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I might be wrong, but I think you're being a tad optimistic to think they will tailor offers to individuals in that way. More likely they will provide offers according to what they predict the market will do in the future.
I was told they (Powershop) tailor offers based on knowing your annual consumption. When I mentioned my current supplier (Robin Hood Energy) had overestimated my annual consumption by about 2000 kWh (I use 8000 kWh/yr, RHE wrongly say 10,000 kWh/yr) I was advised by Powershop CS to leave the error in place as I would then be offered better deals (the chance to pre-buy more energy at a cheaper rate) than if I forced RHE to correct my erroneous annual consumption figure that they will eventually forward to Powershop as part of the switch protocol.If they have a 'cannot use before' date then I'd be wary of them having a 'must use by' date too.
Yes this was something I wondered/worried about. You wouldn't want to buy so much credit for use say in June then find you haven't actually used it all in June and so what happens to the rest? Does it go towards your account credit or do you lose it? I will know more when my account goes live (hopefully in a few days)0 -
I was advised by Powershop CS to leave the error in place as I would then be offered better deals (the chance to pre-buy more energy at a cheaper rate)
Did you get this in writing, as it might be something you want to quote back to them at a later date.
Firstly, I assume that as you start using energy with them they will soon see your actual consumption is lower, and if the level of monitoring of what you use is as precise as suggested then they will know the packs you need are much smaller fairly rapidly.
Secondly, if the packs are time-limited then you need them to be reasonably matched to your actual consumption. If the pack for say June is 25% (reflecting the higher RHE figure) more than you will actually use then you'll finish the month with spare energy. If that rolls over into the next month then fine, but if it is time limited then you may be paying the equivalent of a 25% surcharge.You wouldn't want to buy so much credit for use say in June then find you haven't actually used it all in June and so what happens to the rest? Does it go towards your account credit or do you lose it?
The million-dollar question! Logic says that the packs have to be time-limited, otherwise how will Powershop ever make any money. In a similar way to how payg bundles work, at midnight on the last day of the month the remaining unused texts/minutes/Mbs vapourise and you start afresh. If that were applied to your energy use you could be looking at a substantial amount of money vanishing... they wouldn't do that, would they?
Another consideration is what happens at the end of your contract - with normal switching any credit with the old supplier is refunded. I wonder whether Powershop will treat packs in the same way? I.e. if you have any unused energy in a pack whether that will be refunded, or if they are non-refundable? Another bit of smallprint to read!"In the future, everyone will be rich for 15 minutes"0 -
I think you misunderstand - TBH it took me a while to get my head around it. When you buy 'Powerpacks' the money is taken by Direct Debit from your bank. I chose them because they are so cheap. For me in the East Midlands the 'do nothing and not take advantage of buying discounted power in packs price' is Day 15.026 p/kWh, E7 8.442 p/kWh, Daily charge 15.761p. However, if I take advantage of all the discounted powerpacks then over the year I will effectively pay Day 11.739 p/kWh, E7 6.594 p/kWh, Daily charge is the same I think at 15.761p. This in nowhere near credit meter charges - it is the cheapest in the whole market! - unless you know differently of course;) Put those figures in your spreadsheet and see what your annual total is.:DTo me this seems like a bizarre way of buying POWERCARDS (a £5 card you could buy in the SSEB/SCOTTISHPOWER region.)
I have looked it up and my brain totallly drained.
SHUT THEM DOWN.
We are trying to get away from paying for energy supply in cards/packs/keys.(fuel poverty)
Away you go back to New Zealand. Thank you and good evening.0 -
I think you misunderstand - TBH it took me a while to get my head around it. When you buy 'Powerpacks' the money is taken by Direct Debit from your bank. I chose them because they are so cheap. For me in the East Midlands the 'do nothing and not take advantage of buying discounted power in packs price' is Day 15.026 p/kWh, E7 8.442 p/kWh, Daily charge 15.761p. However, if I take advantage of all the discounted powerpacks then over the year I will effectively pay Day 11.739 p/kWh, E7 6.594 p/kWh, Daily charge is the same I think at 15.761p. This in nowhere near credit meter charges - it is the cheapest in the whole market! - unless you know differently of course;) Put those figures in your spreadsheet and see what your annual total is.:D
I can only do a comparison based on my usage and postcode. Powershop for me works out at a Standard Charge of 16.601p per day/13.503 per kWh = £465.68 per year with an Easy Saver Guarantee for one year of 16.601p per day/10.808 per kWh or £384.73.
