Best way for energy deals?

rob84_2

Just started using the Energy Club but I need some clarifying, MSE is showing up a lot of fixed year deals as good deals but surely getting the best deal would come from bouncing around on variable deals as much as possible to catch them when theres a decrease in price? Should i set the comparison to only show variable or should i leave it at all tariffs?

Also, is it worth going dual fuel or separate?

victor2

If prices are in general going up, then hopping around from one variable rate to another could cost you more in the long term than getting a one year fix. You may pay a bit more for the fix initially, but in 1 year ALL variable rates could be higher than your fix. Nobody can say with any certainty what rates are likely to be a year in the future, so it's a gamble.
You can lessen the financial risk by taking a fix with no exit penalties, then if prices do fall and cheaper fixes come along, it costs you nothing to change.

Dual fuel tariffs are not as appealing as they used to be. Suppliers would offer discounts for taking both fuels with them. Now, thanks to OFGEM's enforcement of "simpler" tariffs, they can't do that. If you are prepared to run separate accounts for each utility, it can be cheaper than a dual fuel tariff.

System

victor2 wrote: »

Dual fuel tariffs are not as appealing as they used to be. Suppliers would offer discounts for taking both fuels with them. Now, thanks to OFGEM's enforcement of "simpler" tariffs, they can't do that. If you are prepared to run separate accounts for each utility, it can be cheaper than a dual fuel tariff.

Not completely true. From the Ofgem website:

Quote: Cash discounts will be simplified. Suppliers will only be able to offer two cash discounts, one for dual fuel (where a consumer takes gas and electricity from the same supplier) and one for managing your account online. These will be displayed in a simple pounds-per-year format. We are also banning restrictive discounts which made it difficult to compare the costs of tariffs. Unquote

It is worth pointing out that these discounts are applied to the daily standing charge. It follows that on a fixed contract, the daily standing charge isn't actually fixed. Cancellation of a DD mandate can result in the supplier removing the discount and therefore the customer paying a higher standing charge.

It is also worth pointing out that:

a. Many fixed deals from smaller suppliers now come without exit fees.

b. Many fixed deals come with cash back which equates to any future exit fee.

c. Some suppliers will now pay any exit fee if you switch to them. (eg; Bulb)

d. And one supplier, Powershop, offers a SVT but with a fixed (you will not pay anymore) guarantee for the first 12 months.

rob84_2

victor2 wrote: »

If prices are in general going up, then hopping around from one variable rate to another could cost you more in the long term than getting a one year fix. You may pay a bit more for the fix initially, but in 1 year ALL variable rates could be higher than your fix. Nobody can say with any certainty what rates are likely to be a year in the future, so it's a gamble.
You can lessen the financial risk by taking a fix with no exit penalties, then if prices do fall and cheaper fixes come along, it costs you nothing to change.

Dual fuel tariffs are not as appealing as they used to be. Suppliers would offer discounts for taking both fuels with them. Now, thanks to OFGEM's enforcement of "simpler" tariffs, they can't do that. If you are prepared to run separate accounts for each utility, it can be cheaper than a dual fuel tariff.

What would be the best way to work CEC then? If i get a fixed 12 months then any exit fees will offset any savings. Just a little confused about it tbh. CEC sounds great with the talk of moving around deals but seems to just show fixed deals as the cheapest.

Hengus wrote: »

Not completely true. From the Ofgem website:

Quote: Cash discounts will be simplified. Suppliers will only be able to offer two cash discounts, one for dual fuel (where a consumer takes gas and electricity from the same supplier) and one for managing your account online. These will be displayed in a simple pounds-per-year format. We are also banning restrictive discounts which made it difficult to compare the costs of tariffs. Unquote

It is worth pointing out that these discounts are applied to the daily standing charge. It follows that on a fixed contract, the daily standing charge isn't actually fixed. Cancellation of a DD mandate can result in the supplier removing the discount and therefore the customer paying a higher standing charge.

It is also worth pointing out that:

a. Many fixed deals from smaller suppliers now come without exit fees.

b. Many fixed deals come with cash back which equates to any future exit fee.

c. Some suppliers will now pay any exit fee if you switch to them. (eg; Bulb)

d. And one supplier, Powershop, offers a SVT but with a fixed (you will not pay anymore) guarantee for the first 12 months.

If the standing charge isnt fixed will that mean if they increase the price will it allow you a free termination since thats not part of the original contract?