Switching energy provider - worth it?
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Hello
My fixed dual energy deal ends in July.
I've used Martin's Cheapenergyclub to see if its worth switching at this point.
It says I will pay a lot more IF I switch to another provider.
So, is it worth ditching my Fixed deal and going elsewhere and thus paying more but therefore fixing for a longer period into 2018?
His website doesn't seem to touch on this?
My fixed dual energy deal ends in July.
I've used Martin's Cheapenergyclub to see if its worth switching at this point.
It says I will pay a lot more IF I switch to another provider.
So, is it worth ditching my Fixed deal and going elsewhere and thus paying more but therefore fixing for a longer period into 2018?
His website doesn't seem to touch on this?
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Comments
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I expect your not selecting the correct options at the start.
Reality with the current market states that if you are currently on a fixed deal this will be cheaper than future fixed deals (as prices are rising)
When you have less than 12 months fix left, comparison sites cost for you being on the standard tariff for the remainder of the 12 months.
It's a scary cost of taking no action.
However as you are savvy and will switch in July, this is an incorrect prediction for you.
You need to select the left option box at the top. Compare with existing tarrif for a year? or some such words0 -
Hello
My fixed dual energy deal ends in July.
I've used Martin's Cheapenergyclub to see if its worth switching at this point.
It says I will pay a lot more IF I switch to another provider.
So, is it worth ditching my Fixed deal and going elsewhere and thus paying more but therefore fixing for a longer period into 2018?
His website doesn't seem to touch on this?
When it comes to 2 and 3 year deals, you need to sit down with pen, paper and calculator and do your own sums.
For example, yesterday I looked at FU's 3 year fix as another poster mentioned it. The calculations - based on my annual cost - are these:
1. Even FU's cheapest one year fix would cost me about £80 a year more than the cheapest one year fix on the market.
2. The three year fix would cost me about £108 a year than FU's one year fix more or £524 more over 3 years.
3. You can play around with annual % increases but I calculated that the annual rise would have to be in excess of 12% for Year 2 AND Year 3 to make this deal worth it. Moreover, you can bet your pension that suppliers have done their own sums to make sure that long term fixes will not leave them out of pocket.0 -
Some of the longer fixes offered are double the annual cost of their 12 month fix, just in the first year.
Some of the comparison sites are unreliable, at the moment as they make calculations based on March 2018 fixes, when by the time you transfer they will be possibly different April fixes, so different sites give different results.
Npower has changed its April 2018 from the March 2018 fix which contained the new price rise; both standing charges have gone up again, but the unit charges for both fuels have dropped slightly.0 -
Npower's electric April 2018 is much better than their March 2018
I assume lots of people were leaving.
I don't recommend 3 year long fixes. Rarely value for money.
I think this is all off topic myself0 -
I expect your not selecting the correct options at the start.
Reality with the current market states that if you are currently on a fixed deal this will be cheaper than future fixed deals (as prices are rising)
When you have less than 12 months fix left, comparison sites cost for you being on the standard tariff for the remainder of the 12 months.
It's a scary cost of taking no action.
However as you are savvy and will switch in July, this is an incorrect prediction for you.
You need to select the left option box at the top. Compare with existing tarrif for a year? or some such words
It appears I did not select the "right" option.
When I now select the option "This is the way Ofgem suggests your costs should be calculated. It is how much you’ll pay over the next 12 months, assuming you don’t switch." the result says I can save about £120 / year fixing for 1 Year.
This will in affect mean if I switch to this I will pay MORE per month than what I am paying now on my current fixed deal which ends in July.
As prices seem to be rising does this seem like a good idea? Of course I do not know what tariffs or proces are going to be come July/August.0 -
The Ofgem way, is the wrong way! Bizarre I know! (but that is why there are options)
It's difficult to predict the future, but personally I would not be switching any time before May (in your position). And even then I would not be in a rush, but that's my opinion. No point in paying exit fee's, so switch BEFORE 49 days? of the end date. Keep an eye on things though
You may as well have the best deal while the heating is still on.0 -
The Ofgem way, is the wrong way! Bizarre I know! (but that is why there are options)
It's difficult to predict the future, but personally I would not be switching any time before May (in your position). And even then I would not be in a rush, but that's my opinion. No point in paying exit fee's, so switch after 49 days? of the end date. Keep an eye on things though
You may as well have the best deal while the heating is still on.
You can switch up to 50 days before the end of the tariff without penalties. So my April 2017 deal mean that from mid March 2017, I was able to start looking for a new deal without penalties. So I have just done that. I have just saved £128 on a low bill, from £420 a year to £198 a year.It's really easy to default to cynicism these days, since you are almost always certain to be right.0 -
I was in a similar position. All my bills were going up though
So between which two tariffs have you swapping between out of interest, if you don't mind me asking.0 -
It appears I did not select the "right" option.
When I now select the option "This is the way Ofgem suggests your costs should be calculated. It is how much you’ll pay over the next 12 months, assuming you don’t switch." the result says I can save about £120 / year fixing for 1 Year.
This will in affect mean if I switch to this I will pay MORE per month than what I am paying now on my current fixed deal which ends in July.
As prices seem to be rising does this seem like a good idea? Of course I do not know what tariffs or proces are going to be come July/August.
The MSE CEC default for a person in your position is to show prices based on your current tariff only (as opposed to the way Ofgem says it should be calculated)
If you are going to pay a lot more by switching early, then I would probably elect to remain until the tariff is due to expire.
However the choice is yours. Do you want to pay more now for the remaining 3 months (plus possible exit fees if they apply to you) to secure a new fixed tariff you are happy with.
It depends how much comfort you take in knowing what your price is for the future, and also the unknown of what will be the best tariff available to you come July. Only you can answer the first part and no one can answer the second part at this time.0 -
You can switch up to 50 days before the end of the tariff without penalties. So my April 2017 deal mean that from mid March 2017, I was able to start looking for a new deal without penalties. So I have just done that. I have just saved £128 on a low bill, from £420 a year to £198 a year.
If you would have paid £420 for the years consumption based on your existing fixed tariff, and for the coming 12 months now expect to pay only £198 for that same level of consumption, I fear you made quite a poor decision when you fixed last year.
Moreover, if it were me in that position, I would probably have switched much earlier and suffered any early exit fees (which may be offset to a large extent by possible cashback). If you are a memeber of the CEC, I would have hoped you would have received numerous alerts to tell you to have done so (subject to any savings thresholds you set to receive such alerts)
A few months back, there was probably fixed tariffs that could save you even more than those available today.0
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