Energy Suppliers (strictly no referrals)
This is what I'm offered if I want to fix right now with my supplier:
Payment method: Direct Debit. Electricity unit rate: 61.456p per kWh. Electricity standing charge: 45.317p per day. Gas unit rate: 19.229p per kWh. Gas standing charge: 32.748p per day. Exit fees: £300.00 per fuel. Tariff Term: 12 months
At these rates I'm not even sure if work from home is sensible in the winter
Soldato
Which was exactly why they tried to get the market opened up after privatisation
But as we were discussing last week the changes to the penalty that your new supplier has to pay to your old supplier have gone up so much getting a great switch for now is not going to happen as they will simply be unable to take the hit
Underboss
Eon.Next here....
Current: NExt Flex
Annual cost £2,925.79
My Current Offers:
Next Online V14
Annual cost £3,894.00
Next Online 1yr V 11
Both are 1yr fixes
Current: NExt Flex
Monthly cost
£243.82Annual cost £2,925.79
Electricity | Gas | |
|---|---|---|
| Daily standing charge | 48.91p | 27.22p |
| Unit rate | 27.09p per kWh | 7.23p per kWh |
| Assumed annual usage | 5,271kWh | 16,883kWh |
| Estimated annual cost | £1,606.63 | £1,319.16 |
My Current Offers:
Next Online V14
Monthly cost
£324.501Annual cost £3,894.00
Electricity | Gas | |
|---|---|---|
| Daily standing charge | 48.91p | 27.22p |
| Unit rate | 37.44p per kWh | 9.73p per kWh |
| Assumed annual usage | 5,271kWh | 16,883kWh |
| Estimated annual cost | £2,152.41 | £1,741.59 |
Next Online 1yr V 11
| Electricity | Gas | |
|---|---|---|
| Daily standing charge | 48.91p | 27.22p |
| Unit rate | 41.39p per kWh | 10.68p per kWh |
| Assumed annual usage | 5,271kWh | 16,883kWh |
| Estimated annual cost | £2,360.54 | £1,902.56 |
Both are 1yr fixes
Soldato
Do we have any sources regarding penalty’s that the new supplier has to pay to the old supplier?
Soldato
I linked it in one of the energy threads last week, probably the one in GD
iirc its now 85% of the difference
Edit found it, it is 85%
Energy price cap set to change every three months and cheaper switchers' deals effectively kiboshed under new plans unveiled by Ofgem
The energy price cap, which governs what most pay for their energy, is set to change every three months from October under plans announced by Ofgem today. The regulator also revealed it will also make the 'market stabilisation charge' harsher. This is a charge levied on firms acquiring new...
www.moneysavingexpert.com
Soldato
So it’s only relevant when the wholesale price drops by 10% which hasn’t happened for a while now.
The only way to guarantee market stability is to move everyone onto a variable rate, that way the market can closely follow the wholesale price a rid the gambling practices for short term gain long term harm.
The only way to guarantee market stability is to move everyone onto a variable rate, that way the market can closely follow the wholesale price a rid the gambling practices for short term gain long term harm.
Soldato
Er no, well
The point being made was that if there is a correction, as expected at some point, then even if the market rate falls significantly, then you wont get cheap deals since the new company wont be able to afford it.
Eg Elec price falls by 50%, lets say 30p to 15p. >10% so new supplier has to pay old supplier 85% of the impact. So you would have hoped to be seeing new deals for 15p since the market rate has plummeted, but your new supplier is in effect paying 15p + 85%x15p = 27.78p per unit. IE they cannot track the market even if they can buy at spot
Moving everyone onto variable rate is probably what should happen but its not allowed as the price cap is stopping that happening so they would need to ditch that mechanism completely, and then individuals would be at risk of the market price.
Your not moving to market price if by default its not market price they are all offering.
Its not the gambling practices that are the issue, its the combination of everything thats in force.
As I said before, if you want to go back to the old ways of doing it thats fine, but all the current combination is doing is killing competition and forcing the market to a more oligopoly like position.
You could argue offgen is forcing them to gamble as they have to buy ahead. Its all terminology and viewpoints at that point.
All the recent changes seem to be to defend the companies rather than help the consumers.
Eventually if the market prices fall we will see them take effect, the changes just mean that will take some time to happen since the prices the companies have purchase at will in effect be setting the market rate in the UK. Once they all start to reduce prices they will fall broadly in line, but as a consumer its going to be practically impossible under the rules to move to a significantly cheaper deal quickly. And lets face it, the reason you move is to get a noticeably better deal. I wouldnt bother for less than about £40 a year, not worth the hastle if it goes wrong.
Now dont get we wrong, it was too easy to setup an energy supplier in effect, it needs to be a bit more restricted and some capital buffer in place so that if they go pop mostly consumer balances are ring fenced and then in theory there is less pooling of the risk.
Soldato
The fee only applies if the market price drops by 10% and customer is enticed to switch to a cheaper rate by another company. No one currently is offering cheaper deals and certainly not cheaper than what people had before these huge price increases.
