Switching energy companies question

sw1960

Hello,
Daft question: When you switch to a new cheaper deal which is fixed for a year, does this mean you are only charged the amount quoted e.g. £70 per month, and then after the year ends they review the last 12 months and charge from that point at the new rate, e.g. £100 per month.
Can they ask for money for the difference between the £100 and the £70 for the past year, or does it just increase from the 12 month date?


Thank you
Sorry, new to changing companies.

lewisa

The quoted months figure is based on the annual estimated consumption divided by 12.

They should review the consumption periodically and adjust the DD accordingly either to increase it to cover increased usage or to descrease if usage is less than previousy estimated.

Although it often doesn't happen like that because for some reason very few energy companies are able to use a calculator.

Best thing you can do is provide regular readings, at least 1 per month, and then you have data to argue with them if they are trying to increase your DD unnecessarily. Even then they are so stupid they will often ignore your data.

bonus2010

just to add, when you come to the end of your agreed fixed term price contract one of two things will happen:-

(a) you will be placed on your supplier's standard variable tariff (usually more expensive causing a rise in monthly DDs (eg Scottish Power does this)

or

(b) your supplier automatically puts you on their next cheapest tariff (happended when I was with Our Power.)

Don't rely on (b), check your supplier's T&C. most suppliers do just default to the standard variable tariff

but remember if your fixed term contract has exit fees if you leave early (change supplier) , this does not apply if you leave contract within 49 days before the contract expiry. (that's an OFGEM ruile)

JJ_Egan

The FIX is the PRICE not the usage .
Usually if you are using more than the estimate then the amount of the DD rises in contract .