Is Neon Reef worth the risk?

Bionik

I am thinking of jumping back to them after being hit by PFP and now currently BG. 

They are offering a 1yr or 2yr fixed rate at really great rates - much cheaper than BG. But I am just worried they are going to be part of the drop soon. Anyone had the same thought?

EssexHebridean

is the fix as cheap as a standard variable rate from elsewhere? That seems fairly unlikely at this point - certainly a "fix" quote from them on our use is more than we're currently paying. Regardless though, the smart money does seem to be on them not surviving for much longer, so you could find yourself back with a SoLR sooner rather than later anyway, having wasted time on switching. 

Bionik

EssexHebridean said:

is the fix as cheap as a standard variable rate from elsewhere? That seems fairly unlikely at this point - certainly a "fix" quote from them on our use is more than we're currently paying. Regardless though, the smart money does seem to be on them not surviving for much longer, so you could find yourself back with a SoLR sooner rather than later anyway, having wasted time on switching. 

My BG tariff is 24p kwh day rate and the standing charge the same.

Neon is 18p kwh day rate and 17p standing charge. 

So this is the problem I face. I have economy 7 but my flat is rubbish with night usage - 80-90% day usage. 

It's so frustrating - I wish they would just heed warning in advance saying it looks like they will go bust!!

MWT

The current 12 month fix from Neon is below the capped SVR elsewhere, the 24 month fix is about the same as the SVR elsewhere.

EssexHebridean

Why so poor on night usage? Presumably that will change running into winter as heaters etc go on - have you checked everything is set up correctly, water heater etc, to run at the correct times, and do you use appliances etc overnight where possible? If you can't do any of the above, and certainly if you don't rely on heating that charges overnight, then E7 may well not be best for you anyway as it does tend to be more expensive on day-rates in the first place due to the massive saving on stuff that's done overnight. We extract close to 70% of our use overnight.

Spies

I personally would stay away from neon reef considering it shares the same directors from Utility Point. 

worrywart_3

I would avoid however if they go bust you will just go back on a capped svr so there isn’t much to lose bar the headache of another solr which presumably you haven’t got a large credit with bg so if your happy to be solr again it might be worth the risk on their 12 mth tarrif, if you get a few mths of winter usage for less but it could be you don’t even make it or only get a few weeks worth and depends if your happy to line the pockets of their directors 

Bionik

EssexHebridean said:

Why so poor on night usage? Presumably that will change running into winter as heaters etc go on - have you checked everything is set up correctly, water heater etc, to run at the correct times, and do you use appliances etc overnight where possible? If you can't do any of the above, and certainly if you don't rely on heating that charges overnight, then E7 may well not be best for you anyway as it does tend to be more expensive on day-rates in the first place due to the massive saving on stuff that's done overnight. We extract close to 70% of our use overnight.

I know it sounds silly, but the eco heaters we had originally were awful so I replaced them with panel heaters which are not timed. Also my heater has been out of sync for years but it does the job. I was actually on a standard tariff for a long time as it seemed pointless having a night rate - so I want to do that again. But BG said that it will be the same cost - 24p which is madness. I think I need to change to somewhere at least on a single rate. 

bagand96

Your only real risk is that you end up back in an SoLR process and any credit balance you have will be tied up in that (that will be paid for by all of us via the industry levy)

How they are taking on new customers and selling at rates cheaper than they can buy it on the wholesale market is anyone's guess. Maybe they massively overhedged and have loads of cheap electricity to sell, or they could just have some very brave investors with very deep pockets. 

Petriix

I'm not seeing a risk. Just cheap prices until they go bust. The price with whatever SoLR will be the price cap anyway. 

Spies

Petriix said:

I'm not seeing a risk. Just cheap prices until they go bust. The price with whatever SoLR will be the price cap anyway. 

The risk is being in limbo for months depending on the SoLR.