co-op energy comparison

smileguy wrote: »

Hello all my co-op fix for longer September 2017 tariff is about to end which I pay 66 pounds a month for .When I did a comparison on co-op energy website ,using my existing tariff it says I can save 202 pounds but pay 72 pounds a month.I Could not see how I was saving if I was paying an extra 6 pounds a month .I contacted co-op energy which said that the comparison was with the standard tariff ,so I asked why it asked for my existing tariff plus where does it tell me the comparison is with a standard tariff.Has anyone else found the process of changing tariffs so confusing.I personally prefer to compare unit prices and standing charges for a comparison.

Ofgem’s mandated cost projection policy. Your costs for the next 12 months will be based on,say, 1 month on your present tariff AND 11 months on the supplier’s standard variable tariff. So, your costs for the next 12 months have been artificially inflated/increased by £284. You, however, decide to switch to another fixed tariff which costs £72 a year more but, at the same time, saves you £202. (£284 - £72).

In fairness to Ofgem, some form of assumption has to be made if future costs are to be based on a rolling 12 month period. Given that 70% of consumers are still on standard tariffs, the methodology works. It doesn’t work for consumers on fixed tariffs with less than 12 months to run. Use the annual cost comparison on MSE CEC to get a more accurate picture.

smileguy wrote: »

cheers thanks for the quick reply Hengus you have explained it a lot better than co-op customer support could .I thought the government were cutting down on the amount of tariffs there seems more to choose from than ever.

The 4 tariffs per supplier rule seems to have been quietly forgotten by Ofgem following the CMA investigation into energy markets. Personally, I am not sure that allowing suppliers to offer tariffs just for electric vehicle owners (for example) is going to make things Simpler, Clearer and Fairer (Ofgem jargon) for the Millions of consumers who have yet to be persuaded to switch for the first time.