Green Energy UK - what's the catch?

Mstty

On the other side of the coin

Founded in 2001 so not new to the market. Financials from what I can see seem solid

I am also surprised the Sparkling tariff rates have not changed but then again maybe very few have actually found this tariff (it's not advertised or showing up on any energy price comparison sites) and to be honest even those looking here seem hesitant so their new customer numbers might still be low.



 

spot1034

MWT said:

pochase said:

I am just a bit uneasy why a company that was always more expensive than other suppliers due to being real green has now for weeks the cheapest fixed rate and has not withdrawn it after increased cap predictions. Does not make much business sense for me.

Same here, and why I outlined the risk in my earlier post.

Unless they have somehow managed to over commit on their hedging for the winter, this just doesn't make sense...

They may have drawn up contracts with specific suppliers who meet their stringent requirements, and whilst these might up to now have been more expensive than the supplies secured by the mainstream providers, prices have risen so much that their sources can now undercut the main market and they have managed either by luck or judgement to strike a good deal. 

That would be my suggestion - I've no idea whether it's anywhere near correct!

pochase

So if they only have 500 new customers they will lose money on it is not a reason to withdraw, they can wait until it is at least 1000?

Almost everybody with a fixed rate withdrew it after the last prediction increase, many suppliers are not even offering a new increase fixed tariff, it is just Green Energy that is still offering a fixed tariff on the level mid June level other suppliers had for existing customers.

Add to this that Martin's team is still not mentioning the tariff, neither positive or negative. They just ignore it, even after several people have asked why.

@Mwt idea of them having overcommitted might be an explanation, but it would be just fighting one loss with another loss.

 

Mstty

It's called headroom for a particular offering.

A bit like EDF and EON Next fixed rates they have offered since March this year they admit they are limited to a set amount of customers.

Not unreasonable assumption it's how the big 6 do it and makes perfect business sense to only withdraw a product when fully subscribed.

EssexHebridean

I'm guessing it gets ignored because it's not a provider that's covered by the cap. I have a feeling Martin DID mention the tariff somewhere last week, but I think for the purposes of Cheap Energy Club and the weekly email they concentrate on providers who also provide at least some form of SVR at the cap as well. 

bristolleedsfan

Chrysalis said:

Mstty said:

Minimal chance of being locked in from September 2023....

Yet to reach 500,000 customers so relatively small so they could potentially go bust but then you have protection.for that.

I think you have been on other threads where the price cap has been discussed for Oct 44p elec 14p gas (table below thanks @QrizB) best guesstimates and also Jan 2023 below as well.

That suggests a SC of roughly 27.4p day for gas and 46.6p for electric.

Electricity Standing Charges are expected to be reduced from 1 October

Ofgem announced a very short consultation to find out views from energy suppliers on moving certain costs from SC to Unit rate.

https://twitter.com/MartinSLewis/status/1549044852033486853

"Most of the energy firms have agreed with me to lobby ofgem to try and get the price cap standing charge reduced. It is a moral hazard"

bristolleedsfan

wittynamegoeshere said:

There is a risk that the October price rise might not actually happen.  We'll have a new PM, they might decide to just ignore the formula this time around.

A legal challenge is reported to be planned, article for some reason has been removed from Telegraph

https://www.msn.com/en-gb/money/other/energy-price-cap-rise-will-e2-80-98breach-human-rights-e2-80-99/ar-AAZyZPb?fromMaestro=true

spot1034

wittynamegoeshere said:

There is a risk that the October price rise might not actually happen.  We'll have a new PM, they might decide to just ignore the formula this time around.

If this happens then those who switch to this deal now will be paying a premium from now until October, then saving little, nothing or even making a loss beyond that.  The chances of switching to a capped supplier could be zero - either now, during the fix or at the end.

Nothing is yet set in stone and anything could happen, as there are limitless unknowns.

But, having said all that, I've signed up to GEUK as it seems like a reasonable gamble.  But it definitely IS a gamble.

I've seen this suggested several times - mostly by you I think! - and I just don't see it happening. There are too many complications, and don't forget the new cap will already have been announced when a new PM is appointed, and there would be less than four weeks to formulate a new policy and iron out all the difficulties that would be thrown up, and there would be many. 

Chrysalis

What_time_is_it said:

Chrysalis said:

Mstty said:

Minimal chance of being locked in from September 2023....

Yet to reach 500,000 customers so relatively small so they could potentially go bust but then you have protection.for that.

I think you have been on other threads where the price cap has been discussed for Oct 44p elec 14p gas (table below thanks @QrizB) best guesstimates and also Jan 2023 below as well.

Just noticed this, do you have the link to the thread where this was posted so I can keep track?

That suggests a SC of roughly 27.4p day for gas and 46.6p for electric.

At those SVR unit rates assuming they include VAT, I think this fixed deal is a slight loser for gas.

But if I'm saving about 2.5-3p per unit on gas, that will save me about £250-£300?
How can the standing charges be more than £250 extra on the fixed deal? They'd have to be over £1 a day to make it more expensive wouldn't they?

Compared to the fixed deal, the SC rates no idea as they wasnt disclosed in the top post.  The ones I quoted were from what Mstty posted regarding the predicted new SVR rates.

My calculation was based on that from 20 July to 1 October you will be overpaying for gas by 4.5p KwH.  So then you need to claw that money back after the SVR increase, however I will say I didnt take into account that for people who use central heating in winter, they will be using much more gas after October, than between now and October.  My calculations were based on steady usage.  This definitely changes things a bit so taking that into account assuming you do use a lot of gas in winter, the deal is probably worth considering.  Of course if you value peace of mind on price stability for a year it holds value for that reason as well, as SVR is somewhat a gamble.

jefferson89

wittynamegoeshere said:

I doubt that Martin and many others would be happy if the govt does absolutely nothing.

Previously they've lobbed cash around by the £100s per household, so those on fixes have done very well - they haven't had a rise in their bills and have got free money.  But there's no reason why it has to be done this way, they could choose to subsidise the per unit charge if they wanted to.  Obviously this would be unfair on many, also it would subsidise rich people who use lots of energy disproportionately.  But someone always wins whatever the scheme, and things being unfair or illogical hasn't been an obstacle in the past - e.g. the furlough scheme paid well-off people massive amounts of money.

I'm not predicting anything, merely pointing out that absolutely nothing is set in stone.  By taking a fix now we are paying a premium to protect ourselves.  But we don't really know what we're protecting ourselves against.

I reiterate that I've already signed up to GEUK. Obviously I hope it turns out profitable, otherwise I wouldn't be signing up for it.  But very much with my eyes open and I won't be blaming anyone else if it ends up getting complicated or costing me money. 

I think I am with yourself, i think i am going to take the game and join GEUK.  Can someone tell me, if you fix on a certain tariff, is everything fixed? i.e The unite price and the Standard charge for the length of the contract?

With GEUK i am being offered: 
Electricity: 48.12p SC and 38.20p per kwh @ 1976 units = £930.46 yearly. / Gas: 31.31p SC and 11.75p per kwh @ 8000 units annual = £1054.25.  Making it £165.40 per month.

I decided to just check my British Gas account and today I am being offered: Fixed Oct 23v1:
Electricity: 47.247p SC and 51.591p per kwh @ 1976 units = £1,191.89 yearly. / Gas: 29.292p SC and 15.593p per kwh @ 8000 units annual = £1,353.91.  Making it £212.15per month.

So ensuring my maths is right its a no brainer to try GEUK right?