The Cheap Energy Club tool is flawed and inaccurate

magiccake

Much fuss is being made on this site (and via the newsletters) about the upcoming energy price increases on April 1st.

Lots of the links in the newsletter etc. all point to MSE's Cheap Energy Club price comparison tool - but there's one huge problem with that; it's not accurate!

The tool does not take into account the price increases, so at the moment it's impossible to compare your current deal with the upcoming increased prices.

For example, I'm with Utilita energy. I switched less than one month ago at the recommendation of the Cheap Energy Club tool. Annoyingly, they have announced price increases too, so when I received MSE's newsletter which urges people to use the tool to switch, I was annoyed to see that the "old" Utilita prices are still being recommended as the cheapest deal available!

I understand the "new" increased prices have not yet come into effect, but the tool should REALLY take into consideration any known upcoming price increases so that people aren't misled into switching only to experience a price increase as soon as they're connected.


Plus, this website and the newsletter very much encourages people to "ACT NOW TO BEAT THE PRICE RISES!" but how can we "act now" when the information being given is misleading? Any poor sod who "acts now" and switches to Utilita at the recommendation of the tool is going to be bitterly disappointed when it turns out that Utilita will NOT actually be the cheapest provider in 4 days' time!


Is there an email or place we can provide feedback about this tool directly to its developers?

bonus2010

There's two types of energy agreement, a "fixed price" agreement and a "variable agreement".

The only way to beat short term energy supplier price increases is to change to the supplier offering the best fixed term contract, usually for a year at least. (which is why there's a recommendation to act quickly)

With a variable price contract, the energy supplier would be entitled to change the price every day if they wanted to do so, and I fail to see how a comparison site can be expected to compare anything other than the current price available on the day.

So if you're not wanting to be shocked over a price increase after switching best to go for fixed price term contracts.

Takmon

magiccake wrote: »

Much fuss is being made on this site (and via the newsletters) about the upcoming energy price increases on April 1st.

Lots of the links in the newsletter etc. all point to MSE's Cheap Energy Club price comparison tool - but there's one huge problem with that; it's not accurate!

The tool does not take into account the price increases, so at the moment it's impossible to compare your current deal with the upcoming increased prices.

For example, I'm with Utilita energy. I switched less than one month ago at the recommendation of the Cheap Energy Club tool. Annoyingly, they have announced price increases too, so when I received MSE's newsletter which urges people to use the tool to switch, I was annoyed to see that the "old" Utilita prices are still being recommended as the cheapest deal available!

I understand the "new" increased prices have not yet come into effect, but the tool should REALLY take into consideration any known upcoming price increases so that people aren't misled into switching only to experience a price increase as soon as they're connected.

Plus, this website and the newsletter very much encourages people to "ACT NOW TO BEAT THE PRICE RISES!" but how can we "act now" when the information being given is misleading? Any poor sod who "acts now" and switches to Utilita at the recommendation of the tool is going to be bitterly disappointed when it turns out that Utilita will NOT actually be the cheapest provider in 4 days' time!

Is there an email or place we can provide feedback about this tool directly to its developers?

They have to give at least 30 days notice of any price hikes to customers. So if someone switches to them on their current prices they won't be able to increase their prices for at least 30 days after they tell them.

This means they have time to move to another provider if they want.

magiccake

Takmon wrote: »

They have to give at least 30 days notice of any price hikes to customers. So if someone switches to them on their current prices they won't be able to increase their prices for at least 30 days after they tell them.

This means they have time to move to another provider if they want.

They sent me this email on the 26th of March i.e. 4 days before the price increase. I do notice in the small print of the email it says they "won't enforce" the change if I decide to leave within 20 days of the email, but that's beside the point.


The real point I am trying to make is that it's impossible to use the MSE Energy Saving Club tool to see if you're getting the best possible deal unless it can take into account any upcoming price changes.



If I use the tool right now and I switch to another supplier (Bulb, for example) how do I know the new supplier hasn't already announced price increases unless I check every one of them manually, thus defeating the purpose of the tool?

Quentin

magiccake wrote: »

If I use the tool right now and I switch to another supplier (Bulb, for example) how do I know the new supplier hasn't already announced price increases unless I check every one of them manually, thus defeating the purpose of the tool?

If you opt for a variable tariff then the price is never fixed, and can change at any time

The CEC can notify you about any better deal than your current one to switch to if you select that option. You choose at what level of savings you want to be informed

Once selected you get an email advising that you can save by switching

jcontest

magiccake wrote: »

They sent me this email on the 26th of March i.e. 4 days before the price increase. I do notice in the small print of the email it says they "won't enforce" the change if I decide to leave within 20 days of the email, but that's beside the point.


The real point I am trying to make is that it's impossible to use the MSE Energy Saving Club tool to see if you're getting the best possible deal unless it can take into account any upcoming price changes.



If I use the tool right now and I switch to another supplier (Bulb, for example) how do I know the new supplier hasn't already announced price increases unless I check every one of them manually, thus defeating the purpose of the tool?

My wife gets mad at me when I buy vacation currency too.
It seems that I am never able to purchase it at the lowest price point possible. Had I only waited a few more weeks, or purchased a few weeks earlier.


I can see your point however. If a supplier has announced a price change, then the comparison tool should take that announced price as the price for the product your going to receive.


Personally I switched to a fixed price contract and generally I prefer them for this reason. Not real sure how the next few weeks will play out, but you should count on energy cost going up regardless of any outcome.

Hasbeen

jcontest wrote: »

My wife gets mad at me when I buy [STRIKE]vacation[/STRIKE] HOLIDAY currency too.

Steady on. Were the not the 51st state yet:rotfl:

ecclebrick

I agree with you on this, as I have complained about it already on this forum.
It is specifically bad for Economy 7/10 customers as fixed prices are rare.
You just have to look closely at the Tariffs being used in the Comparison, otherwise it's not accurate.

Takmon

jcontest wrote: »

My wife gets mad at me when I buy vacation currency too.
It seems that I am never able to purchase it at the lowest price point possible. Had I only waited a few more weeks, or purchased a few weeks earlier.

You are wasting money by buying currency before a trip so i'm not surprised she gets mad . You will always get a better, almost perfect, exchange rate if you use a no fee card for spending and cash withdrawal while your abroad.

jcontest

Takmon wrote: »

You are wasting money by buying currency before a trip so i'm not surprised she gets mad . You will always get a better, almost perfect, exchange rate if you use a no fee card for spending and cash withdrawal while your abroad.

I have a Curve card, works well-ish. I tend to visit a 3rd world country that doesn't have good banking at all. (USA). Currency can easily swing 5%-6% through the year, so I have done quite well in the past by making assumptions of when to buy ....

Takmon

jcontest wrote: »

I have a Curve card, works well-ish. I tend to visit a 3rd world country that doesn't have good banking at all. (USA). Currency can easily swing 5%-6% through the year, so I have done quite well in the past by making assumptions of when to buy ....

If curve is your only card then it's definetly worth getting atleast one other just incase their are issues. Plus curve has limitations on cash withdrawals then your charged extra fees.

If your changing cash then you can quite easily loose 6%+ right away by getting poor exchange rates. What I always say is that if you think you can predict currency fluctuations you will become a very rich person by trading FOREX. But when travelling abroad just take the right cards and get the best possible rate at the time you are there.