PAYG vs Fixed rate...Help!

bhaslihays

Hi everyone,

I've been on PAYG gas with EDF since July 2022, and when news started coming out about the price hikes I decided to switch to a fixed tariff with Utility Warehouse. 

UW have been dragging their feet with getting me switched, which has given me time to see how much I get charged with PAYG. From 12th July to 3rd October I have been charged £58.88. This works out as about 70p a day.

If I switch to UW, they will charge me a fixed rate tariff of £80.85 a month, which is obviously way more - nearly £2.70 a day.

Granted, I have been living on my own and now have a flatmate, but I can't see that tripling the PAYG price.

My question is, am I missing something or would it be better for me to stick with PAYG? Are PAYG prices about to skyrocket? I would really appreciate someone more knowledgeable giving me some answers, because I feel like I'm about to get seriously stung but don't know by who.

Thanks in advance

EssexHebridean

You need to look at the unit rates and standing charge costs, NOT the amount they say that will cost you. Remember what you pay depends on the amount you use, and the cost of the units used - there is no "fixed amount" that your energy will cost you - if you use more, you pay more. Use less, you'll pay less. 

Have you done any research about UW? it's highly unlikely that they will save you much, if any money on your energy bills unless you switch other services to them as well - and then there is a very good chance you'll be overpaying for those other services which will negate the energy savings. As a general rule the only people who are particularly enthusiastic about UW are those with a financial interest in being enthusiastic. 

bhaslihays

EssexHebridean Thanks so much for your reply!

I've had a look and the rates and costs are as follows:

EDF
Standing charge - 35.50p per day
kWh rate - 7.134p

UW
Standing charge - 17.06p per day
kWh rate - 10.955p

Does this mean I would be better of with UW as their Standing charge is lower?

Thanks again                                

EssexHebridean

I think you'll find the EDF rate you're looking at there is an old one from before the 01/10 price rises? Unless they are still maintaining far lower prices for PAYG customers of course - someone else may know. Also check that the UW standing charge isn't just for customers switching multiple services to them.

To be honest my view is that you're a bit between a rock and a hard place - EDF are a dreadful company to deal with, but if anything my experience is that UW are worse. EDF are just inept - UW are inept and also have a complete lack of transparency. 

Have you considered a switch to someone completely different? All suppliers are likely to be much of a muchness on standard pricing anyway so it may be worth you looking at other options. 

PennineAcute

Since July 2022, you will have used little gas.  Now the temperatures are dropping, you will be using more gas.

So your 70p a day with EDF is your daiy cost over the summer.  UW's quote will be the daily cost over 12 months.  The question is, is UW's quote accurate, as accurate can be?