Electricity Suppliers - advice?

[JohnW2]

My current 1-year fixed-price contract with my electricity supplier (E.ON) comes to an end in about five weeks, and the best tariff they are offering me thereafter would represent an increase of about 27% over what I am currently paying. I have therefore, for the first time in my life, been moved to look at 'comparison websites'.

All the comparison sites I've looked at are offering much the same deals, many much more attractive (i.e. cheaper) than what E.ON has to offer.

At best, I am being offered deals which would actually cost 2%-4% less than I am currently paying (as compared with ~27% more with E.ON), at least some of them being 1-year fixed-price deals.

Looking to the longer-term, one of the most seemingly attractive I've found is a 3-year fixed-price deal (from "Together Energy") which would, for those three years, cost me only about 9% more than I am currently paying (and about 14% less that I would pay for the first 1-2 years if I stayed with E.ON).

The arithmetic is clear enough but, as one would expect, nearly all of the 'attractive' (cheap) deals on offer are from (presumably 'small and young') suppliers that I have never heard of.

The arithmetic is clear enough, but I wonder how I should feel about "(presumably 'small and young') suppliers that I have never heard of". What are people's experiences? Is the 'service' (whatever that may be) provided by such suppliers satisfactory (and/or appreciably different from what one gets from 'the big 6')? What happens if a small supplier goes bust? What else should I be thinking about?

I have, by the way, attempted to 'negotiate' with E.ON, but I cannot find anyone capable of doing any more than read from the 'menus' that I can effectively see for myself!

Many thanks for any thoughts!

Kind Regards, John

 

[reds42]

I regularly change supplier chasing the cheapest prices, which seem to always be the small new companies.

People report terrible customer support with some companies, but Ive never had an issue where I have had to deal with customer services so far thankfully.

Two previous suppliers I have been with went bust (prices really too good to be true!) but thats not caused any great problem and you don't loose any credit you have built up. All that happens is you sit tight until ofgem get your account moved to another supplier, then if you dont like the deals they offer you just switch again to someone else.

I got moved to together select when my last supplier went bust, but have just switched to avro as they were cheaper for me. Who has cheapest prices will vary as to the area you live in and your usage - no one suplier is best for everyone.

Be wary of some comparison sites as they dont always show you all deals available. The moneysaving expert comparison seems to be quite impartial.

The small suppliers all seem to charge you one month ahead, just something to bare in mind.

 

[Notch7]

My current 1-year fixed-price contract with my electricity supplier (E.ON) comes to an end in about five weeks, and the best tariff they are offering me thereafter would represent an increase of about 27% over what I am currently paying. I have therefore, for the first time in my life, been moved to look at 'comparison websites'.

All the comparison sites I've looked at are offering much the same deals, many much more attractive (i.e. cheaper) than what E.ON has to offer.

At best, I am being offered deals which would actually cost 2%-4% less than I am currently paying (as compared with ~27% more with E.ON), at least some of them being 1-year fixed-price deals.

Looking to the longer-term, one of the most seemingly attractive I've found is a 3-year fixed-price deal (from "Together Energy") which would, for those three years, cost me only about 9% more than I am currently paying (and about 14% less that I would pay for the first 1-2 years if I stayed with E.ON).

The arithmetic is clear enough but, as one would expect, nearly all of the 'attractive' (cheap) deals on offer are from (presumably 'small and young') suppliers that I have never heard of.

The arithmetic is clear enough, but I wonder how I should feel about "(presumably 'small and young') suppliers that I have never heard of". What are people's experiences? Is the 'service' (whatever that may be) provided by such suppliers satisfactory (and/or appreciably different from what one gets from 'the big 6')? What happens if a small supplier goes bust? What else should I be thinking about?

I have, by the way, attempted to 'negotiate' with E.ON, but I cannot find anyone capable of doing any more than read from the 'menus' that I can effectively see for myself!

Many thanks for any thoughts!

Kind Regards, John

The 'big 6' have high prices and low scores for customer service.

I left EDF and went to So energy -I did as much research as is available and checked out their company details and shareholders -be careful of companies registered abroad etc. online reviews one has to interpret them as best you can.

 

[JohnW2]

I regularly change supplier chasing the cheapest prices, which seem to always be the small new companies. People report terrible customer support with some companies, but Ive never had an issue where I have had to deal with customer services so far thankfully.

Many thanks.

As far as 'customer service' is concerned, in many decades, I've hardly ever had any real reason to have to deal with them, so I'm not sure that is much of a concern. Any electrical problems (other than a misbehaving/dead meter) would, presumably be the concern of the DNO - which will be the same regardless of who one's 'supplier' is.

Two previous suppliers I have been with went bust (prices really too good to be true!) but thats not caused any great problem and you don't loose any credit you have built up. All that happens is you sit tight until ofgem get your account moved to another supplier, then if you dont like the deals they offer you just switch again to someone else.

That's reassuring - since it was the most obvious cause of potential concern. Given that 'suppliers' actually have nothing really to do with 'supplying' electricity, I presume that the supply must continue, regardless of what happens to the 'supplier'!

I suspect that many of the deals would force a 'smart meter' onto me, and I have no problem with that. However, with the smart meter mess we currently have, do they change the meter every time one switches supplier (as I implied, I have zero experience of switching!)?

Be wary of some comparison sites as they dont always show you all deals available. The moneysaving expert comparison seems to be quite impartial.

I've so far looked at moneysavingexpert, moneysupermarket, Uswitch and energyhelpline. As I said, the all seem to be offering pretty similar, although there are clearly some differences.

The small suppliers all seem to charge you one month ahead, just something to bare in mind.