The cheapest market deal for me would be 13.157p per day/10.2241 per kWh or £355.25 per year for no effort other than one meter reading a month.
Please do not claim that something is the cheapest on the market when you have no way of checking. The deal may be the cheapest for your usage and for your postcode; however, if distorted estimates are being used for comparisons then I would be wary of the result.0 -
Glad I saw this thread.
Having just got my latest enormous bill from EON I had a look on compare the market and Powershop came up the cheapest. Don't have time for faffing about buying energy packs-whatever the heck that means- I have enough bother keeping up with my Now TV!
Will keep looking then
) 0 -
I am not sure how PCWs are going to cope with this type of offer. The CA Comparison Tool shows that if I buy all my electricity via the App/offers, that my yearly charge will be £348.73. However, the Easy Saver Guarantee, for the first year only gives a protected price of £443.63.
The standard variable rate is I suppose just - standard and variable. So, if for example, I am 7 months into my first year with Powershop then I guess that any comparison for the next 12 months has to be based on 12- 7 months on the SVR PLUS 5 months on WHAT (the Easy Saver, the Buy on our App or the Standard Price).
Presumably, if a customer stays past the first 12 months, then the Easy Saver protection lapses so the cost of any future energy bought via the App (less any discounts) will be based on the Standard Price (as Powershop calls it) without any price protection.
My guess is that a person who has got the time to read the meter and make judgements about what amount of energy to buy and when, may get a competitive price. However, Mr and Mrs Average may default in the first year to the Easy Saver Promise protection which is £60 higher than the price shown (in my case) on PCWs.0 -
I am not sure how PCWs are going to cope with this type of offer.
That, in a nutshell, is my concern about the conflict in the Government/Ofgem approach to energy and the consumer.
On the one hand spend billions on rolling out smart meters which, apart from spin, only really benefit consumers if they are used to implement 'smart' tariffs with pricing reflecting generation/transmission costs at the actual time of usage. Consumers get to decide whether to pay extra for convenience of using energy when they want to, or else save by adjusting their consumption around the cheaper times.
On the other hand, Government/Ofgem say the answer to consumers paying over the odds is to make everything simpler - fewer tariffs, compulsory standing charges, capping etc.
The kind of tariffs which would genuinely benefit consumers aren't compatible with the overly simplified price comparison models which are deemed necessary for the average consumer to understand and use.
My reaction to yesterday's announcement of a SVT price cap when the Conservatives win the election was simple: "How much more is it going to cost me this time?"
"In the future, everyone will be rich for 15 minutes"0 -
That, in a nutshell, is my concern about the conflict in the Government/Ofgem approach to energy and the consumer.
On the one hand spend billions on rolling out smart meters which, apart from spin, only really benefit consumers if they are used to implement 'smart' tariffs with pricing reflecting generation/transmission costs at the actual time of usage. Consumers get to decide whether to pay extra for convenience of using energy when they want to, or else save by adjusting their consumption around the cheaper times.
On the other hand, Government/Ofgem say the answer to consumers paying over the odds is to make everything simpler - fewer tariffs, compulsory standing charges, capping etc.
The kind of tariffs which would genuinely benefit consumers aren't compatible with the overly simplified price comparison models which are deemed necessary for the average consumer to understand and use.
My reaction to yesterday's announcement of a SVT price cap when the Conservatives win the election was simple: "How much more is it going to cost me this time?"
I very much agree with your last point.
Thinking about the Powershop issue a bit more, the 'fair' way of listing them on a PCW would be to use the EasySaver Protection Price which, provided the consumer only uses the projected amount of annual consumption, is a guaranteed maximum price. This would compare like with like.
In my case, for 3000kWhs, this would be £443.63. I have absolutely no idea if the comparison price of £384.73 (based on App purchases) is even possible.0 -
It is implicit in my comment that 'cheapest on the market' applies for me in the East Midlands for the tariff I need (E7.) Why would I get quotes for other areas of the UK that I'm not in!!Please do not claim that something is the cheapest on the market when you have no way of checking. The deal may be the cheapest for your usage and for your postcode; however, if distorted estimates are being used for comparisons then I would be wary of the result.0
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