Predicted prices depend on year end cashback (discount) - 12 month minimum

kento_2

Beware that advice on switching supplier, both on this website and with the 'switchers', says very little of the need to complete 12 months with some suppliers to get the year end discount which is already calculated into the costings given by the switching websites.

Getting this cashback is essential for achieving the total spend predicted for their tariffs.

BUT during this 12 month period you are completely at risk that the supplier increases prices and that your selection will NOT turn out to be the cheapest deal.

Once the 12 months is up you then need ANOTHER full 12 months to get the next years discount. So you will always have the dilema that future switching could loose you a substantial discount.

Some research is needed on how the various suppliers give their discounts.

nick74

Yes very good point.

Also something I noticed when I left British Gas was that they briefly transfered me back to their standard tariff (from Click2) because I cancelled my direct debit early.

The reason I cancelled the DD was that I had built up a credit balance more than sufficient to cover my usage up to the switch date, and saw no point in letting them take yet another months DD payment to build this credit balance even further. When they noticed I'd cancelled it they dropped me onto their standard tariff as I wasn't technically paying by DD any more. Sneaky!

Terrylw1

Thats very true, the dual fuel discounts are one possibly thing to consider.

Nick74 - not suprised on that. The thing to remember is, how do you know you have covered the amount required up to your Change Of Supplier? I guess if you had a lot of credit, you would. However, your Supplier would not and if you cancelled before you instigated the switch, they just assume you are not paying by DD anymore. I know it sounds daft, but Suppliers offer these discounts on DD because they consider you a good, easry customer to manage. Receipt Of Bill (ROB) are more risky because they don't know how or whether you will pay. So, you were considered more at risk to them. You could have had £1m in credit and a computer somewhere will only do what it's told and swap you over.

However, you cannot change a customers tariff without informing them per Ofgem. take it they just did it and popped you a letter out after!

nick74

Terrylw1 wrote: »

Nick74 - not suprised on that. The thing to remember is, how do you know you have covered the amount required up to your Change Of Supplier?

I read my meters once a week and record the figures on a spreadsheet.
The spreadsheet I've set up with formulas to tell me how much its cost with my supplier, and how it would have cost with various other suppliers
Yes I know its sad, but I'm an accountant and this sort of thing is par for the course unfortunately :rolleyes:

Terrylw1

Hi Nick,

Thats good. I tend to do the same. I'm religious about readings too as I used to be in the utility bus and saw all the daily cobble ups made by Suppliers.

I wish utilities did what you do, your spreadsheet will be far more accurate than their billing systems.

I just meant that is how they would view it.