A peak into future energy prices

merchcon55

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Neil_Jones

Two words:  Energy cap.

booshya

merchcon55 said:

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Comments?

The switching window opens 49 days before the expiry of a fixed term tariff, not 2.5 months before.

So Energy may not even still be in business by the time we get to March.

[Deleted User]

booshya said:

merchcon55 said:

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Comments?

The switching window opens 49 days before the expiry of a fixed term tariff, not 2.5 months before.

So Energy may not even still be in business by the time we get to March.

Under Standard Licence Conditions, the supplier and consumer can agree a mutual variation of contract which has to be implemented within 5 days of any agreement to vary the contract. Legally, this would not be a switch.

merchcon55

booshya said:

merchcon55 said:

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Comments?

The switching window opens 49 days before the expiry of a fixed term tariff, not 2.5 months before.

So Energy may not even still be in business by the time we get to March.

Not a switch

So Energy 75 percent owned by ESB, which is owned by The Irish State - unless you think Ireland will go bust by March

QrizB

merchcon55 said:
So Energy 75 percent owned by ESB, which is owned by The Irish State - unless you think Ireland will go bust by March

Personally I've no problems with the Irish State underwriting losses made by So Energy in supplying UK consumers; the Irish State, of course, might have other ideas.

booshya

merchcon55 said:

booshya said:

merchcon55 said:

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Comments?

The switching window opens 49 days before the expiry of a fixed term tariff, not 2.5 months before.

So Energy may not even still be in business by the time we get to March.

So Energy 75 percent owned by ESB, which is owned by The Irish State - unless you think Ireland will go bust by March

Hub Energy were 100% owned by international oil giant Gulf.

Gulf have not gone bust; Hub Energy have.

booshya

Dolor said:

booshya said:

merchcon55 said:

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Comments?

The switching window opens 49 days before the expiry of a fixed term tariff, not 2.5 months before.

So Energy may not even still be in business by the time we get to March.

Under Standard Licence Conditions, the supplier and consumer can agree a mutual variation of contract which has to be implemented within 5 days of any agreement to vary the contract.

So a price change can't become effective in 2.5 months time if it has to be implemented within 5 days.

But suppliers do often allow a change of tariff at the scheduled end of the existing one, once the switching window opens.

Gerry1

booshya said:

merchcon55 said:

booshya said:

merchcon55 said:

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Comments?

The switching window opens 49 days before the expiry of a fixed term tariff, not 2.5 months before.

So Energy may not even still be in business by the time we get to March.

So Energy 75 percent owned by ESB, which is owned by The Irish State - unless you think Ireland will go bust by March

Hub Energy were 100% owned by international oil giant Gulf.

Gulf have not gone bust; Hub Energy have.

IIRC Hub/Gulf were just using the familiar badge of a former oil company to make them seem bigger and longer established than they really were.  A bit like Bush radios and electrical products, just a nostalgia badge stuck on to indifferent Chinese products and a long way from the original British company based in Shepherds Bush who made high quality products.  Much the same for MG, not much of Morris Garages in it !

A better comparison would be Pure Planet.  They were backed by BP, but that didn't save them.

bristolleedsfan

merchcon55 said:

My brother in law is with SO Energy and has a fix rate until the end of February. He was contacted by SO to lock in a 2 year fix today - which would not start until after his current fix rate ends - so starting 1 March 2022. SO Geranium is the rate.

The rates quoted: 

9.56p/ KWh Gas

35.77p/KWh Electricity

Standing charges are only around £25 per fuel - £40 per fuel penalty to end contract early.

He currently pays £166/ month - the new rate will make his monthly cost £410/ month

He was asking my advice whether to take the deal - he did - but has a 14 day cooling off period.

I'm thinking he is right to take it - worst case scenario, energy prices plummet, and it costs him £80 to pull out of the deal.

If energy prices keep going up the way they have been this month - his rate will appear a bargain !

Comments welcomed

Unless he cancels will be paying more from 1 March than is necessary + £40 per fuel penalty if decides to switch to cheaper deal later.

Where does belief come from that Standing charges are only around £25 per fuel ????  I make example below  £193.15 for both fuels

https://forums.moneysavingexpert.com/discussion/comment/78846256/#Comment_78846256

Tariff	So Geranium Two Year - Electricity - 1 Rate
Unit Rates	35.46 p/kWh
Standing Charge	26.81 p/day
Fixed Term	24 months
Early Termination Charge	£40

Tariff	So Geranium Two Year - Gas
Unit Rates	9.51 p/kWh
Standing Charge	26.11 p/day
Fixed Term	24 months
Early Termination Charge

£40

merchcon55

Hey thanks for pointing out the above - I only had a text from him where he put in £ where he should have put PENCE - I did suggest to him he double check as I thought £50 per year S/C was very cheap