Would you change supplier?

joshly
joshly Posts: 150 Forumite
in Energy
My current supplier is working out about £63 a year more expensive than Scottish Power are offering on a I year contract with a £30 exit fee.

But I have just started a 2 year price freeze with the current supplier. No exit fees.

Scottish Power could put their tariff rates up next year.

I compared the tariffs on my actual usage.

Is that the sort of saving that would make you change supplier?

Comments

  • JJ_Egan
    JJ_Egan Posts: 20,281 Forumite
    First Anniversary Name Dropper First Post
    £63 for a two year fix and no exit fees .
    I WOULD STICK .
  • AndyPK
    AndyPK Posts: 4,241 Forumite
    First Anniversary First Post
    you could consider it a £63x2=£126 saving.

    you are unlikely to loose £126 in the 2nd year if you shop around?
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    The question is ‘what is your annual cost’? If, say, the annual cost is £720/year, then a £126 increase in year 2 is equivalent to:

    126/720 x 100 = 17.5% in your Bill. BUT.....

    The wholesale cost of energy only accounts for 40p in every £ that we pay. So it follows - all other things being equal - that a 17.5% increase would equate to:

    126/288 or an increase in wholesale prices by over 40%

    The GOLDEN RULE is that suppliers will never offer a fix of any length that they believe will lose them any money.
  • Tom99
    Tom99 Posts: 5,371 Forumite
    First Post First Anniversary
    Hengus wrote: »

    126/288 or an increase in wholesale prices by over 40%

    It went up 400% yesterday
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Tom99 wrote: »
    It went up 400% yesterday

    Yes, for one day or so only because the UK does not stockpile much more than 3 days worth of reserves. We were eating in to our reserves so, as markets do, they put up their prices for a desperate customer. That said, the wholesale cost of gas is rising. This what Bulb told its customers when it announced a 2.8% increase last month:


    Quote Since July 2017, wholesale energy costs have increased by around 11% unquote

    The important thing to note is that a11% increase in wholesale cost does not translate to a 11% increase in your energy bill.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    First Post First Anniversary Combo Breaker
    joshly wrote: »
    My current supplier is working out about £63 a year more expensive than Scottish Power are offering on a I year contract with a £30 exit fee.

    But I have just started a 2 year price freeze with the current supplier. No exit fees.

    Scottish Power could put their tariff rates up next year.

    I compared the tariffs on my actual usage.

    Is that the sort of saving that would make you change supplier?

    My own personal criteria is a saving of £52 per year so yes I would switch. But there are other factors to consider such the length of the contract and exit fee.

    However personally I am leaning heavily towards 100% renewable energy which in my region is Outfox The Market with a saving of £84 a year. But I am at the same time leaning heavily towards Co-operative Energy because I am a member of several co-operatives as well as Co-operative Group and that costs an extra £37 a year. Decisions! Decisions!

    The above probably illustrates that for some people price and savings is a lesser consideration.
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Anthorn wrote: »
    My own personal criteria is a saving of £52 per year so yes I would switch. But there are other factors to consider such the length of the contract and exit fee.

    However personally I am leaning heavily towards 100% renewable energy which in my region is Outfox The Market with a saving of £84 a year. But I am at the same time leaning heavily towards Co-operative Energy because I am a member of several co-operatives as well as Co-operative Group and that costs an extra £37 a year. Decisions! Decisions!

    The above probably illustrates that for some people price and savings is a lesser consideration.

    A fair and reasonable point. As I am sure you know, consumers that pay for green energy have no guarantee that the kWhs that they use are actually green in origin.
  • Robisere
    Robisere Posts: 3,237 Forumite
    First Anniversary Photogenic First Post Combo Breaker
    I've just been proposed a saving of £55 a year to switch from EDF to a small new supplier. I won't switch, because I have had an excellent relationship with EDF for a long time now. They have a very good, very efficient website that accepts my regular meter readings and acts upon them within a 48 hour moximum. There is a chatline which works and responds quickly and great customer service. Plus I have the Online Saver Aug 2018, which is bound to be upgraded soon. Lose all that for an unknown service and less than £5 a month? No thank you!
    I think this job really needs
    a much bigger hammer.
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