So Energy fixed deal - Any good?

Andrea15

I must confess, I don't really understand the price cap... what is the unit price? I can't quite find out.

Anyway, as my fixed is ending in March I got a phone call yesterday from my supplier. They are offering a two yr fix (£20 penalty per utility if you leave) and just about twice as much as I am paying now. It is ludicrous to say it, but it sounds like a not too bad a deal to me.

The unit prices are as follows:
GAS

Unit Rates	7.64 p/kWh
Standing Charge	26.11 p/day

ELECTRICITY

Unit Rates	30.6 p/kWh
Standing Charge	24.86 p/day

(Eq. to approx. £153 a month - and I am feeling queasy as I write this...)

My old tariff was:
GAS
Unit rate 2.75 p/kWh
Standing charge 22.05 p/day
ELECTRICITY
Unit rate 15.41 p/kWh
Standing charge 22.05 p/day
(Eq. to £79 a month which is a slight overspend for my usage, in fact I am about £160 in credit now)
(Note: everything is inclusive of VAT)

I know that with the price cap is much cheaper now, but that is going to change in April and then again in October.

Any thoughts? I am tempted to go along with it.

[Deleted User]

Hi,

have you done a comparison site check to see how prices compare?

QrizB

Andrea15 said:

Any thoughts? I am tempted to go along with it.

April's cap is expected to be close to that fix. For a £20 exit fee it might be worth it; if prices drop significantly you can pay the £40 and switch.

If you sign up today will it run from the end of your current fix (good) or will they change your tariff immediately (not good)?

bristolleedsfan

Andrea15 said:

.

Anyway, as my fixed is ending in March I got a phone call yesterday from my supplier. They are offering a two yr fix (£20 penalty per utility if you leave) and just about twice as much as I am paying now.

https://help.so.energy/support/solutions/articles/7000046455-our-early-exit-fees

Our 12 month, fixed tariff agreements have early exit fees of £20 per fuel (if your 12 month tariff began prior to 16 August 2021, your early exit fees will be £5 per fuel. If your 12 month tariff began after 16 August 2021 and up to 2 November 2021, your early exit fees will be £10 per fuel). That’s £40 if you end a dual fuel agreement early or £20 for ending a single fuel agreement early. 

Our 24 month, fixed term tariff agreements have early exit fees of £40 per fuel. That’s £80 if you end a dual fuel agreement early or £40 for ending a single fuel agreement early (if your 24 month tariff began on any date up to and including 2 November 2021, your early exit fees will be £30 per fuel).

Andrea15

I am answering my own question. I went on CompareTheMarket and the variable rate I am offered is just shy of £100/month. That equates to:

Unit rate

20.391p per kWh Electricity

4.010p per kWh Gas

Standing charge

15.52p per day (£56.65 per year) Electricity

18.22p per day (£66.51 per year) Gas

Martin said in a tweet:

Current price cap: £1,277
Strongly predicted 1 Apr cap: c.£1,925
Crystal ball predicted 1 Oct cap c. £2,240

(EDIT)
(new_cap/old_cap)*my_current_capped_cost
1925/1277*100=151pcm
2240/1277*100=175pcm

In this case it would make indeed sense to fix, unless the Government steps in.
(/EDIT)

Hope I have managed to explain it all. I have to say, I have learned a lot by simply typing all this

PS

All the fixes offered are dearer than this. They all start at £166 pcm.

Andrea15

bristolleedsfan said:

Andrea15 said:

.

Anyway, as my fixed is ending in March I got a phone call yesterday from my supplier. They are offering a two yr fix (£20 penalty per utility if you leave) and just about twice as much as I am paying now.

https://help.so.energy/support/solutions/articles/7000046455-our-early-exit-fees

Our 24 month, fixed term tariff agreements have early exit fees of £40 per fuel. That’s £80 if you end a dual fuel agreement early or £40 for ending a single fuel agreement early (if your 24 month tariff began on any date up to and including 2 November 2021, your early exit fees will be £30 per fuel).

I stand corrected. They did say that in the email they sent me.

Andrea15

QrizB said:

Andrea15 said:

Any thoughts? I am tempted to go along with it.

April's cap is expected to be close to that fix. For a £20 exit fee it might be worth it; if prices drop significantly you can pay the £40 and switch.

If you sign up today will it run from the end of your current fix (good) or will they change your tariff immediately (not good)?

From the email it looks as if it is starting from March as it states:

Tariff Renewal Date

27th Mar 22

Anyway, see here for further calculations:
https://forums.moneysavingexpert.com/discussion/comment/78911764/#Comment_78911764

Andrea15

[Deleted User] said:

Hi,

have you done a comparison site check to see how prices compare?

See here:
https://forums.moneysavingexpert.com/discussion/comment/78911764/#Comment_78911764

QrizB

Andrea15 said:

I am answering my own question. I went on CompareTheMarket and the variable rate I am offered is just shy of £100/month. That equates to:

Unit rate

20.391p per kWh Electricity

4.010p per kWh Gas

Standing charge

15.52p per day (£56.65 per year) Electricity

18.22p per day (£66.51 per year) Gas

Martin said in a tweet:

Current price cap: £1,277
Strongly predicted 1 Apr cap: c.£1,925
Crystal ball predicted 1 Oct cap c. £2,240

so it would NOT make sense to fix as, if my maths is right, the first increase would bring me to about £119, while the second one to 138. I could fix for 12 months (which is ever so slightly dearer) or for 24, which is what I quoted above. To be quids in, in the second year my monthly charges would have to go up to about £186 on average. What are the chances of that?

Hope I have managed to explain it all. I have to say, I have learned a lot by simply typing all this

PS

All the fixes offered are dearer than this. They all start at £166 pcm.

I think you might have missed something there.

Martin's "current price cap" is not the £79/month you're paying now, it's the £100/month 20p/4p rate you've been quoted on CompareTheMarket.

His predicted April increase will take that to ~£150/month.

His crystall ball October increase will take it to ~£175/month.

So the £153/month you've been offered is only £3/month above the April cap, and £22/month less than the October one.

Andrea15

QrizB said:

I think you might have missed something there.

Martin's "current price cap" is not the £79/month you're paying now, it's the £100/month 20p/4p rate you've been quoted on CompareTheMarket.

His predicted April increase will take that to ~£150/month.

His crystall ball October increase will take it to ~£175/month.

So the £153/month you've been offered is only £3/month above the April cap, and £22/month less than the October one.

Ah, you are right... I need to compare from the current cap price, not my current price.

(new_cap/old_cap)*my_current_capped_cost
1925/1277*100=151pcm
2240/1277*100=175pcm

In this case it would make indeed sense to fix, unless the Government steps in.

(I am going to edit my previous post)

Andrea15

QrizB said:

Andrea15 said:

Any thoughts? I am tempted to go along with it.

April's cap is expected to be close to that fix. For a £20 exit fee it might be worth it; if prices drop significantly you can pay the £40 and switch.

If you sign up today will it run from the end of your current fix (good) or will they change your tariff immediately (not good)?

Just to confirm, I have emailed them and said the new price will start at the end of March. I have to say, I thought it was pretty decent of them...