's misleading to people.

dogshome wrote: »

Blame this on Ofgem, the regulator.

In botched effort to make a level playing field for tariff comparisions, they brought in this strange rule that when customers who were on a fixed tariff used a comparision site, the site had to assume that the customer would revert to their suppliers 'Standard' tariff at the end of the fix - However most sites have 2nd window that shows the calculation.

This crazy formula also encompasses your present supplier - Every bill I get from mine tells me I can save money by switching to their current fix, which would mean losing the lower prices on my present fix
The message is ignore the headlined savings figures listed on the Comp. sites and hunt down the prices per KWh and Standing Charge

The ironic thing about the OFGEM stipulated way of presenting energy savings in comparison results is that it is the one system that cannot be correct.

A fix is a fix, so it’s fixed. The tariff will not change during the currency of the fix. So, you can compare such fixes directly, accurately and reliably, taking into account for how long each one lasts.

Whereas, neither OFGEM, the comparison sites nor the suppliers know now what the Standard Variable Rates will be in eight (or whatever) months’ time. The clue, for anyone within OFGEM who has an iota of sense, is in the word VARIABLE.

And then, of course, nobody knows just how mild or severe next winter will be, and thus how much energy you will need to use for heating and will have to pay for, unless you’re going to be abroad or on a cruise for three months. A factor that no system provides for.

footyguy wrote: »

Totally agree. :money:

(not really!)

What a churlish posting. I'm sure she meant well and that her intent was kind, even if the advice was incorrect.

Bluebirdman_of_Alcathays

Bigrachel wrote: »

Smart. Agree with the previous comments.
However, the best thing I would do is play providers off each other. If someone is offering you a deal, call them, tell them your deal and see if they can beat it. It works almost every time!

No it doesn't. All they are doing is putting you on a tariff that you could get yourself without calling them.