Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • telemarks
    • By telemarks 14th Mar 18, 1:09 PM
    • 161Posts
    • 115Thanks
    telemarks
    Best time of year to switch energy?
    • #1
    • 14th Mar 18, 1:09 PM
    Best time of year to switch energy? 14th Mar 18 at 1:09 PM
    Looking at the Ofgen wholesale prices of energy over the past years, I can't help by notice that "usually" the price drops in summer.
    https://www.ofgem.gov.uk/data-portal/wholesale-market-indicators
    Not surprising, but presumably this means the best deals of the year are "usually" offered in summer. So is it worth delaying switching until then?

    Also following up on my post on OVO credit balance interest, I'd noticed that if your contact starts in early summer, and you pay by direct debit, then you will maintain a credit balance, that with some suppliers gives good interest. Contracts starting in early winter will have negative balances, and hence no potential for interest.

    So is this another reason to start contacts in summer? Or have i missed something important here?
Page 1
    • Hengus
    • By Hengus 14th Mar 18, 1:54 PM
    • 5,723 Posts
    • 3,510 Thanks
    Hengus
    • #2
    • 14th Mar 18, 1:54 PM
    • #2
    • 14th Mar 18, 1:54 PM
    With respect, the market has changed. With an energy cap coming in later this year, and recent wholesale price increases, I doubt that tariffs will fall. If anything fixed tariffs will rise to reduce the SVT/fixed tariff differential - but that's just my opinion.

    Switching now we will allow you to build up a credit balance but suppliers are not Banks so they limit the amount of credit allowed. To put this into perspective, if you had a 200 credit balance in November at 3% interest, then this would realise you 200* 3%/12 or 50p. It is not worth choosing a tariff on the basis that it pays interest or cashback: these factors come into play once you know which suppliers/tariffs are the cheapest for your projected consumption/postcode.
    • matelodave
    • By matelodave 14th Mar 18, 1:57 PM
    • 3,533 Posts
    • 2,187 Thanks
    matelodave
    • #3
    • 14th Mar 18, 1:57 PM
    • #3
    • 14th Mar 18, 1:57 PM
    Not sure you can rely on a better deal in spring or summer but it's the best time to start a contract if you want to stay in credit for as long as possible. The end of March to mid April is probably optimum.

    If you work out your monthy consumption profile then you should be able to predict when you are in credit, when you are in arrears and when you break even.
    Last edited by matelodave; 14-03-2018 at 2:00 PM.
    Love makes the world go round - beer make it go round even faster
    Look after our planet - it's the only one with beer
    • telemarks
    • By telemarks 14th Mar 18, 3:22 PM
    • 161 Posts
    • 115 Thanks
    telemarks
    • #4
    • 14th Mar 18, 3:22 PM
    • #4
    • 14th Mar 18, 3:22 PM
    Not sure you can rely on a better deal in spring or summer .
    Originally posted by matelodave
    I totaly agree you can't rely on summer been cheapest. But I was surprised looking back on the trend on the wholesale price index:
    • In 2017 cheapest Elec was in June Gas in June
    • In 2016 cheapest Elec was in Feb Gas in Aug
    • In 2015 cheapest Elec was in Dec Gas in Dec
    • In 2014 cheapest Elec was in July Gas in July
    • In 2013 cheapest Elec was in June Gas in June
    • In 2012 cheapest Elec was in Aug Gas in Aug
    So "summer" cheapest has been a trend over past years (apart from the Arab cartell constant price falls in 2015/early16)
    With respect, the market has changed. With an energy cap coming in later this year, and recent wholesale price increases, I doubt that tariffs will fall. If anything fixed tariffs will rise to reduce the SVT/fixed tariff differential - but that's just my opinion.
    Originally posted by Hengus
    Agree you do have a strong point here, the market is about to have one of its bigger shake-ups that might well drive the cheaper deals up in price. Will that increase be bigger than the usal summer drift down in price? Who knows. If anyone has a fully functioning crystal ball it would certainly be useful.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,555Posts Today

6,600Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin