Existing customer only fixed deals

dhokes

Just a thought, how long do you typically have to be on a supplier's variable rate before you can sign up to their fixed deals? I'm thinking about switching to a supplier's (that's offering a fixed deal for their customers) variable rate and then switching to their fixed rate.

macman

You can be on a fix from day one, if one is offered at sign up.
There's no ETC on SVT, so you can switch over to a fix as soon as you sign up, if it's available.
The problem is that very few suppliers are taking on new customers at present.

stewie_griffin

Have you checked if the supplier you’re interested in is taking on new customers?

dhokes

stewie_griffin said:

Have you checked if the supplier you’re interested in is taking on new customers?

Ah, nope.

pochase

Two problems with this scenario,

1. Which supplier is prepared to take you on? We know that EDF and Octopus might let new customers join them when you call them and get lucky with the agent you talk to, repeated calls may be necessary and it's a long time since somebody reported they got lucky with EDF.

2. The fixed deals offered to existing customers are getting worse all the time, and need very sharp calculation to find if there is any win,

macman

The last thing that any supplier wants at present is a new customer on SVT. They're making 2% at most, and that is probably less than the cost of the transfer process.

Mstty

Really only Utility Warehouse left

https://www.moneysavingexpert.com/utilities/does-utility-warehouse-stack-up-/

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

pochase

UW might work for very high users. The cost for the additional £12 sim and a 16£  insurance will make up a small increase to the unit rates for them. The 28£ is the cheapest way to unlock their fixed tariff.

We are talking here 33600p that need to be added to the cost per year. so for somebody who is on the Ofgem average it is 33600/14900 (12000 and 2900) that is 2.25p that needs to be added to the unit rates offered by UW.

It works out cheaper if you really need the services offered, but first they are more expensive than free market offers, and secondly how likely is it that you can cancel you existing contract without penalty and start with them tomorrow?

northernstar007

people thats on cheap fixed prices are the suppliers making a loss?

Mstty

northernstar007 said:

people thats on cheap fixed prices are the suppliers making a loss?

Yes if their fix is below the current price cap, as there is approx 2% profit in the price cap.

pochase

No, the supplier will have hedged the cost for the fix, so they will not make a loss here.

This is the reason for the high exit fees, if the prices would come down the suppliers would still have to pay the high rates they hedged for.