Electricity Suppliers - advice?

[JohnW2]

On the dd front, I have never had a supplier change my dd, they have only ever suggested I ought to revise it.

Yes, I think that's always been true with E.ON - except, of course, when one changes tariff every year or two. Mind you, one has to be 'careful' with their website. If one goes to the 'manage my DD', it defaults to the DD amount they are currently 'suggesting' (which, more often than not, is too high). If one does not keep one's wits about one, it's quite easy to accidentally clinic on something that 'accepts' that suggested amount. Mind you, one can change onme's DD amount on-line at any time (from about -20% to +40% of the 'suggested' figure) - so one can always correct any mistakes one has made!

My costs also rises by around 25% with e.on, if I fail to switch before the end of my present contract with them. No surprise there - as said only fools fail to switch.

As for fools/mugs, as I recently wrote to JohnD, my staying with E.ON for years has not been without thought. Until this year, their prices have been quite reasonable and their annual increases quite small, so I have never bothered changing (although I have constantly 'looked' at the situation). However, the proposed increase this year is 10 times larger than in some previous years (and much larger than in any year I've experienced) - hence my 'enough is enough' approach this time!

Kind Regards, John

 

[Harry Bloomfield]

As for fools/mugs, as I recently wrote to JohnD, my staying with E.ON for years has not been without thought. Until this year, their prices have been quite reasonable and their annual increases quite small, so I have never bothered changing (although I have constantly 'looked' at the situation). However, the proposed increase this year is 10 times larger than in some previous years (and much larger than in any year I've experienced) - hence my 'enough is enough' approach this time!

Kind Regards, John

As said, I have swapped every year, at the end of the annual supply contract. I have not swapped for the sake of it, rather it has been to move to a cheaper option than the current supplier would move me to at the end of the contract. There has been no noticeable difference between the suppliers recommended dd and my own cost calculation. This year I went into surplus, because it has been a warm winter, so less gas and my electrical consumption has been reduced a little too.

As said before - Their site suggested I reduce my dd by 1/3 after I moved tariff and got well in credit.

 

[JohnW2]

As said, I have swapped every year, at the end of the annual supply contract. I have not swapped for the sake of it, rather it has been to move to a cheaper option than the current supplier would move me to at the end of the contract.

The nature of the market is such that it will nearly always be possible to find some cheaper alternative to staying with a current supplier - so yearly changes of supplier are what one will usually have to do if one wants to always be on the cheapest possible tariff.

However, as I've said, I would only change to achieve 'substantial' reductions in cost. This year has definitely been an exception for me and, as I've said before, if I were to cost all the time I've spent on this exercise over the past two or three weeks, I would undoubtedly be very much worse off than I would have been had I just accepted E.ONs 28% increase! However, it became a bit of a 'matter of principle' for me, which is the main reason I persisted!

Kind Regards, John

 

[Harry Bloomfield]

The nature of the market is such that it will nearly always be possible to find some cheaper alternative to staying with a current supplier - so yearly changes of supplier are what one will usually have to do if one wants to always be on the cheapest possible tariff.

However, as I've said, I would only change to achieve 'substantial' reductions in cost. This year has definitely been an exception for me and, as I've said before, if I were to cost all the time I've spent on this exercise over the past two or three weeks, I would undoubtedly be very much worse off than I would have been had I just accepted E.ONs 28% increase! However, it became a bit of a 'matter of principle' for me, which is the main reason I persisted!

Kind Regards, John

It is sometimes worthwhile and often just interesting to research something as you did. I certainly learned from your questions and the answers you have received. I certainly had no idea tariffs so very much, around the differing areas of the UK. The thread has been financially worthwhile to me, because it has prompted me to run a check and switch mid contract. Normally, I would just run a review once per year, a little over a month before my contract is due to end, I expend just a few minutes on it and one happy click the 'switch' button.

 

[JohnW2]

It is sometimes worthwhile and often just interesting to research something as you did. I certainly learned from your questions and the answers you have received.

Yes, same here. Had it not been for the 'interest' aspect, I probably would not have bothered - at least, not bothered to expend anything like as much time and effort.

I certainly had no idea tariffs so very much, around the differing areas of the UK.

Yes, that (or, at least, the extent of differences) is one of the things which surprised me most. A couple of other things which have surprised me ...

Firstly, that E.ON are charging exactly the same price per kWh for their current 'variable rate', '1-year fixed rate' and '2-year fixed rate' tariffs, the only differences being (small) differences in the daily Standing Charge.

