Eversmart Family Saver Tariff

ashleybristow10

A newbie here....!

Has anyone had any exposure to the latest type of offer from Eversmart.

They promise the cheapest fixed tariff on the market and they'll add 12% annual interest to your credit balance. But, the catch is you have to pay for 1 year of energy upfront.

What would happen if the company went insolvent would you 'lose your money?

Thx, Ashley

wavelets

https://www.moneysavingexpert.com/news/2018/10/you-can-now-pay-upfront-for-your-energy-for-the-next-year---but-/

System

ashleybristow10 wrote: »

A newbie here....!

Has anyone had any exposure to the latest type of offer from Eversmart.

They promise the cheapest fixed tariff on the market and they'll add 12% annual interest to your credit balance. But, the catch is you have to pay for 1 year of energy upfront.

What would happen if the company went insolvent would you 'lose your money?

Thx, Ashley

All credit balances are now 100% covered by the Ofgem SoLR Consumer Levy. Who pays the Levy: all energy consumers contribute towards the cost of failed suppliers.

As an aside, I am struggling to see how a 1% monthly interest payment on a reducing credit balance equates to 12% interest. Perhaps someone could explain.

wavelets

Hengus wrote: »

All credit balances are now 100% covered by the Ofgem SoLR Consumer Levy. Who pays the Levy: all energy consumers contribute towards the cost of failed suppliers.

As an aside, I am struggling to see how a 1% monthly interest payment on a reducing credit balance equates to 12% interest. Perhaps someone could explain.

https://www.moneysavingexpert.com/news/2018/10/you-can-now-pay-upfront-for-your-energy-for-the-next-year---but-/

You also get 1% interest each month on this credit – after the supplier takes off your monthly use.

You could actually get more than 12% per year - Google "compound interest" if you'd like to learn more about how

Obviously the exact amount you receive in interest over the year will depend on your month by month usage, and any surplus you may have at the end of the year.