Fixed price contract - a good thing?

sillyb

I have just had an interesting chat with a door-to-door representative of EdF energy. I didn't buy but as I didn't recall seeing them in the list last time I went to https://www.energyhelpline.com for a closer look.
Right now they aren't the cheapest option but they aren't the most expensive either. What they appear to have in their favour is a fixed price deal until December 2009.
Any thoughts or experiences anyone?

Ken68

No experiences with EDF, silly, but if they are middle of the road, they are likely to be average against other fixed deals.
With tariffs being so complicated I would go for a straightforward no standing charge deal with the lowest todays prices.
Subject to service ratings tho, and taking into account such things as nPower sculpting, and other tier rate twisting.
If you are a low user ,tiered rates are not a lot of good anyway, you would barely get out of the higher rates at each billing period.

mute_posting

Ken68 wrote: »

No experiences with EDF, silly, but if they are middle of the road, they are likely to be average against other fixed deals.
With tariffs being so complicated I would go for a straightforward no standing charge deal with the lowest todays prices.
Subject to service ratings tho, and taking into account such things as nPower sculpting, and other tier rate twisting.
If you are a low user ,tiered rates are not a lot of good anyway, you would barely get out of the higher rates at each billing period.

Are you advising that OP looks to NSC or standard tarrifs with SC?

First you said go for a "straightforward no standing charge deal" (which unless is is with Ebico, I belive means it IS a tiered tarrif) then say tiered rates are not a lot of good for low users as they wouldn't get out of the tiered units.

The whole point of the tiered units is that they work out cheaper if you stay below the change-over point between tier 1 and 2 (obviously the closer you get the less you save)

If you go over the tier 1 block it will make no difference (with the same supplier) if you are on a NSC or standard tarrif with SC.

MP

Ken68

You lost me there Mute.

mute_posting

You said you'd go for a no standing charge deal, which (AFAIK, unless it is with ebico) will be a tiered tarrif.

A standing charge tarrif has a flat rate of units plus standing charge, on the other hand a no standing charge tarrif simply divvies up the standing charge over the tier 1 units.

If you use less than the tier 1 units each year, you benefit from a no standing charge tarrif, if you go over tier 1, it makes no difference - you end up paying the same.

So you started by saying go for a (tiered) no standing charge tarrif, and then said tiered tarrifs are no good for low users as "you would barely get out of the higher rates" - which is the whole point of them for low users - the rates may be higher but if you don't break over tier 1 you pay less than you would on a (non-tiered) standing charge tarrif.

HTH

MP

Ken68

Sorry for the delay, Mute, got mixed up in calculations. Lost it. An age thing.
Even more reason to choose a simple tariff.
Havn't looked at the fixed deal you mention, silly, but
bear in mind it may limit your options.

UtilityMan_3

Heard an ad on the radio today for NPOW, fixing their prices, for existing customers. Thing that alerted me was "during the Winter months". Why make that statement? Does that mean they can raise it as much as they like in the Summer?

Snafflepants

Hiya,

Just wanted to say I am on a capped price until 2010. It was a roll on from my capped deal that ended in Jan 2008. Our prices are already lower than the current standard rate due to the last lot of price hikes. So if you find a good deal then they can work for you.

My OH works for a supplier and they get a discount but the capped deal we are on is so good its actually cheaper than the staff tariff....

HTH

Snaffles

Ken68

UtilityMan wrote: »

Heard an ad on the radio today for NPOW, fixing their prices, for existing customers. Thing that alerted me was "during the Winter months". Why make that statement? Does that mean they can raise it as much as they like in the Summer?

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=187&refer=Media/PressRel

UtilityMan_3

Lol! That would have been quick!

The ad is on Virgin radio, it just puzzles me, why they promise not to raise prices "during the Winter months"

Seen my "Power" thread Ken? Would be right up your street to take up the mantle!

Just see it as taking the Olympic torch on another leg, but without the police in tow!

Ken68

Could do that Utility, have run several marathons...not sure I would want to upset our host Martin though.