Energy: Find the cheapest supplier & earn cashback

Zedicus

There seems to be a problem with the accuracy of this site.

If you are coming to the end of a fixed price deal it announces that it will use the standard tariff for the current supplier for the comparison. Fair enough, that is the rate you will be paying if you do nothing.

BUT: If you specify your usage by amount paid, it will assume that is based on the tariff they have substituted rather than the one you are actually paying on and this results in a considerable underestimate of usage which is then reflected in the savings it tells you you will make.

Consumerist

Zedicus wrote: »

. . . If you specify your usage by amount paid, . . .

Specifying usage by amount paid is really a last-resort method; it has always been fraught with difficulties concerning accuracy, no matter which comparison site is used. Use annual consumption (kWh) if you can.

tali

Consumerist wrote: »

Specifying usage by amount paid is really a last-resort method; it has always been fraught with difficulties concerning accuracy, no matter which comparison site is used. Use annual consumption (kWh) if you can.

Yes, this is the mistake i made in regard to my earlier posts when i got Sainsbury's quote
Next time it will be on useage!.
I think MSEClub should highlight/emphasize useage option in quote process

info_maniac

A naive question - why do most energy suppliers stick to DD as the method of payment? All this prediction and estimation malarkey is driving me crazy.

Surely, we can simplify things if we just pay each quarter by using the exact meter readings.

I am looking to switch today and after years of being on DD, I am inclined to go on a quarterly payment on receipt of bill option. Will I end up paying more as compared to being on DD?

I am with npower at the moment and it is almost impossible to understand their bills.

Also, I am not sure if they have managed to solve their recent issues with the billing system. I haven't had a bill for the past 6 months.

victor2

The theory behind DD payments is that you evenly spread your energy costs over the year, rather than having to find the money for the winter bill, which you haven't saved over from the cheaper summer one.
Plus the supplier knows they will get the regular payments, so are giving you less credit and don't have to spend so much chasing payments. In reality, it doesn't always work that way, with some suppliers loading their winter amounts to cover the increased usage. Discounts for paying by DD are largely disappearing too, thanks in no small part to Ofgem's insistence on simpler tariffs.
Good luck with nPower, by all accounts you'll need it!

EternallyGrateful

I guess it helps cash flow for both parties - supplier and consumer.
However, if you know how much gas and electricity you use and what tariff you're on then you can do the calculations yourself and keep track of what you're paying relative to usage.
I don't expect you would pay any more paying quarterly unless there's a penalty for not paying by direct debit (some of the communication companies adopt that policy)
What I really don't understand is why it's driving you crazy; it isn't that difficult.

EternallyGrateful

victor2 wrote: »

Discounts for paying by DD are largely disappearing too, thanks in no small part to Ofgem's insistence on simpler tariffs.

Fallen into the trap! It's not a discount it's a penalty for you not doing what's convenient for them!

ohreally

victor2 wrote: »

Plus the supplier knows they will get the regular payments, so are giving you less credit and don't have to spend so much chasing payments.

Using that logic the supplier can continue to collect regular payments by DD by sending out a bill for fuel used on a quarterly basis, no?

info_maniac

I just did a comparison on energyhelpline and the 'pay on receipt of bill' tariffs come up as considerably expensive as compared to the 'Monthly DD payment' ones.

Looks like, there is no way out of this trap.

jazzist

I started a dual fuel switch to Npower at the beginning of October (2nd Oct 2013). I received an email from energy club on 11th December 2013 saying my switch had completed but I have yet to receive my cashback or my promised one night free voucher code. I really wanted this so I could take my wife for a night away for her birthday in early April.

:mad: