Stick with EDF fix or move to standard rate for energy?

michaels

CSI_Yorkshire said:

michaels said:

dillydilly1 said:

yep just got similar email - stay on fix @ 13p/unit until July24 or take the £150 hit and drop to the variable 7.4p/unit
current expectations is that the cap could drop further in Oct then hold steady over the winter, so on my annual use of 10k units that's a difference of £600/yr - looks an easy one to take the penalty hit, unless anyone objects ?

  The energy companies are not allowed to buy the energy for next winter now, it has to be purchased a rolling 4 months before it is supplied 

That's nonsense, and directly contradicts your posts on another thread where you were claiming that suppliers buy all energy for fixes up front on the day you sign.

Neither are true.

Same for both - rather than being energy speculators the supply companies are retailers - they buy wholesale, add a markup and sell retail.  The companies who did not buy to reflect their liabilities are the ones that went broke when prices moved unexpectedly.

CSI_Yorkshire

michaels said:

CSI_Yorkshire said:

michaels said:

dillydilly1 said:

yep just got similar email - stay on fix @ 13p/unit until July24 or take the £150 hit and drop to the variable 7.4p/unit
current expectations is that the cap could drop further in Oct then hold steady over the winter, so on my annual use of 10k units that's a difference of £600/yr - looks an easy one to take the penalty hit, unless anyone objects ?

  The energy companies are not allowed to buy the energy for next winter now, it has to be purchased a rolling 4 months before it is supplied 

That's nonsense, and directly contradicts your posts on another thread where you were claiming that suppliers buy all energy for fixes up front on the day you sign.

Neither are true.

Same for both - rather than being energy speculators the supply companies are retailers - they buy wholesale, add a markup and sell retail.  The companies who did not buy to reflect their liabilities are the ones that went broke when prices moved unexpectedly.

So which is it?  Do they "have to purchase a rolling 4 months before it is supplied" or do they "have to hedge the whole year up front"?

Or are you just making things up again?

Given that one of the ways that OFGEM allow suppliers to make more than the ~1.9% margin is with 'more efficient hedging strategies', mandating that they all purchase the same way and at the same time would be a little odd.

michaels

CSI_Yorkshire said:

michaels said:

CSI_Yorkshire said:

michaels said:

dillydilly1 said:

yep just got similar email - stay on fix @ 13p/unit until July24 or take the £150 hit and drop to the variable 7.4p/unit
current expectations is that the cap could drop further in Oct then hold steady over the winter, so on my annual use of 10k units that's a difference of £600/yr - looks an easy one to take the penalty hit, unless anyone objects ?

  The energy companies are not allowed to buy the energy for next winter now, it has to be purchased a rolling 4 months before it is supplied 

That's nonsense, and directly contradicts your posts on another thread where you were claiming that suppliers buy all energy for fixes up front on the day you sign.

Neither are true.

Same for both - rather than being energy speculators the supply companies are retailers - they buy wholesale, add a markup and sell retail.  The companies who did not buy to reflect their liabilities are the ones that went broke when prices moved unexpectedly.

So which is it?  Do they "have to purchase a rolling 4 months before it is supplied" or do they "have to hedge the whole year up front"?

Or are you just making things up again?

Given that one of the ways that OFGEM allow suppliers to make more than the ~1.9% margin is with 'more efficient hedging strategies', mandating that they all purchase the same way and at the same time would be a little odd.

They don't have to hedge, they can gamble the company instead if they so wish but given the small margins on large turnover they would only need to see a small adverse market movement to be wiped out.

Don't need to look too far for examples of (former) energy suppliers who are no longer around because they did not hedge. If an energy supply company wanted to speculate on future energy prices there would be much cheaper and more efficient ways of doing so than by selling unhedged fixes to customers - but they are not in the business of energy speculation.

CSI_Yorkshire

michaels said:

CSI_Yorkshire said:

michaels said:

CSI_Yorkshire said:

michaels said:

dillydilly1 said:

yep just got similar email - stay on fix @ 13p/unit until July24 or take the £150 hit and drop to the variable 7.4p/unit
current expectations is that the cap could drop further in Oct then hold steady over the winter, so on my annual use of 10k units that's a difference of £600/yr - looks an easy one to take the penalty hit, unless anyone objects ?

