How often can you change suppliers?

gtone28

Hi

I've just done a simple search on the forum and only found one thread with a similar Question.

How long do you have to stay with a supplier for if your in credit with them?

The question I found said that they had just changed supplier and then found another one which was cheaper.

I've been with my supplier for 12 months now.

Cardew

As often as you wish - there is no restriction.

However bear in mind it takes weeks or months to effect a change.

Also OFGEM have authorised utility companies to have tariffs with a 'tie in' period of 12 months - or leave with financial penalties.

IMO this is an excellent move as it will stop people constantly swopping for their 'free' champagne and Quidco cashback etc. All that does is increase profits for the parasitic comparison sites and increase hugely the administration costs of the Utility companies - which we all pay for in the end.

Stormy

Cardew wrote: »

As often as you wish - there is no restriction.

However bear in mind it takes weeks or months to effect a change.

Also OFGEM have authorised utility companies to have tariffs with a 'tie in' period of 12 months - or leave with financial penalties.

IMO this is an excellent move as it will stop people constantly swopping for their 'free' champagne and Quidco cashback etc.

Equally it might be highly annoying if the likes of BG keep revising its 'Click' Tarrif on an almost 6 monthly basis!

Click 1 > Click 2 had financial benefits, Click 2 > 3 didnt really (apart from people who got Quidco cashback) but the fact remains if suppliers start making you stay for 12 months on an incompetative tarif, while introducing tarifs which are better value but not allowing people to move all that will do is fill the utility companies pockets.

IMO not excellent at all.

Mike

MoneyMiser

Cardew wrote: »

As often as you wish - there is no restriction.

However bear in mind it takes weeks or months to effect a change.

Also OFGEM have authorised utility companies to have tariffs with a 'tie in' period of 12 months - or leave with financial penalties.

IMO this is an excellent move as it will stop people constantly swopping for their 'free' champagne and Quidco cashback etc. All that does is increase profits for the parasitic comparison sites and increase hugely the administration costs of the Utility companies - which we all pay for in the end.

Cardew,

Have you had a bad experience with a comparrison site or has one wronged you in a previous life. Maybe a comparrison site ran away with your best mate :rotfl:

Only kidding, but why are all your posts constanly slagging them off?

Do you have nightmares about energy helpline or uswitch chasing you yet your feet are constantly stuck to the ground? I mean if they are really as bad as you make them out to be why would Martin recommend them, surely not just to get the cash back offered.

nickmack

Cardew wrote: »

IMO this is an excellent move as it will stop people constantly swopping for their 'free' champagne and Quidco cashback etc. All that does is increase profits for the parasitic comparison sites and increase hugely the administration costs of the Utility companies - which we all pay for in the end.

I disagree, I think this is bad news for consumers.

OFGEM claimed that locking consumers into 12 month terms would enable energy suppliers to in bring eco-friendly contracts. However, they've left this up to the suppliers to encourage the consumer to become more energy efficient or even generate their own power. They're hardly likely to do this, for obvious profit reasons.

All this has really done is help the government meet the EU Energy Services directive by passing the buck to the energy suppliers. They in turn must be rubbing their hands together and may offer some token green gestures but nothing of any significance and nothing that would damage their profits.

Cardew

MoneyMiser wrote: »

Cardew,

Have you had a bad experience with a comparrison site or has one wronged you in a previous life. Maybe a comparrison site ran away with your best mate :rotfl:

Only kidding, but why are all your posts constanly slagging them off?

Do you have nightmares about energy helpline or uswitch chasing you yet your feet are constantly stuck to the ground? I mean if they are really as bad as you make them out to be why would Martin recommend them, surely not just to get the cash back offered.

Actually there are two fair and reasonable questions above.(I assume you don’t want a reply to the frivolous questions!)

Why am I slagging them off constantly?

Well firstly read the scores of posts from other posters complaining about the inaccuracies and misleading information.

Read the scores of posts from those complaining that they changed companies, seduced by the much lower Direct Debit and/or champagne/cashback arranged by the comparison sites, only to find themselves heavily in debt.

My objection is these sites are totally driven by the need to maximise their commission, and that does not sit easily with providing accurate and unbiased information to consumers.

They deliberately ‘point’ customers toward those companies that pay commission, regardless of whether that is the best deal for them ,or not. You may recall that BG published a letter from one comparison site that had offered them the chance to greatly increase their sales if they paid them more commission.

Some examples of their tactics:

1.Certain companies are excluded, or difficult to find.
Ebico is a good example. Earlier this year they were very competitive, if not the best for those with low consumption. They charge no tier1 rate/daily charge, their Direct Debit, quarterly and Pre-pay rates are all the same. A non-profit making organisation which, if the many posts on this forum are accurate, provides excellent service.

It was very difficult to find mention of them on some comparison sites. The reason? I wonder if it could have anything to do with the fact they pay no commission?

2. Star ratings for the service provided; according to who? If ever there was a subjective opinion ---- I wonder what influences that opinion?? Take a guess!

3. They rely on the fact that the average customer has no idea of the kWhs they use but know how much they pay on DD. Ring any comparison site and say I pay £xx a month on DD and they will quote you a lower DD. Doesn’t mean the customers are better off of course.
Try it – ring around and see what happens.
To say “no I can’t beat that” means no commission for the operator – can’t have that!

4. Promoting ‘free champagne’ & ‘money-back’ initiatives to persuade the unwary to move to a worse tariff.

So a lot of people get a poor deal from these companies, but why does this matter to the rest of us? Well these companies are simply parasitic and their huge profits are paid in the end by us the consumer.

On top of this all of the companies have huge staff simply to cope with the merry-go-round of customers changing companies – again an expense that falls to us in the end.

The last question is the most difficult “I mean if they are really as bad as you make them out to be why would Martin recommend them, surely not just to get the cash back offered.? Well at least to answer the question on this site.

Obviously I am a huge fan of this site, but understandably it is a commercial project, and the expenses to run it must be very high. He doesn’t charge a subscription like ‘Which’ so must get income from somewhere. He makes no secret that going to a comparison site via the link on this website provides income.

The fact that Martin endorses these companies for financial reward doesn’t make criticisms of the comparison websites any less valid!

far

So a part of the solution is to compare companies with actual usage figures not Direct Debit amounts and to be aware of actual tariffs. Do this and why can't you can switch with confidence? The commission involved does mean a switching site or QuidCo will make money but if the switch is for the better why not? Looks like the key here is consumer education.

Cardew

far wrote: »

So a part of the solution is to compare companies with actual usage figures not Direct Debit amounts and to be aware of actual tariffs. Do this and why can't you can switch with confidence? The commission involved does mean a switching site or QuidCo will make money but if the switch is for the better why not? Looks like the key here is consumer education.

I would totally agree with the above.

Used properly these sites can be useful, IF they do as you say i.e. use kWHs and look at actual tariffs to check the recommendation.

My point(as I made above) is that the average consumer simply does not appreciate that it is necessary to take those steps. He simply takes what these comparison sites say as 'gospel' especially when they are endorsed by respected sites such as MSE.

I also certainly wasn't suggesting that people shouldn't switch if it takes them to a cheaper tariff(and get whatever incentives are on offer). It is the subterfuge practiced by these sites that I find objectionable.