Is it a good idea to switch from Yorkshire Energy?

[Deleted User]

Hi expert tribe!
A year ago I switched from Scottish Power to YorkShire Energy, as Scottish was charging me roughly £60 pm and Yorkshire offered me a good tariff of £39.53 pm.
However, my consumption was higher and now I'm in a £172 debit, my contract is due for renewal in 24 days, so this means the debit will probably go lower as it's summer so I'm not using heaters at all.
By doing ballpark figures my last year consumption was £634.36.
However, as this was my first time managing electricity bills on my own, I think I wasted energy for a least 6 months in which I forgot to turn the heaters/boiler off as weather was warm enough but I was passing through so much difficult personal situations so I missed to control electricity consumption. Around March, when I realised the debit was going really high, I started to keep a more tight control hence energy consumption started to lower and debit as well.
So, I think a yearly expenditure of £634.36. is not a real figure to represent my real consumption. Plus a family member that used to live with me from July 2019 to January 2020 left, so it's going to be just me living in the property for the next year.
Yorkshire Energy sent me an email with the information below.
The Green Haworth tariff seems attractive, although the caveat is that if I cancel contract they are going to charge me an exit fee which I would not like (my current tariff  doesn't have exit fees)

My questions are basically:
1) How can I calculate my real consumption (considering my mistakes during the last year handling with heaters/boiler)??
2) Would it be ideal to stick with Yorkshire or shop around to see if I find a better deal?
3) Any suggestion of a good Energy company providing this service in the north west of the UK (With no exit fees, good customer service, maybe cash back, etc)?

Thanks in advance!

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Hi .......

Your current contract with us is coming to an end. Thanks once again for choosing us as your energy supplier!

Your fixed price tariff ends on 31 July 2020.We are pleased to let you know this has been extended until 18th September 2020 to allow you to continue to enjoy the same great rates for longer if you choose. Within this period, you will have the following 3 options::

Option 1:

Simply login and switch onto our latest fixed tariff - Green Haworth. We’d love you to stick with us so we’ve removed any exit fees from your current tariff to allow you to switch between now and the 18th September 2020. This means you'll continue to be supplied with 100% green electricity at a fixed price for at least another 12 months

Option 2:

If you choose not to do anything, we'll simply move you on to our standard variable tariff once your contract ends. This tariff is a bit more expensive than our fixed tariff and prices may fluctuate in the future. Similarly, if you'd like to be moved onto our variable tariff, we don't require any further action from you.

Option 3:

Switching away is your final option. We'd be sad to see you go, as we appreciate your custom, however we'd do everything we can to make your sure your switch away from us is as smooth as possible.

You'll find further details about our tariffs, and your current tariff below.

Our Cheapest Fixed Tariff

 

Our Cheapest Fixed Tariff	Green Haworth - Fixed until 31st August 2021	Green Haworth - Fixed until 31st August 2021
	Electricity	Gas
Payment Method	Monthly Direct Debit	Monthly Direct Debit
Standing Charge Any Time	13.75 p/Day 13.27 p/kWh	8.58 p/Day 2.49 p/kWh
Tariff end date	2021-08-31	2021-08-31
Exit fees	£30	£30
Your estimated annual consumption	2209.2 kWh	9891.0 kWh
Your personal projection	£343.22	£211.09

*All prices include VAT where applicable (this may be different to how prices are shown on your bill or statement

*Standing charges are charged per meter point number.

This is currently our cheapest available fixed tariff. Please be aware that this is subject to availability and may change in the future. 

Our Green Variable Tariff

This is the default tariff you'll move on to if we don't hear from you - prices may fluctuate in the future.

 

Our Variable Tariff	Yorkshire Energy Variable	Yorkshire Energy Variable
	Electricity	Gas
Payment Method	Monthly Direct Debit	Monthly Direct Debit
Standing Charge Any Time	22.94 p/Day 15.08 p/kWh	28.78 p/Day 3.32 p/kWh
Your estimated annual consumption	2209.2 kWh	9891.0 kWh
Your personal projection	£416.90	£344.16
Exit fees	£0	£0

*This estimation is based on your accounts previous information and is subject to change. All prices include VAT where applicable (this may be different to how prices are shown on your bill or statement).

Your Personal Projection details

 

	Electricity	Gas
Your Estimated Annual Consumption	2209.2 kWh	9891.0 kWh
Your personal projection	£353.96	£374.80

 

Your current tariff information (expires 31 July 2020)

 

	Electricity	Gas
Payment Method	Monthly Direct Debit	Monthly Direct Debit
Standing Charge Any Time	10.18 p/Day 14.34 p/kWh	15.97 p/Day 3.20 p/kWh
Tariff end date	31 July 2020	31 July 2020
Exit fees	0	0

Gerry1

Stop thinking in DD amounts, they're just dollops going into a kitty which may or may not be sufficient to pay the bills.  Make sure you send meter readings every month and keep your own records.

It's a doddle to work out your annual consumption in kWh.  For electricity, it's just the difference between two actual meter readings a year apart.  Much the same for gas, except that you have to convert the volume to kWh, but this site will do it for you.  You can then work out what it's costing you at present and what it would be with a new supplier; don't forget the daily charges and VAT.  It's very important to ignore all projections and promised savings, thanks to Ofgem's stupid rules they're meaningless.

Once you know your annual consumption in kWh, compare dual fuel and separate suppliers, starting with Citizens Advice and 'Switch with Which?'.

Robin9

It's always a good idea to look regularly at what you are paying for things - whether that be utilities or insurance. Forget customer loyalty.
But you need good info otherwise you get the computer "rubbish in, rubbish out" situation.
Sit down and get your bills together and work out what your actual consumption is and you can go for there. 