  The energy companies are not allowed to buy the energy for next winter now, it has to be purchased a rolling 4 months before it is supplied 

That's nonsense, and directly contradicts your posts on another thread where you were claiming that suppliers buy all energy for fixes up front on the day you sign.

Neither are true.

Same for both - rather than being energy speculators the supply companies are retailers - they buy wholesale, add a markup and sell retail.  The companies who did not buy to reflect their liabilities are the ones that went broke when prices moved unexpectedly.

So which is it?  Do they "have to purchase a rolling 4 months before it is supplied" or do they "have to hedge the whole year up front"?

Or are you just making things up again?

Given that one of the ways that OFGEM allow suppliers to make more than the ~1.9% margin is with 'more efficient hedging strategies', mandating that they all purchase the same way and at the same time would be a little odd.

They don't have to hedge, they can gamble the company instead if they so wish but given the small margins on large turnover they would only need to see a small adverse market movement to be wiped out.

Don't need to look too far for examples of (former) energy suppliers who are no longer around because they did not hedge. If an energy supply company wanted to speculate on future energy prices there would be much cheaper and more efficient ways of doing so than by selling unhedged fixes to customers - but they are not in the business of energy speculation.

You're still missing the point.

So far you've said "Suppliers can't buy for next winter now, they have to buy 4 months rolling in advance" AND "Suppliers hedge the complete value of fixes up front".

How are they supposed to hedge 12 months ahead when by your own terms they have to buy 4 months rolling in advance?

So either they can buy as far ahead as they want - and could quite happily buy for next winter now - or they have to buy 4 months advance and so can't hedge a 12 month contract.

Which of your two completely contradictory statements are you going to back?

littleteapot

dealyboy said:

@brewerdave said:

brewerdave said:

My fix til end June 2024 will cost me ~ £500pa more for electricity alone - so I'm jumping today to the SVT -If they charge the exit fee so be it. Only took the fix last year because of the market predictions which were pretty dire - but then Liz Truss threw the taxpayers under the bus , along with home owners!!
What's amusing is that their estimate for my monthly payment on SVT will be £40 less than now - but there is an urgent message to ask me to review my DD in case I'm not paying enough !!

For completeness - my switch to SVT takes place wef tomorrow - but the balance has already been updated with a debit of £100, and I didn't get a £150 bribe to fix a year ago ,so good luck to those who think that EDF customer service have guaranteed no exit fees !!

Is the new EDF fix 'Essentials Exclusive' available/suitable for you? (can be found under 'Change tariff').

Thanks for the heads up on that one. Just switched to that and locked in a night rate of 8.4p/kWh till July 2024 so we're safe whatever happens to prices next winter

dealyboy

@littleteapot said:

dealyboy said:

@brewerdave said:

brewerdave said:

My fix til end June 2024 will cost me ~ £500pa more for electricity alone - so I'm jumping today to the SVT -If they charge the exit fee so be it. Only took the fix last year because of the market predictions which were pretty dire - but then Liz Truss threw the taxpayers under the bus , along with home owners!!
What's amusing is that their estimate for my monthly payment on SVT will be £40 less than now - but there is an urgent message to ask me to review my DD in case I'm not paying enough !!

For completeness - my switch to SVT takes place wef tomorrow - but the balance has already been updated with a debit of £100, and I didn't get a £150 bribe to fix a year ago ,so good luck to those who think that EDF customer service have guaranteed no exit fees !!

Is the new EDF fix 'Essentials Exclusive' available/suitable for you? (can be found under 'Change tariff').

Thanks for the heads up on that one. Just switched to that and locked in a night rate of 8.4p/kWh till July 2024 so we're safe whatever happens to prices next winter

Well done littleteapot   ... that's cheaper than my fix offer 8.66p Eastern! (DD whole of bill monthly).

What region are you in if you don't mind me asking?

littleteapot

dealyboy said:

@littleteapot said:

dealyboy said:

@brewerdave said:

brewerdave said:

My fix til end June 2024 will cost me ~ £500pa more for electricity alone - so I'm jumping today to the SVT -If they charge the exit fee so be it. Only took the fix last year because of the market predictions which were pretty dire - but then Liz Truss threw the taxpayers under the bus , along with home owners!!
What's amusing is that their estimate for my monthly payment on SVT will be £40 less than now - but there is an urgent message to ask me to review my DD in case I'm not paying enough !!

