Good option Scottish Power?

Marsdenfamily

Dear all.
My Scottish Power fixed rate energy deal ends 28th Feb.I pay £100 per month and have started overpaying to £130 given the massive increases ahead. If i do nothing it goes up to £136 variable rate from 1st March.If that goes up 54% in April thats £209/month.A further 20 to 30% increase in October takes it to about £261. The best 2 year fixed with So energy now is £230.However Scottish Power have offered their Green tariff at £196 per month fixed until May 24.You have to take out boiler cover at £9.50 per month but this is service / repairs so sounds ok.Tempted or do i wait and fix nearer April?
Thoughts and advice appreciated.

slipthru

What are the tariff rates you have been offered?

Gerry1

Welcome to the forum.

Sadly you're doing everything wrong.  Deliberately overpaying seldom makes much sense: if you switch or your supplier goes bust it can take quite a while for you to get your money back, possibly several months.  Your new supplier may also take the first DD even before your supply starts so you could be hit by several DDs before your old credit is returned.

Also, the back billing rule doesn't apply if you had sufficient credit to pay an unexpected catch up bill because the energy company had messed up.  Far better to set up an instant access savings account or Premium Bonds that you can raid as necessary, then it's always under your control and you'll get a smidgeon of interest (or possibly a win) as well.

Above all, you should be thinking in terms of the annual cost based on your annual kWh consumption derived from actual meter readings, not estimates.  DD amounts are meaningless because they are only tops ups of a kitty that may or may not prove to be  sufficient to pay the bills.

Nobody know what the rates will be in the summer let alone in the autumn or next winter, so whatever you do now will be a gamble.

EssexHebridean

Regardless of what decision you reach about tariffs, I'd agree with Gerry about adjusting your DD back down for the time being and stashing the extra you're currently paying in a savings account under your own control. We've been doing this to the tune of £50 a month extra for a few months now - currently we've using below our estimated amount of electricity anyway so the account is actually running in credit, unusual for this time of year but there you go - and I suspect will be glad of the extra buffer come next winter. we plan to feed out council tax rebate straight into our savings account, too, so it's there when needed.

Marsdenfamily

Great points and advice.Just checking the kw per hour and therm rates on the Scottish Power Green tariff.At £196 plus the ,£9.50 boiler cover it looks a good option.Todays lowest rate for me on MSE is £230 with So Energy.I guess the £196 fixed deal will be a lot higher nearer April.Any thoughts on goi g for it on this fixed deal or waiting until nearer April amd going on variable for about 6 weeks from 1st March.

Gerry1

You're still doing it all wrong.  And what are the exit fees?

jimjames

It's not a £196 fixed deal, it's an estimated DD of £196 with fixed unit prices. The amount you pay will be based on the amount you used multiplied by the unit rates.

Marsdenfamily

Understand thanks.I realise its the kwh rate etc but based on our annual use if the cheapest on martin lewis site is So energy at £230 and this is £196 plus£9.50 boiler co er wirh no exit fees it sounds a good deal.Gerry you clearly know your stuff so willtell you the kwh a d see what your recommendation would be.Appreciate rhe support.

EssexHebridean

Ok. 

You’re not getting it. 

What is the UNIT rate you are being quoted?

What is the standing charge you are being quoted?
Roughly what area of the country are you based in?

What is your annual usage?

Without that info it’s literally impossible for anyone to advise whether the deal sounds reasonable, or not. 

Context: I currently pay £70 a month and am expecting to pay around another £50 when the cap changes - so on the basis you’re presenting, that would mean that your £196 was pretty expensive….no?  Except it doesn’t, because you and I heat our homes differently, have different appliances, and use different amounts of power. 🙃

Direct debit amounts tell nobody apart from you anything. 

theoretica

It can take some digging to find the £0.xx per kWh that lies behind the quoted DD £XXX a month, but it is worth doing this.  I have at least once, on looking further, found that despite typing in my annual use the DD quoted was for some different estimated usage because the computer thought it knew better...

Marsdenfamily

Thanks for the feedback 
Our tariff with Scottish power ends 28th Feb.
We pay £100 per month.It looks like it will double or more going forward.I have this option on a green tariff fixed until June23 with Scottish power.It would take our payment up to £148 so 48% more fixed until june 2023.

The tariff details are as follows:

Electricity

Tariff

Exclusive Fixed June 2023 B1

Payment method

Monthly direct debit

Standing charge

21.37p

Primary unit rate

27.16p

Exit fee

£30.00

Tariff end date

30/06/2023

Gas

Tariff

Exclusive Fixed June 2023 B1

Payment method

Monthly direct debit

Standing charge

21.37p

Primary unit rate

7.24p

Exit fee

£30.00

Tariff end date

30/06/2023

Its also UK supply from wond farms
£60 exit fees

Tempted by this.To go from £100 per month not udeal jumping 48% but Martin Lewis said it might be worth co sidering if around 44% more.

2 year fixed will give me a 100% rise at £200 plus.

I think this fix until June 2023 looks a great option.Feedback appreciated.We are moving house in April.Assume I can transfer this deal to the new house?

Feedback appreciated.