I’m all for change. Companies are only offering fixed deals to entice in new customers, this practice is gambling as the market can swing rapidly as we are seeing. If everyone is on a variable tariff which follows the wholesale price then we won’t have all these new companies coming in offering these fantastic short term, unsustainable prices, nobody would jump around from place to place, none of them would collapse and we wouldn’t have this mess.
I’m all for change. Companies are only offering fixed deals to entice in new customers, this practice is gambling as the market can swing rapidly as we are seeing. If everyone is on a variable tariff which follows the wholesale price then we won’t have all these new companies coming in offering these fantastic short term, unsustainable prices, nobody would jump around from place to place, none of them would collapse and we wouldn’t have this mess.
Soldato
Eon Next offering a fix which is £20/month more than I'm currently paying:
Electricity
Daily standing charge -49.65p
Unit rate - 38.19p per kWh
Assumed annual usage - 1,086kWh
Estimated annual cost - £596.07
Gas
Daily standing charge - 27.22p
Unit rate - 9.84p per kWh
Assumed annual usage - 4,586kWh
Estimated Annual Cost - £550.50
No exit fees on both
Might be worth it?
Electricity
Daily standing charge -49.65p
Unit rate - 38.19p per kWh
Assumed annual usage - 1,086kWh
Estimated annual cost - £596.07
Gas
Daily standing charge - 27.22p
Unit rate - 9.84p per kWh
Assumed annual usage - 4,586kWh
Estimated Annual Cost - £550.50
No exit fees on both
Might be worth it?
Soldato
Your again missing the point. The changes mean that even if the market prices drop you wont see it, not for a long time. The new suppliers cant simply be able to offer the market price, its not fixed deals causing this issue its the price cap.
It was also the price cap that was behind a lot of the issues. Sure fixed deals probably didn't help, but even now people are not paying the correct price, the cap is stopping the companies from charging what they should.
The fantastic short term prices were market prices until the massive unpredicted pretty one off event happened, the higher prices from other companies were inflated by buying ahead, as they were forced to do.
Most fixes were short term when you consider how predictable the energy market has been for many years.
I would be very surprised if a new player had they of managed to get to a massive market share and had been forced to buy ahead they would also have gone in just the same way as they wouldn't have had the backup of being well established with reserves.
The cap was the main issue, simply not fit for what it was designed to do, when coming off a fix and moving to a variable rate that is below market is the solution you know the cap isn't functioning.
Simply when a price cap, designed to stop vulnerable people who wouldn't change has the majority of the population on it/moving to it then something is wrong, the majority of the blame must lie with offgem, not the contracts everyone had.
The big players for example often offered rates just as good or very close to some of the next entrants when you shopped around.
In 6 years or so I went from BG to Scot power to Octopus to peoples energy (who went pop recently) and therefore back to BG, thoughout that time one of the big players would always be close to market leading that it made no difference, offering a fixed price deal.
Soldato
BG offered me
Electricity
Standing charge:
38.990p per day
Unit rate:
34.460p per kWh
Electricity
Standing charge:
38.990p per day
Unit rate:
34.460p per kWh
Soldato
Hard to say (inc VAT?) prices don't look terrible, elec is up about 30% vs cap right now and gas a bit more.
My expectation is unless something dramatic changes you may slightly beat the coming change.
Its all a gamble however, even if Ukraine fixes itself the prices will be going up, but it may be that they would see future contracts coming down in price and as such a lower cap.
Soldato
When was this?, online right now best tariff is Loyalty Jun 23 V2 (for existing customers)
and its
Standard unit rate 35.723p / kWh
Standing charge 43.398p / day*
That does vary a little (standing charge) by region however.
They seem to change fairly quickly right now, I am guessing some sort of balancing going on
Actually for a bit of a laugh, the EV special, ouch (although is zero exit fee), low cost is 12am - 5am daily
Peak unit rate 43.142p / kWh
Off Peak unit rate 21.000p / kWh
Standing charge 46.224p / day*
Soldato
Our fixed-rate tariff, Exclusive May 23v1, is exclusive to customers who have moved to us since their previous supplier went out of business - you won’t find it anywhere else online.
Soldato
Hmm ok, that describes me but i cant see that one!
Soldato
Ask them about it
The next cap might bring things down alot 49 days early you can always leave with no charge crystal ball
Soldato
My rates for this tariff are:
standing charge 50.244
unit rate 33.283
Soldato
Weird how BG works
Just happened to stumble across this. Stunned, this was February!
"Dave Wallace knew that his family of seven would have to think big about their energy use. “Our bills have gone up 35% from around £600 a month to just over £800 because we use electric radiators,”"
www.themoneyedit.com
Just happened to stumble across this. Stunned, this was February!
"Dave Wallace knew that his family of seven would have to think big about their energy use. “Our bills have gone up 35% from around £600 a month to just over £800 because we use electric radiators,”"
"We're using dehumidifiers to keep energy bills low"
One reader tells us how he is keeping his energy bills low ahead of the price rise in April with some simple moves to cut costs
www.themoneyedit.com