How does this make sense?

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chev_chelios
chev_chelios Posts: 33 Forumite
in Energy
I've just received an offer for a new energy contract. Despite the daily charge and unit price both going up (on both, gas and electric), they say my bills will be lower on this new tariff...

:huh:


energy.jpg

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  • Hasbeen
    Hasbeen Posts: 4,404 Forumite
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    chev_chelios wrote: »
    I've just received an offer for a new energy contract. Despite the daily charge and unit price both going up (on both, gas and electric), they say my bills will be lower on this new tariff...

    :huh:


    energy.jpg

    Your bills will be lower because your current tariff will end/not exist and they will put you on the expensive standard tariff.

    Time to compare to get the best deal for you.
    The world is not ruined by the wickedness of the wicked, but by the weakness of the good. Napoleon
  • dogshome
    dogshome Posts: 3,877 Forumite
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    It's all Smoke & Mirrors

    Due to Ofgems edict that forecasts of a 'Fixed Tariff' customer's future costs for the next 12 months, must be based on the cost of the Fixed Tariffs remaing term, plus the customer rolling over the onto the suppliers expensive Variable Tariff for the time remaining that makes up a year.

    Suppliers use this formula, then to say to customers "Hey, your bills are going to go up to £xxx+, but if you change now to this new tariff , it will be only £xx"
    If the customer isn't savvy and takes it at face value, he/she starts paying the higher price immediately, which is months before the presnt contract with lower prices ends
  • System
    System Posts: 178,093 Community Admin
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    dogshome wrote: »
    It's all Smoke & Mirrors

    Due to Ofgems edict that forecasts of a 'Fixed Tariff' customer's future costs for the next 12 months, must be based on the cost of the Fixed Tariffs remaing term, plus the customer rolling over the onto the suppliers expensive Variable Tariff for the time remaining that makes up a year.

    Suppliers use this formula, then to say to customers "Hey, your bills are going to go up to £xxx+, but if you change now to this new tariff , it will be only £xx"
    If the customer isn't savvy and takes it at face value, he/she starts paying the higher price immediately, which is months before the presnt contract with lower prices ends

    Watch this space. Ofgem has revised its Confidence Code for PCWs;

    https://www.ofgem.gov.uk/system/files/docs/2017/08/august_decision_-_code_-_final_august_31_2017_0.pdf

    I have yet to wade through the pages of Ofgem speak.
  • chev_chelios
    chev_chelios Posts: 33 Forumite
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    Hasbeen wrote: »
    Time to compare to get the best deal for you.

    My contract ends on the 30th November. When can/should I start looking? Can I pick my switch date myself? I've forgotten how it went last time.
  • System
    System Posts: 178,093 Community Admin
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    chev_chelios wrote: »
    My contract ends on the 30th November. When can/should I start looking? Can I pick my switch date myself? I've forgotten how it went last time.

    You will receive a letter/e-mail from your existing supplier to say that your fixed contract is coming to an end. Licence Conditions require this to be sent out in the 49 to 42 day period. You can then switch without fear of an exit fee,

    Not all suppliers allow you to choose the date of the actual transfer. If you want to ensure that you stay on your existing contract for as long as possible then delay the request to switch. Provided the losing supplier is notified in the period end of contract to plus 20 days BY INDUSTRY that a transfer is in progress then you will remain on your present tariff terms until the transfer goes through.
  • nic_c
    nic_c Posts: 2,928 Forumite
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    Some suppliers have a switch guarantee on how long the switch will take. Some suppliers will let your old supplier know soon, some will wait until then 14 day cooling off period has gone before notifying.

    You can switch once that notice has been sent, as has been said, though as your current tariff has no exit fees not sure its relevant. It depends how late you want to switch, some will try and eek out as much of a cheaper tariff before switching where as others want peace of mind the switch has been done and concentrate on other stuff in life.
  • chev_chelios
    chev_chelios Posts: 33 Forumite
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    Yeah, I'll probably wait till towards end of November and monitor the news for any potential price increases.

    Funny how that table (from the offer they've sent me) says I have no exit fees, the tariff details in my account say something else...

    Capture2.jpg
  • badmemory
    badmemory Posts: 7,791 Forumite
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    edited 13 October 2017 at 3:32PM
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    I suspect that may mean that you are passed the date at which they can charge you exit fees. This is either 41 or 49 days. I'm sure someone will confirm for you.

    ETA must be 49 days - 30 days of November & 18days of October!
  • nic_c
    nic_c Posts: 2,928 Forumite
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    chev_chelios wrote: »
    Funny how that table (from the offer they've sent me) says I have no exit fees, the tariff details in my account say something else...
    "that table" was based on you going onto the standard rate, hence no exit fee
  • chev_chelios
    chev_chelios Posts: 33 Forumite
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    Makes sense now :)
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