Sneaky energy companies

Legacy_user

My bill said I could save money by switching tarrifs within my supplier, I did a quick check on Uswitch and there was only one cheaper deal elsewhere that came with exit fees, so I decided against that.

So I called my company and the helpful customer service guy explained to me that when it says "you can save X amount" that that saving is largely just for not going onto standard variable rate! It turned out actually that the new deal had higher unit costs! He advised me to wait and switch later, which I will do

So that explains one of the great mysteries of the universe, the unrealistic and seemingly random "savings" you can make, even when you've only just switched

Not only that, apparently the unit prices quoted are not always inclusive of VAT
Why would a home customer want to know the price before VAT?!!!

So I commend the customer service guy and am cynical towards the company

Cardew

I believe that all prices must now be quoted VAT inclusive.

However the thrust of your post is accurate. Ofgem issued an edict for companies to simplify tariffs and we now have a situation that makes the jungle of mobile phone charges seem straightforward.

footyguy

MatthewAinsworth wrote: »

My bill said I could save money by switching tarrifs within my supplier, I did a quick check on Uswitch and there was only one cheaper deal elsewhere that came with exit fees, so I decided against that.

So I called my company and the helpful customer service guy explained to me that when it says "you can save X amount" that that saving is largely just for not going onto standard variable rate! It turned out actually that the new deal had higher unit costs! He advised me to wait and switch later, which I will do

So that explains one of the great mysteries of the universe, the unrealistic and seemingly random "savings" you can make, even when you've only just switched

Not only that, apparently the unit prices quoted are not always inclusive of VAT
Why would a home customer want to know the price before VAT?!!!

So I commend the customer service guy and am cynical towards the company

Can I ask which supplier that was please?

Because in a sample of 3 different suppliers, I found in all cases they quoted both calculation methods on the bill.
(i.e. what your current annual consumption is likely to cost you if you do nothing, and what your current annual consumption would have cost you for 12 months based on current tariff prices)
Actually, in the case of SSE, this is actually shown on the annual statement that appears to be issued with every bill.

footyguy

Cardew wrote: »

I believe that all prices must now be quoted VAT inclusive.

However the thrust of your post is accurate. Ofgem issued an edict for companies to simplify tariffs and we now have a situation that makes the jungle of mobile phone charges seem straightforward.

In my sample, yes all suppliers quoted prices including VAT when calculated as Ofgem directs.

However one supplier, iSupply, chose confusingly to quote the cost of the consumption at current tariff costs excluding VAT
(although it is clearly stated the cost excludes VAT)

Edit: But as for unit prices
Zog only show the unit price including vat (but does the calculation excluding VAT and then adds the VAT)
iSupply states prices excluding VAT and adds the VAT at the end
SSE state the price excluding VAT and adds the VAT at the end in the actual bill ... but you can find the unit price including VAT on the annual statement I referred to

System

I worry about libel by naming them but its one of the big 6

Looking at my bill the vat is added at the bottom so the numbers in the table are pretty VAT, so you have to do a calculation to compare, or if you didn't realise about the VAT they would look cheaper to those glancing over

The "could you pay less bit" does say over 12 months and does mention the SVR but I didn't realise at first and a monthly look would be more helpful

System

* pre-vat (predictive text)

Cardew

footyguy wrote: »

In my sample, yes all suppliers quoted prices including VAT when calculated as Ofgem directs.

We are at cross-purposes about VAT.

Without trying to be pedantic the OP stated:

Not only that, apparently the unit prices quoted are not always inclusive of VAT
Why would a home customer want to know the price before VAT?!!!

The Ofgem directive states that the prices quoted must be VAT inclusive; so comparisons can be easily made.

That does not apply to bills. British Gas add the VAT at the bottom of the bill. e.g. Bill = £100: Vat = £5: Total = £105

SwanJon

MatthewAinsworth wrote: »

I worry about libel by naming them but its one of the big 6

No need to worry if it is true. Have a look around the forum - plenty of people happy to name and shae (or more rarely, praise).

Cardew wrote: »

That does not apply to bills. British Gas add the VAT at the bottom of the bill. e.g. Bill = £100: Vat = £5: Total = £105

We were always told that bills were calculated this way (VAT last) to avoid 'discounting VAT', so VAT is applied after all discounts.

Net result is the same, but it keeps the finance team happy.