The truth or not the truth that is the question

Richt99_2

I previously used uSwitch and it was a simple and hassle free process and I saved money, excellent. However, I have recently switched again but on this occasion, I used another site as it came down to price and value add.

However, during the process, I find a general frustration with the whole switching process as all the comparison sites do the same thing and to me, ‘don’t’ quite tell the truth’ the whole truth. What I am looking for is savings that can be made against my current tariff / provider. All sites show I can save £200 - £300 but that is simply not true as the comparison is against a personal projection and not against my usage but rather the average consumption.

Logic dictates that I answer the question and show my KwH for the year and based on x% increase in the year against current price or KwH, I would be forecast to save, or not, y amount of money.

In my case, I went through all sites and all said, save 'loadsa money'. In reality, the actual saving was zero, and in fact the price went up by circa £125 - £155 against my current cost, yet I am still led to believe that I save £200 - £300, which is not true. This is all because it’s a personal projection on average consumption.

How can this process be sold to the masses when this happens and makes it more frustrating and confusing. I hope it's not just me and some of you savvy savers may well have an answer to this. So, I've switched anyhow as it was still a smaller increase than if I stayed where I was a complete disincentive.

I have ended up worse off overall in any case erstwhile still being told I can save money! :mad:

chris-j

This has always been the case with switching sites. They have an arbitary average for Gas and Electricity and use this for their headlines, but as soon as a person puts in actual reading in KWh (rather than monthly payments) the reality comes home that in fact your savings will more likely be much smaller.
I have been with EDF for a number of years and switched regularly to alternate tariffs and despite the recent bad press for them putting prices up again, I am currently showing the lowest price in my area.

Truth is the savings are always against Standard Variable Rates, the people using these sites are most likely to be on fixed tariffs already which will be lower anyway and therefore savings will be less.

The energy companies however do themselves little favours because they make it quite difficult to see what their tariffs are without having to complete details for a quote so switching sites have a captive audience because they only put details in once.

d0nkeyk0ng

I ended up creating a spreadsheet of my usage and of tariffs.
So I can enter the unit price for gas and electricity, the respective standing charges and it will tell me the total cost (minus any discounts) for that tariff using the last twelve months' gas and electricity usage.

I've found the savings are smaller but not tiny. The ones by switching sites seem to show the savings against the "standard" tariff rather than your current tariff.

System

All switching sites allow you to enter your projected usage in kWhs of gas and electricity per year. Moreover, all Ofgem-accredited PCWs are required to use the approved cost projection method based on the cost over the next 12 months from now. Some sites, like MSE CEC, also offer a simple this is what you are paying for 12 months on your present tariff compared to 12 months of these tariffs.

The Ofgem savings calculation is not always based on the SVR. For example, someone 6 months in to a 2yr fixed contract will end up with a comparison of 12 months on the present tariff as the basis for the calculation. That said, savings should always be ignored if a comparison is made when a consumer is on a fixed tariff with less than 12 months to run.

OP - if you found any savings after 8 months of price increases then (a) you were either very diligent in your research or (b) you haven't been on a very good tariff for the past 12 months or (c) you been taken in by Ofgem's inflated savings methodology which gives an increased annual cost as the basis for the saving. If it is (c) then you can end up with a saving that costs you more for the coming 12 months.

dogshome

Try 'switchwithwhich' and enter your annual consumptions in KWh

Their site will come up with a detailed tariff of the company you are exploring, side-by-side with that of your present supplier

phillw

Richt99 wrote: »

In my case, I went through all sites and all said, save 'loadsa money'. In reality, the actual saving was zero, and in fact the price went up by circa £125 - £155 against my current cost, yet I am still led to believe that I save £200 - £300, which is not true. This is all because it’s a personal projection on average consumption.

Once you've entered your yearly usage into a site then it will use that. You could save £300 and still pay £155 a year more than you are this year, because when your fixed deal comes to an end you don't have the option of paying what you're currently paying.

The saving is calculated against the awful tariff that you'll fall onto if you don't switch, not against the cheaper expired tariff that you can't get anymore. So stay where you are and pay £455 a year more than last year or switch and only pay £155. I fail to see how that would not be a saving of £300.

If you're in the middle of a fix then it's likely that any "save £200-£300" are actually more expensive than what you pay now, but they are aimed at people who aren't on a fix.

footyguy

Richt99 wrote: »

I previously used uSwitch and it was a simple and hassle free process and I saved money, excellent. However, I have recently switched again but on this occasion, I used another site as it came down to price and value add.

However, during the process, I find a general frustration with the whole switching process as all the comparison sites do the same thing and to me, ‘don’t’ quite tell the truth’ the whole truth. What I am looking for is savings that can be made against my current tariff / provider. All sites show I can save £200 - £300 but that is simply not true as the comparison is against a personal projection and not against my usage but rather the average consumption.

Logic dictates that I answer the question and show my KwH for the year and based on x% increase in the year against current price or KwH, I would be forecast to save, or not, y amount of money.

In my case, I went through all sites and all said, save 'loadsa money'. In reality, the actual saving was zero, and in fact the price went up by circa £125 - £155 against my current cost, yet I am still led to believe that I save £200 - £300, which is not true. This is all because it’s a personal projection on average consumption.

How can this process be sold to the masses when this happens and makes it more frustrating and confusing. I hope it's not just me and some of you savvy savers may well have an answer to this. So, I've switched anyhow as it was still a smaller increase than if I stayed where I was a complete disincentive.

I have ended up worse off overall in any case erstwhile still being told I can save money! :mad:

Don't look at the savings - look at the annual cost

All comparison sites are required to show savings figures in accordance with the accepted method of calculation as stipulated by Ofgem. This can cause issues if you are on a fixed tariff that is due to end within 12 months as at the end of the contract the Ofgem rules dictate that the savinbgs figures are based on you going onto your current supplier's variable tariff ...which you will do unless you make other arrangements.
No one can possibly know what future arrangements you may make.

Some comaprison sites such as the CEC or EHL (there may be others) also offer alternative methods of calculation (theoretical, historical calculations)

But if you just look at annual costs of tariffs, you won't go too far wrong
(Beware of variable tariffs as calculations do not reflect prices may well vary over the term)

Good luck!

Bigphil1474

U-switch have an option to compare the projected cost against the next 12 months if your deal is due to expire, or compared against your current tariff - just noticed that today. One is based on what you've got left of your current deal then onto variable, and the other is against if you were on your current deal for 12 months.
This year, more than previously, I've noticed a bigger difference in prices when comparing dual fuel against 2 single fuel tariffs. The cheapest dual fuel is £111 a year extra for me (next one down is £122 extra pa), compared to a combined cost of £70 a year extra for the cheapest if I use 2 different suppliers - however, there were at least 15 different suppliers that could keep extra cost below £100 on single fuel deals. Makes it a bit more complicated for me, but I suspect it's the retailers way of making a bit extra profit.

molerat

Bigphil1474 wrote: »

U-switch have an option to compare the projected cost against the next 12 months if your deal is due to expire, or compared against your current tariff - just noticed that today.

Maybe I will put them back on my list now, I stopped using them when they were OFGEM mandated method only.

edit: they don't show my current electric tariff