Change of Tariff

scouseware

My fixed Dual Fuel is shortly coming to an end with EDF and I have received a letter saying at the end that I will be going on a standard Tariff. Is this a contract? if I dont sign or agree to anything and it just rolls onto if can I easily leave. I ask such that I can find out is something better comes along after a while I can leave EDF with no penalty.

Ayr_Rage

There is nothing to sign or agree, at the end of the fix you automatically go onto the SVT.

Once on the SVT you can change suppliers without notice or penalty.

[Deleted User]

Yes. Suppliers cannot put you onto a new fixed term tariff without your agreement. Standard tariffs have historically been the most expensive tariffs and have no exit fees.

Scot_39

Standard tariffs have definitely not always been the most expensive - not at the beginning of a fix period anyway - not with the big 6.

I have been on 2 year fixes in the past when administering my parents accounts under POA that set a real premium over current svt rates - and took them for the security as they were on "fixed" income.

My sister came off a 2 Yr fix in Feb with SP - 2 years ago it was a good few % more expensive than SVT at her usage - as was the one before it.  But her rates doubled when it ended.  So a good decision in the end.

Even some of the current round of 1yr fixes are iirc charging slightly more than the current July SVT.

Ayr_Rage

@Scot_39 prior to the recent energy crisis just about every fix was below the SV rates at the time the fix was taken.

[Deleted User]

Remember the Ofgem Collective Switching Trial to get people off the SVT:

https://www.ofgem.gov.uk/sites/default/files/docs/2018/11/cs1_qualitative_report_for_publication_0.pdf

Page 17 refers to why it was being considered. It has been quietly dropped as a proposal.

Scot_39

Ayr_Rage said:

@Scot_39 prior to the recent energy crisis just about every fix was below the SV rates at the time the fix was taken.

Prior to the current energy crisis - 30+ suppliers hadn't failed.

Edit - And as someone who personally couldn't benefit - but had to pay for those failures - still doing so in fact via the cap Network SoLR levy - I have no desire to see it return to that badly regulated model.

It is at best optimistic - at worst illogical - to expect the market to bounce back to what historically I would actually say has been an abnormal situation.

Edit 2 : and the primary driver in Europe remains the war in Ukriane - and is likely to do so.
People thought food inflation was easing - Russia had other ideas.  And Europe still buys energy from Russia Inc shipped oil and LPG gas.

And my post specifically didn't refer to all suppliers.

But my family examples were all in fact pre current energy crisis - inc BGas, SGas, EOn anc SP - including that last fix taken in Feb 21, and the one before that in 2019.

[Deleted User]

But my family examples were all in fact pre current energy crisis - inc BGas, SGas, EOn anc SP - including that last fix taken in Feb 21, and the one before that in 2019.

Why did Ofgem have Collective Switching Trials in 2018 aimed at consumers who had never switched before to get them off expensive SVTs? The proposal was quietly dropped when suppliers started falling off the edge of the cliff.

https://www.ofgem.gov.uk/publications/ofgems-collective-switch-trials

Scot_39

The one doesn't disprove the others.

Ofgems poor regulation failed.

Any policy aimed at encouraging it should be in my opinion viewed purely in that light.

Switch to save was of limited benefit to many, no benefit to some, all paid SoLR levy as a result of failures.

Scot_39

@Gerry1

Thanks for the full text - I really do need to register with my library's e-service to read these.

The line that strikes me is the - allbeit simplistic

"Smart meters are not mandatory and billpayers can refuse to have the devices installed, and you can do this indefinitely."

Lines like that obviously lead to confusion amongst those reading such articles.

Qyburn

Scot_39 said:

Standard tariffs have definitely not always been the most expensive - not at the beginning of a fix period anyway - not with the big 6.

Going back some years suppliers had a default tariff that people went onto if they didnt make a choice. That was indeed the most expensive. Alongside this, they offered other variable tariffs, typically different splits between unit rate and standing charge. These were cheaper than the default rate, and typically cheaper than fixes.

Since those days the price cap came into being, setting a maximum for that default, so that customers who didn't make a choice weren't ripped off too much.

This was all before the recent price rises that meant suppliers could barely make a profit at all, even at the maximum capped price.