Supplier Switching, Misleading? Savings? Really.

BenjyBoo

Can you tell me if I am being mislead by U Switch and Compare the meerpuss?
After giving all the correct details regarding my current supplier, usage and tariff I'm told I will save £536.70 if I change this other provider.
Is my math correct?

My current provider supplies ELECTRICITY at 12.99p per kWh we used 2315kWh = £300.72
Standing Charge at 26.86p for 88 days = £23.63
Plus 5% VAT (£16.21) Total Electricity Bill £340.56

My current provider supplies GAS at 2.85p per kWh, we used 3736.33kWh = £106.48
Standing Charge at £21.14p for 88 days = £18.60
Plus 5% VAT (£6.25) Total Gas Bill £131.33

Combined Gas and Electricity £407.20

The supplier I'm told I should choose because it will be £536.70 cheaper rates are

New Provider ELECTRICITY at 13.36p per kWh (say we use same amount) 2315kWh = £309.28
Standing Charge at 22.84p for 88 days = £20.10
Plus 5% VAT (£16.47) Total Electricity Bill = £345.85

New Provider GAS at 2.263p per kWh (say we use the same amount) 3736.33kWh = £84.55
Standing Charge at 22.84p for 88 days = £20.10
Plus 5% VAT (£5.23) Total Gas Bill £109.88

This works out that the new supplier would be more expensive by £5.29 for Electric and £21.45 less for Gas. How will I be better off by £536.70 per year? 

MalMonroe

I've switched three times in the last two years and have ended up paying more than I've ever done before. It's all wrong, and a con and what have you.  I have even complained to the Energy Ombudsman, which got me absolutely nowhere. You aren't going to be better off, if anything you will be worse off.  My advice : choose the one that looks best and go for that one, if you don't have to pay any exit fees, so much the better. Energy comparison is really all a load of rubbish, in my experience anyway!

Neil_Jones

MalMonroe said:

I've switched three times in the last two years and have ended up paying more than I've ever done before. It's all wrong, and a con and what have you.  I have even complained to the Energy Ombudsman, which got me absolutely nowhere. You aren't going to be better off, if anything you will be worse off.  My advice : choose the one that looks best and go for that one, if you don't have to pay any exit fees, so much the better. Energy comparison is really all a load of rubbish, in my experience anyway!

Don't be ridiculous.  Take the "savings" from comparison sites with a pinch of salt and always do your own calculations.

As for payments, I assume you're referring to the direct debits, then that's not your bill and I suggest you research on how energy direct debits work:  https://www.moneysavingexpert.com/utilities/lower-energy-direct-debits/

To the original poster, your gas usage looks a bit low if you're only using two thousand kilowatts of electricity as well.  But anyway the "saving" of £536 is almost certainly caused by what would happen when the tariff expires and you roll onto a default tariff instead of taking no action.  That's the default for comparison sites.

Talldave

As @Neil_Jones points out, most comparison sites work on the assumption that when your existing tariff ends you'll do nothing and end up on your supplier's standard expensive rates. The alleged "savings" will therefore be greater the closer to the end of your current deal you are, because you would spend more of the coming 12 months on the expensive tariff. 

Forget the savings, use comparison sites to find the cheapest deals and look at just the total cost figures.

It looks like you didn't search all suppliers (ie: include those who don't give uSwitch a backhander) because those rates are not great. For some unfathomable reason,  suppliers who don't hand out large amounts of cash to get your business tend to be cheaper.

enjoli23

BenjyBoo said:

Can you tell me if I am being mislead by U Switch and Compare the meerpuss?
After giving all the correct details regarding my current supplier, usage and tariff I'm told I will save £536.70 if I change this other provider.
Is my math correct?

My current provider supplies ELECTRICITY at 12.99p per kWh we used 2315kWh = £300.72
Standing Charge at 26.86p for 88 days = £23.63
Plus 5% VAT (£16.21) Total Electricity Bill £340.56

My current provider supplies GAS at 2.85p per kWh, we used 3736.33kWh = £106.48
Standing Charge at £21.14p for 88 days = £18.60
Plus 5% VAT (£6.25) Total Gas Bill £131.33

Combined Gas and Electricity £407.20

The supplier I'm told I should choose because it will be £536.70 cheaper rates are

New Provider ELECTRICITY at 13.36p per kWh (say we use same amount) 2315kWh = £309.28
Standing Charge at 22.84p for 88 days = £20.10
Plus 5% VAT (£16.47) Total Electricity Bill = £345.85

New Provider GAS at 2.263p per kWh (say we use the same amount) 3736.33kWh = £84.55
Standing Charge at 22.84p for 88 days = £20.10
Plus 5% VAT (£5.23) Total Gas Bill £109.88

This works out that the new supplier would be more expensive by £5.29 for Electric and £21.45 less for Gas. How will I be better off by £536.70 per year? 

When does your current tariff end?

Have you included the cost of the suppliers very expensive default tariff for the remainder of the 12 months following the end of your current tariff? Because that is what you'll be paying if you don't switch.

BenjyBoo

I understand now that the savings have got to be if you didn't switch and ended up on you current suppliers most expensive tariff. But how does that help us who always tend to switch, we are looking to better the deal we already had with our current supplier? 
Instead we find increases in the standing charge and price per kWh to our current ending tariff by coming to the "cheaper" new supplier.
I'd like to find a comparison site that asks what your current kWh rate is and standing charge and find a cheaper one. 

Talldave

The comparison site needs to know how much you use as well!

BenjyBoo

Talldave said:

The comparison site needs to know how much you use as well!

It does and I put those figures in too. 

Talldave

The sites do what you want - find you the cheapest deal for your consumption profile.  You just need ignore the "savings" figure, that's all. They're sorted in price order, so cheapest is at the top.

Petriix

The MSE Cheap Energy Club has the option (and recommendation) to show savings based on the current rate rather than the made up variable rate that you won't be stupid enough to end up on. I use that.

It's worth having a look at whether separate suppliers would be cheaper, but possibly not worth it for a few £ as there is double the chance of having issues with billing etc. It's worth regularly checking because new deals pop up all the time although some of the cheapest prices from a couple of months ago have disappeared.

One final consideration is that some suppliers with higher prices offer large incentives for switching and referrals. I was with Bulb for 8 months in which time I received £285 bill credit against total energy charges of < £500. Once I had exhausted the referrals I  received a large refund into my bank account before switching away to a more competitively priced deal.

BenjyBoo

I pay by monthly direct debit and switching to the above is also apparently going to save me £48 a month on my current direct debit. How when the new supplier is £5.29 per quarter more expensive for Electric and only £21.45 less for gas per quarter. £48 x 3 =£144. 
*The comparison sites used have all my current supplier information, tariff details and usage from the original supplier bills.