Yes, I've noticed that, but it is not really a concern for me.

As I said, probably the most attractive (long-term) deal I'm found so far (offered by energyhelpline) is the 3-year fixed-price deal from "Together Energy" (apparently born in 2016). Does anyone out there have any specific experience of this company?

Thanks again.

Kind Regards, John

 

[bernardgreen]

Most suppliers have a "retention department" whose purpose is to retain customers. They can offer lower tariffs to customers thinking of leaving.

Phone E.On and ask to be put through to Customer Retention. it might work.

 

[JohnW2]

Most suppliers have a "retention department" whose purpose is to retain customers. They can offer lower tariffs to customers thinking of leaving. Phone E.On and ask to be put through to Customer Retention. it might work.

That's what I assumed and, as I implied, that ('negotiation') is what I have been trying very hard to do.

However, I have yet to find anyone who really seems to understand what I am talking about, let alone is capable of putting me through to a relevant department. All they seem able to do is to recite to me the few (expensive) tariffs that I already know 'are available to me'! However, I haven't given up all hope of this approach eventually succeeding.

In passing, I certainly had a very successful 'negotiation' as regards LPG a year or so ago. By threatening to take my custom elsewhere, Calor offered me, for two years, a price of about half of what they were trying to charge me. That two years ends in December, so I suppose I will have to try the same thing again.

Kind Regards, John

 

[reds42]

I'm very careful and double check all the details I enter when switching supplier are correct along with any meter readings. The sytems suppliers use will be mostly, if not fully, automated and if I can avoid mistakes it reduces the chances of having to deal with customer support.

If the supplier goes bust your energy continues uniterupted. Ofgem then arrange another supplier to move you to, which may be more expensive, but your not tied in to them and you are free to move from them with no penalty.

 

[AndyPRK]

I don't think you can negotiate with energy suppliers. They have 3-4 available options, which usually change every month.

You are protected if you go with a small energy company (if they go bust), but its customer service that suffers.
I tried to ring a small one up, I was 1 hour on hold at which point they closed, so they hung up. At least the big companies answer the phone in a reasonable time.

 

[JohnW2]

The 'big 6' have high prices and low scores for customer service. .... I left EDF and went to So energy -I did as much research as is available and checked out their company details and shareholders -be careful of companies registered abroad etc. online reviews one has to interpret them as best you can.

Thanks.

As I've said, one supplier which has grabbed my interest is "Together Energy". They are registered in Scotland (incorporated in April 2016) and, although I'm not very good at reading company accounts, their accounts for their first full year of trading (to 31 August 2017) seems to show assets under £1m and a first-year loss of a similar magnitude. However, I'm not sure what one can really make of the first year performance (next accounts due in a couple of months) .

Their website ( click here ) certainly seems very upbeat ("it would, wouldn't it?"!), and it looks as if they have investments and/or loans from "BP Gas Marketing Ltd" (which appears to be a subsidary of BP plc) - which might be a positive point.

Kind Regards, John

 

[JohnW2]

I'm very careful and double check all the details I enter when switching supplier are correct along with any meter readings. The sytems suppliers use will be mostly, if not fully, automated and if I can avoid mistakes it reduces the chances of having to deal with customer support. ... If the supplier goes bust your energy continues uniterupted. Ofgem then arrange another supplier to move you to, which may be more expensive, but your not tied in to them and you are free to move from them with no penalty.

Thanks again.

Kind Regards, John

 

[JohnW2]

I don't think you can negotiate with energy suppliers. They have 3-4 available options, which usually change every month.

As I said, that's what I'm experiencing. Forgetting ones which are inappropriate (i.e. including 'boiler cover' or related th EV usage), they are effectively only offering me three tariffs (one variable cost, one fixed price for 1 year and one fixed for 2 years). Very strangely (to my mind), the cost of all three of those are essentially the same (and all 27-28% of what I'm currently paying) - the price of day and night units is identical for all three, the only difference being variation of a few pence per day in the Standing Charge!

You are protected if you go with a small energy company (if they go bust), but its customer service that suffers. I tried to ring a small one up, I was 1 hour on hold at which point they closed, so they hung up. At least the big companies answer the phone in a reasonable time.

As I've said, I'm not sure that 'customer service' is much of an issue, since I very rarely need it. Indeed, if my current experiences with E.ON (in terms of tariffs) is anything to go by, the 'customer service' could not be much worse than theirs - yes, they answer the phone, but they might just as well not do so

Kind Regards, John

 

[reds42]

My last company that went bust was 'one select' and it was 'together energy' who took on the accounts and branded it 'together select'.

Obviously ofgem thought 'together energy' were capable of taking on a big chunk of extra customers - that probably has some weight in showing they are an OK company to deal with.

I never had to deal with their customer support in person though.

 

[AndyPRK]

The regulator Of??? limits suppliers to a small number of current tariffs, I imagine trying to prevent people being on expensive legacy tariffs at extortionate prices. Well that is the idea

 

[JohnW2]

My last company that went bust was 'one select' and it was 'together energy' who took on the accounts and branded it 'together select'.

Interesting.

I forgot to mention that the 3-year fixed price from Together Energy I'm looking at is seemingly called "Brexit Protect"

Obviously ofgem thought 'together energy' were capable of taking on a big chunk of extra customers - that probably has some weight in showing they are an OK company to deal with. I never had to deal with their customer support in person though.

That's quite reassuring. The apparent financial involvement of BP also seems (at least, to me!) to probably be 'encouraging'!

Kind Regards, John

 

[AndyPRK]

The regulator wasn't doing a lot to verify whether the energy company was sound. Any new ones will now have financial checks performed