When is a fix not a fix?

Maccymus

I analysed my ‘fixed’ tariff with EDF Energy to discover that they had increased both the unit rate and the standing charge several times during the fixed year of my contract. How can this be possible? The tariff was EDF Ensure Jul25.

Scot_39

When it is a fixed term CAP tracker as explicitly described - here at launch - I am sure the live online offer will be do so likewise if still available

https://www.edfenergy.com/media-centre/edf-launches-new-tracker-tariff-guaranteed-beat-cap

The cap changes - it stays a fixed price below the cap - one goes up so does the other.

Ayr_Rage

You misunderstood what you signed up for as simple as that, do your homework a little better next time.

It wasn't a fix, it was a fixed term tracker with discounted standing charges.

See the IMPORTANT NOTE!

Google search finds the following.

• What it is: EDF Ensure Jul25 is a 12-month fixed-term tracker tariff. 
• How it works: It guarantees a £50 annual saving compared to the energy price cap through discounted standing charges. 
• Who is it for: It's available to new and existing EDF customers, provided they have a smart meter or are willing to get one. 
• Cost: The discounted standing charges mean the tariff is £50 cheaper than the price cap, regardless of usage or payment method. 
• Important Note: The tariff is a tracker, meaning the unit rates will fluctuate with the price cap, which changes every three months. However, the standing charge discount ensures you'll always pay £50 less than the capped price. 
• Early Exit Fees: Leaving the tariff before the end of the 12-month term incurs an exit fee of £25 per fuel. 
• Smart Meters: Having a smart meter is a requirement for this tariff. 

Maccymus

Okay I misunderstood what I was signing up for. How can I control my costs on my energy spend if I don’t actually have any control? Should I be looking for a different type of fix?

Maccymus

Does this tariff mean that I do not have to be frugal with the heating and can have it on all day and it won’t cost any more?

elsien

Is that a serious question?

No, it does not mean that at all. You pay for all the electricity that you use. It is the unit price that there is in line with the price cap.

If you want a fix that doesn’t fluctuate then look for one that isn’t tied to the price cap and the unit price and standing charge stay the same over the course of the contract. Basically one that hasn’t got the word tracker in it.

Netexporter

The more units you use, the more you will pay. The control you have is to not switch things on. Having a smart meter can help you to understand what individual appliances consume (although that is generally written on them somewhere). Essentially, anything that involves heating uses a lot of electricity, but modern LED lighting uses very little, and electronic stuff like your router, computer etc don't use much. Large TVs could rack up a bit if they are on a lot of the time. Refrigereation uses very little, unless there something wrong with the appliance.

Ayr_Rage

Maccymus said:

Does this tariff mean that I do not have to be frugal with the heating and can have it on all day and it won’t cost any more?

No!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The more you use the more you pay.

The unit price may be fixed but it's not an "all you can use buffet"

That fixed unit rate can be above or below the SV rate depending on how the supplier sees future prices.

Daily standing charges may be discounted from the SV rate but are paid in all cases.

You really need to do some homework.

Scot_39

Maccymus said:

Does this tariff mean that I do not have to be frugal with the heating and can have it on all day and it won’t cost any more?

NO

Fixes dont fix the total bill - just as the Ofgem cap, the EPG protection during the crisis and so related cap trackers dont fix the bill.

The headline Ofgem Cap is not a total price cap - its an indicative price based on their median TDCV - 11500 kWh of gas and 2700 kWh of electric.  

What it actually caps is the daily standing charge and the unit rate(s)/kWh on your domestic bills - but only if your on a supported variable tariff.

So the bottom line is that you use more and you pay more, you use less and you pay less.

Your deal was a tracker - an Ofgem cap tracker - you paid £25 per fuel less than the Ofgem cap - it was fixed term not fixed price.The £25 discounted off the respective standing charges.

It was designed for people who didn't want to get locked into a traditional fix, if the caps dropped further, but gave no such protection for rises.

You might prefer to use an actual fix.  You agree a standing charge and a unit rate - and that is what you pay for the duration.

With fixes if prices go up your protected - thats not true of your EDF tracker.

But if prices drop - the fix prices dont - they would with a tracker.

So many prefer to take a fix tariff with zero exit fees - so if rates drop you can swap to another fix at better rates.

Have a read of the MSE guide here

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

(You might also want to avoid one of the SP fixes - the Flexi - if still available - as has what in business contracts are often called pass through charges - e.g. if Ofgem changes the rules and secondary costs in our bills - they can pass it on - only wholesale price type fluctiations are fixed)

But the simple rule remains - you are agreeing a standing charge and a unit rate - not a total annual charge.

You use more you pay more, you use less you pay less.

If your struggling talk to your supplier, council or citizens advice to see if you might be eligible for ways to lower your consumption / lower your bills.

Lorian

There is no magical all you can eat tariff like you get on mobile phones.

EssexHebridean

Think about it this way - you get an offer from Tesco that you can buy Baked Beans at 20p a tin for a year. You usually buy 1 tin of beans a week, so that will cost you 20p. If you decide that beans are cheap, and you'd like to eat them more often, so increase to buying 2 tins of beans a week, that will cost you 40p. If you decide that beans are SO cheap that you ant to eat beans every day, and increase to buying 7 tins of beans a week, that will cost you £1.40! It is the unit price x the number of units that determines what you pay.