For completeness - my switch to SVT takes place wef tomorrow - but the balance has already been updated with a debit of £100, and I didn't get a £150 bribe to fix a year ago ,so good luck to those who think that EDF customer service have guaranteed no exit fees !!

Is the new EDF fix 'Essentials Exclusive' available/suitable for you? (can be found under 'Change tariff').

Thanks for the heads up on that one. Just switched to that and locked in a night rate of 8.4p/kWh till July 2024 so we're safe whatever happens to prices next winter

Well done littleteapot   ... that's cheaper than my fix offer 8.66p Eastern! (DD whole of bill monthly).

What region are you in if you don't mind me asking?

Also eastern. Sorry that was a memory failure on my part. Just gone back and checked and it is indeed 8.66p same as yours.

dealyboy

@littleteapot said:

dealyboy said:

@littleteapot said:

dealyboy said:

@brewerdave said:

brewerdave said:

My fix til end June 2024 will cost me ~ £500pa more for electricity alone - so I'm jumping today to the SVT -If they charge the exit fee so be it. Only took the fix last year because of the market predictions which were pretty dire - but then Liz Truss threw the taxpayers under the bus , along with home owners!!
What's amusing is that their estimate for my monthly payment on SVT will be £40 less than now - but there is an urgent message to ask me to review my DD in case I'm not paying enough !!

For completeness - my switch to SVT takes place wef tomorrow - but the balance has already been updated with a debit of £100, and I didn't get a £150 bribe to fix a year ago ,so good luck to those who think that EDF customer service have guaranteed no exit fees !!

Is the new EDF fix 'Essentials Exclusive' available/suitable for you? (can be found under 'Change tariff').

Thanks for the heads up on that one. Just switched to that and locked in a night rate of 8.4p/kWh till July 2024 so we're safe whatever happens to prices next winter

Well done littleteapot   ... that's cheaper than my fix offer 8.66p Eastern! (DD whole of bill monthly).

What region are you in if you don't mind me asking?

Also eastern. Sorry that was a memory failure on my part. Just gone back and checked and it is indeed 8.66p same as yours.

That's OK at least you're in the smug club  .

kyorin

dealyboy said:

@brewerdave said:

brewerdave said:

My fix til end June 2024 will cost me ~ £500pa more for electricity alone - so I'm jumping today to the SVT -If they charge the exit fee so be it. Only took the fix last year because of the market predictions which were pretty dire - but then Liz Truss threw the taxpayers under the bus , along with home owners!!
What's amusing is that their estimate for my monthly payment on SVT will be £40 less than now - but there is an urgent message to ask me to review my DD in case I'm not paying enough !!

For completeness - my switch to SVT takes place wef tomorrow - but the balance has already been updated with a debit of £100, and I didn't get a £150 bribe to fix a year ago ,so good luck to those who think that EDF customer service have guaranteed no exit fees !!

Is the new EDF fix 'Essentials Exclusive' available/suitable for you? (can be found under 'Change tariff').

The Essential Exclusive is available to me, but I would have to pay 2x £150 in exit fees, even though I am already with EDF! This means there is no incentive to remain with EDF if there is a better deal elsewhere. Does anyone know of an equivalent or better option than EDF's "Essential Exclusive" from another supplier currently?

itzmee

I have just switched from EDF Fix Total Service Jul23v3 to the Essentials Exclusive tariff.  I worked out that I would pay over £900 more if I didn't switch, so even with the exit fees of £300 I will still be saving over £600 in the next year, however I was given £150 credit when I initially signed up so it's not that bad a loss.  I also have the peace of mind that the costs are not much different to the current variable rate and will be fixed during the next year.

New rates: 

Electricity unit rate: 29.74p per kWh
Daily standing charge: 53.96p per day

Gas unit rate: 7.619p per kWh
Daily standing charge: 29.11p per day


Previous rates:

Electricity unit rate: 41.55p per kWh
Daily standing charge: 48.13p per day

Gas unit rate: 13.059p per kWh
Daily standing charge: 27.22p per day