Should I switch?

Tigger448

I’m with EDF paying £319 a month DD. I’ve looked at Octopus who are quoting a DD of £203 per month. 

Octopus are slightly more expensive per unit for gas/electricity but are cheaper on the daily standing charge than EDF. 

I’m not on a fixed tariff as I had to move from utility point when the ceased trading. Looking for advice please 

Scot_39

Are you sure both rates are the new April rates ?

The Ofgem April cap announcement said SC up ave of 7p day electric but very regional and 1p gas for instance.


EDF have just updated their rate cards for April,  e.g.

https://www.edfenergy.com/sites/default/files/dm1903_pl1_rate_card_builed_aw4_v1.pdf

Reed_Richards

You should not pay any attention to the DD amounts as that will "come out in the wash"; if you use it you will have to pay for it sooner or later, if you don't use it you can claim a refund on your credit balance.  

[Deleted User]

Tigger448 said:

I’m with EDF paying £319 a month DD. I’ve looked at Octopus who are quoting a DD of £203 per month. 

Octopus are slightly more expensive per unit for gas/electricity but are cheaper on the daily standing charge than EDF. 

I’m not on a fixed tariff as I had to move from utility point when the ceased trading. Looking for advice please 

You need to compare tariffs based on your annual usage not DDs. Whether the supplier offers you a DD payment of a £1 per month or a £1000 a month, you will end up paying for the actual energy that you use at the agreed tariff price. In sum, look at the annual cost.

Tigger448

[Deleted User] said:

Tigger448 said:

I’m with EDF paying £319 a month DD. I’ve looked at Octopus who are quoting a DD of £203 per month. 

Octopus are slightly more expensive per unit for gas/electricity but are cheaper on the daily standing charge than EDF. 

I’m not on a fixed tariff as I had to move from utility point when the ceased trading. Looking for advice please 

You need to compare tariffs based on your annual usage not DDs. Whether the supplier offers you a DD payment of a £1 per month or a £1000 a month, you will end up paying for the actual energy that you use at the agreed tariff price. In sum, look at the annual cost.

Hi 

I have compared tariffs and overall Octopus Energy are cheaper, not by much. I’m debating wether I should wait or not? 

Tigger448

Reed_Richards said:

You should not pay any attention to the DD amounts as that will "come out in the wash"; if you use it you will have to pay for it sooner or later, if you don't use it you can claim a refund on your credit balance.  

Yes I appreciate that whatever I use I will pay for. It just gets confusing and my debate will be wait or not? EDF automatically give refunds when I credit. I’m a single parent trying to save where I can and the DD with Octopus is automatically £100 cheaper 

Tigger448

:-).        

Spoonie_Turtle

Tigger448 said:

[Deleted User] said:

Tigger448 said:

I’m with EDF paying £319 a month DD. I’ve looked at Octopus who are quoting a DD of £203 per month. 

Octopus are slightly more expensive per unit for gas/electricity but are cheaper on the daily standing charge than EDF. 

I’m not on a fixed tariff as I had to move from utility point when the ceased trading. Looking for advice please 

You need to compare tariffs based on your annual usage not DDs. Whether the supplier offers you a DD payment of a £1 per month or a £1000 a month, you will end up paying for the actual energy that you use at the agreed tariff price. In sum, look at the annual cost.

Hi 

I have compared tariffs and overall Octopus Energy are cheaper, not by much. I’m debating wether I should wait or not? 

I think you should wait to find out the tariff rates from April, then compare the cost of both when using your annual usage.  Chances are Octopus will still be cheaper on the standing charge as that's where they try and support their customers a little, but check the unit rates as well and how it works our with your annual usage.

[If you still decide to switch, make sure to find a referral code from any existing Octopus customer for £50 credit, we all have one.  Full disclosure, it gives the existing customer £50 credit too.]

Scot_39

Tigger448 said:

Reed_Richards said:

You should not pay any attention to the DD amounts as that will "come out in the wash"; if you use it you will have to pay for it sooner or later, if you don't use it you can claim a refund on your credit balance.  

Yes I appreciate that whatever I use I will pay for. It just gets confusing and my debate will be wait or not? EDF automatically give refunds when I credit. I’m a single parent trying to save where I can and the DD with Octopus is automatically £100 cheaper 

I think the point others are making, is the EDF unrealistic and the Octopus realistic.

That there is no point in paying £100 less now if that's not going to cover your usage over the year and so land you with a bigger bill in 6m or 12m time, that you might then struggle with.

So if for instance you gave Octopus your last 12m usage figures and they are £100 cheaper - that's clearer reason to switch.

If it was just some typical usage estimate however - you might want to look at doing your own calcs - using April rates if you can - as a sanity check.  But March will be close unless on E7 or other multirate electric.

Volatility is now clearly a major issue.

A little credit might not be a bad thing, but £100 a month £1200 a year - 4x edf and 6x octupus quote - sounds far too much.

You could - if suits - even split the risk - so switch - but put some of the £110 pm aside - say £50 - assuming that wouldn't interfere with any benefits etc  and have the discipline not to spend - as a safety margin for future - or a nice treat or seasonal essentials for family later in year if lower prices as forecast stick.

There are year to year weather differences - 22/23 been mild cf others - that you might need some credit for ( others here say 20% as a guestimate so may need  £40 of  that £50 in a colder year)

Ofgem cap rate / cost predictions ( but remember that far ahead they are just predictions) for last 6 m of 2023 are currently lower.  Nearly 20% lower in latest Cornwall insights figures than now. 

Gerry1

Tigger448 said:

Reed_Richards said:

You should not pay any attention to the DD amounts as that will "come out in the wash"; if you use it you will have to pay for it sooner or later, if you don't use it you can claim a refund on your credit balance.  

The DD with Octopus is automatically £100 cheaper 

Did you mean to say that with Octopus the annual standing charges are £50 less for each fuel?  Other things being equal that's a good reason to switch, but a lower monthly DD isn't.

dealyboy

Hi @Scot_39 ...

EDF have just updated their rate cards for April,  e.g.

https://www.edfenergy.com/sites/default/files/dm1903_pl1_rate_card_builed_aw4_v1.pdf

...  that's a 23% increase on the night rate Eastern E7.

edit: ... but just switched from E.ON Next . excellent EDF E7 tariff and SC .