Switching when in a fix - early exit fee

hufc2002

Hi all
My energy is currently with EDF and is fixed until September.  I can now switch to a cheaper tariff i.e. British Gas (Energy & Boiler Cover May 2021) but I would incur  £70 exit fee.  The tariff works out £130 a year cheaper so even with the fee I would be £60 better off and can also get £25 cash back.  
Would you switch if in my situation?
Thanks

Gerry1

hufc2002 said:

The tariff works out £130 a year cheaper

Says who?  Have you done the sums yourself?  If it comes from a comparison website, forget it because Ofgem's rules are crazy.

hufc2002

Says me.  I have calculated this myself using the tariff information.

Gerry1

Have you compared the whole of the market, including suppliers such as Neon Reef, Gulf, Avro, Yorkshire Energy etc?  BG may not be the cheapest, and their Boiler Cover hasn't received many good reviews here.

hufc2002

I used the comparison tool here on MSE.  The boiler cover is a bonus - not something I necessarily require.
My initial question remains the same - would you switch in my situation?

cranford

So how  much will you save in the summer months until your current tariff ends?

Gerry1

hufc2002 said:

I used the comparison tool here on MSE.  The boiler cover is a bonus - not something I necessarily require.
My initial question remains the same - would you switch in my situation?

No, because the CEC doesn't show the whole market. I would consider switching having made a full comparison including separate suppliers, but gas prices may be falling.

dogshome

Annual consumption figures are fine for changing suppliers, but the calculation is not for 12 months, it's for May to September when the gas use will drop to appx 20% of the rest of the year, which skews the apparent saving and any Winter debt on the EDF account must be added to the £70 exit fee

Talldave

hufc2002 said:

Hi all
My energy is currently with EDF and is fixed until September.  I can now switch to a cheaper tariff i.e. British Gas (Energy & Boiler Cover May 2021) but I would incur  £70 exit fee.  The tariff works out £130 a year cheaper so even with the fee I would be £60 better off and can also get £25 cash back.  
Would you switch if in my situation?
Thanks

I'd consider switching to a supplier other than British Gas that would save me even more.

Biscuit_Tin

hufc2002 said:

Hi all
My energy is currently with EDF and is fixed until September.  I can now switch to a cheaper tariff i.e. British Gas (Energy & Boiler Cover May 2021) but I would incur  £70 exit fee.  The tariff works out £130 a year cheaper so even with the fee I would be £60 better off and can also get £25 cash back.  
Would you switch if in my situation?
Thanks

hufc2002 said:

Says me.  I have calculated this myself using the tariff information.

You obviously are capable of doing the sums, so you may need to do a few more to confirm, but on the face of it, I wouldn't bother but wait a couple of months and switch then when the switching window opens that avoids the £70 exit fees.

My reasoning is this:

You calculate you can save £130 per year, so in the next 2 months before the switching window opens, you will only save about £20-£30 at most (probably less once you take into consideration the lower seasonal usage)

But it'll cost you at least £45 to switch (£70 exit fee less the possible £25 cashback)

What you also need to consider though, is whether you think this new tariff (or one offering an equivilent saving) will still be available in a couple of months time. If you think prices are going to rise sharply, then secure the tariff now.

Cisco001

I have Gas and electric with separate company. This work out cheaper for the past 3 years.
I use energylinx for comparison. 

And I agree above, as the switching windows is 49 days, I would say just wait. You would be able to switch in Aug.

How is your calculation being done?
If you take out your last year bill which show actual usage for May to July, use those number to do the calculation.
I would be surprise you could save £70, knowing the fact that the usage of energy in summer is lower than winter.