[Deleted User]

Robin9 said:

It's always a good idea to look regularly at what you are paying for things - whether that be utilities or insurance. Forget customer loyalty.
But you need good info otherwise you get the computer "rubbish in, rubbish out" situation.
Sit down and get your bills together and work out what your actual consumption is and you can go for there. 

Hi Thanks for your reply, 
I have done it and..... surprise! My next year estimated consumption is way lower than what Yorkshire is estimating. 
By the way, your quote below your comment attracted my attention "Never pay on an estimated bill"
So, in other words, I should not accept the estimated consumption Yorkshire is basing my future DD charges on?
They already set up an estimated DD in my Yorkshire account (I've noticed this when I click on the link that leads me to new deal they are offering).
But when I fill a new quote form (outside of my account) as if I were not a current customer and enter calculations/figures I have done today, my DD is way lower than what they are estimating for the next year.
What should I do? Carry on with the new quote until the end or phone them to ask them to modify their estimation?

Robin9

If you are satisfied that Yorkshire is your best option then carry on. Your  credit will build up a little quicker - Yorkshire should review after 6 months anyway.  What rules does Yorkshire have about refunding your credit as the months go by ? Some insist you keep a month in hand (one had that plus 20%)

Gerry1

aaia_1234 said:

So, in other words, I should not accept the estimated consumption Yorkshire is basing my future DD charges on?

You should always base everything on your last 12 months consumption (from actual meter readings), unless you are aware of some reason why your consumption over the next 12 months is likely to be significantly different.  For example, a change in the number of occupiers, after an unusually hot or cold year, working at home, installation of loft or cavity wall insulation, new boiler etc.

Projections, forecasts and estimates should always be ignored unless there is a lack of information (e.g. moving in to a new build).  That's particularly important when comparing tariffs in the middle of a fixed rate deal: thanks to Ofgem's crazy rules, a new tariff that's supposed to save you £XXX could easily turn out to be £YYY dearer !  They assume that you'd pay six months on your cheap fixed rate and then pay six months on a sky high tariff, but of course you're shopping around so you'd never let that happen.

It's not quite so critical when setting DD amounts because they will eventually sort themselves out if they're too high or too low. Of course, you won't get 'bill shock' because you will be sending monthly readings, keeping a close eye to see whether you are building up too much credit or debit, and never comparing DD monthly amounts, won't you?

Talldave

I would inform Yorkshire of your research and ask them to adjust the DD accordingly.

GunJack

I find it's always better to start with the dd set slightly higher than your estimated annual consumption would produce, and use the first 3-4 monthly bills to see how that's stacking up with actual useage, then adjust accordingly

Petriix

Your monthly DD will always* be based on a projection of your estimated annual usage. By keeping your own records, you can ensure that the projection is as accurate as possible.

Think of the DD as a savings account where you pay in a regular amount. Then, whenever your supplier generate a bill, they withdraw the amount based on the energy you've used. Hopefully, over the course of the year, the balance should add up to zero. However, if the bills used estimates then random amounts would be withdrawn and it wouldn't reflect your actual usage.

In any case, there are two separate issues: 1) make sure that you switch to the supplier that offers the cheapest prices per kWh + standing charges for your usage in your region; and 2) make sure that they set your DD correctly based on your previous actual usage (adjusted for any changes like turning the boiler off) so that you are paying enough to cover your actual usage.

[Deleted User]

Gerry1 said:

Stop thinking in DD amounts, they're just dollops going into a kitty which may or may not be sufficient to pay the bills.  Make sure you send meter readings every month and keep your own records.

It's a doddle to work out your annual consumption in kWh.  For electricity, it's just the difference between two actual meter readings a year apart.  Much the same for gas, except that you have to convert the volume to kWh, but this site will do it for you.  You can then work out what it's costing you at present and what it would be with a new supplier; don't forget the daily charges and VAT.  It's very important to ignore all projections and promised savings, thanks to Ofgem's stupid rules they're meaningless.

Once you know your annual consumption in kWh, compare dual fuel and separate suppliers, starting with Citizens Advice and 'Switch with Which?'.

Hi Gerry!
Thanks for your reply.

There is something from it that attracted my attention.
When you say " It's very important to ignore all projections and promised savings, thanks to Ofgem's stupid rules they're meaningless."....which rules are you referring to?

TIA

Gerry1

aaia_1234 said:

When you say " It's very important to ignore all projections and promised savings, thanks to Ofgem's stupid rules they're meaningless."....which rules are you referring to?

Let's take an exaggerated example.  You're six months into a fixed tariff that costs £1,000 per year.  When it ends, you'll be rolled over to a standard tariff costing £10,000 per year.  If you do nothing, in the next 12 months you'll pay £500 + £5,000 = £5,500.  However, if you now switch to a competitor who charges £2,000 per year, in the next 12 months you'll pay £2,000 hence your so-called "saving" will be £5,500 - £2,000 = £3,500.

Of course, that fool's gold because you'd never let yourself be rolled on to such an expensive tariff:  that's why you're getting comparisons now.  Instead of making a fantastic saving, you'll end up on a tariff that costs twice as much as your existing one.  Welcome to the Ofgem quicksand !

Sadly, most comparison sites quote these fake savings, even Citizens Advice and 'Switch with Which?'.  To its credit, MSE's CEC also gives the sensible results and gives them preference, but then blots its copy book by claiming to show all suppliers but omitting Neon Reef, and not alerting you if you are a Neon Reef customer and a cheaper tariff comes along.

Therefore, you have to be an anorak to get the best deal.  Search lots of comparison sites starting with the three above (to find deals only available via a few sites), then repeat the exercise with separate suppliers as well as dual fuel.  Finally, if you have E7 but no storage heaters, do it a third and fourth time to see whether single-rate-with-an-E7-meter is cheaper.

Phew...