Secondly, the ESB 2-year fixed-price tariff I'm switching to is slightly cheaper than their corresponding 1-year deal. I can but presume that this is an attempt to entice customers to stay with them for longer, but it's not something I've often seen with (m)any other suppliers - I certainly doubt that they are predicting that wholesale electricity prices are going to fall in a year's time!

The thread has been financially worthwhile to me, because it has prompted me to run a check and switch mid contract. Normally, I would just run a review once per year, a little over a month before my contract is due to end, I expend just a few minutes on it and one happy click the 'switch' button.

I think you've probably been pretty lucky. For any supplier, prices will generally increase over time, so it's pretty unlikely that you'll subsequently find a cheaper tariff than you already have. Only E.ON know why they made it worthwhile for you to do that switch!

Kind Regards, John

 

[ban-all-sheds]

To avoid wasting any further time, I've gone with ESB.

Nice beer.

Yep, and quite a marked difference. ... for me the difference (for one particular E.ON tariff) between 18.123 p/kWh for me (or for anyone anywhere near me) and 14.396 p/kWh for anyone north of ~Birmingham. It has been suggested that that's because I am 'in E.on territory', but I haven't a clue as to whether that is thae actual reason.

I'd like to suggest that that is egregiously scandalous, and a practice which needs to be exploded.

If not unlawful, it should be, and in the meantime companies which do that should be named and shamed.

I've got things going on in my life right now which limit my time to follow this up, but when that changes, follow it up I assuredly will.

It's outrageous.

 

[JohnW2]

I'd like to suggest that that is egregiously scandalous, and a practice which needs to be exploded. If not unlawful, it should be, and in the meantime companies which do that should be named and shamed. I've got things going on in my life right now which limit my time to follow this up, but when that changes, follow it up I assuredly will. It's outrageous.

Well, I personally don't feel as strongly as that - but I was very surprised/shocked. In fact, I don't think that, prior to discovering this, it had even occurred to me that prices would vary at all around the UK.

 

[ban-all-sheds]

I'd not be surprised, now, to learn that they vary according to what device you use to get quotes, with Apple users charged more.

 

[ban-all-sheds]

But anyway - kicking up a fuss is now off the agenda - one less thing to do...

https://www.uswitch.com/gas-electricity/guides/why-are-energy-rates-different-by-region/

https://www.simplyswitch.com/energy/guides/why-are-energy-prices-different-in-different-places/

https://www.ofgem.gov.uk/sites/defa...rges_final_master_version_23_october_2015.pdf (not read)

 

[Laurence Harvey]

I'd not be surprised, now, to learn that they vary according to what device you use to get quotes, with Apple users charged more.

...seems about right.

 

[SimonH2]

But anyway - kicking up a fuss is now off the agenda - one less thing to do...
https://www.uswitch.com/gas-electricity/guides/why-are-energy-rates-different-by-region/

Hmm, a little misleading in that it suggests the DNOs are free to set their prices. In fact they are more heavily regulated than that article suggests - with "set rates" for various activities. Essentially anything they do in maintaining or enhancing the network is governed either by pre-set cost allowances, or has to be individually justified for each project.
Certainly not a "spend what they want, add 50%, add that to the total charges - and only have to justify it if OfGem notice" sort of setup.

 

[JohnW2]

But anyway - kicking up a fuss is now off the agenda - one less thing to do...

Thanks.

There are three main reasons why energy prices fluctuate across the country, varying from region to region, and these are:

1. How much energy suppliers are able to sell to customers in that region
2. How much energy suppliers buy from the national grid in that region
3. How much the local energy distributors for the region charge suppliers for that energy

I'm a bit confused. Are we talking about electrons with ID cards, or what? I thought we had a National Grid, but the above seems to be talking as if electricity is being bought and sold 'locally'.

I suppose that, given that the transmission/distribution networks do not have zero impedance, any given user will get proportionately slightly more of their electricity from more local generation, but I somehow doubt that is the explanation.

There are certainly some apparent illogicalities ...

While supply and demand can be a factor it doesn't explain fully why, for example, in London where there is a larger population (and more people consuming energy) the price of electricity is more expensive than in the North of Scotland.

And as for ....

Which areas in the UK have the cheapest energy?
The North of Scotland and East Midlands have the lowest on average.

Given that, once upon a time, I got my electricity from the East Midlands Electricity Board, I presume that I am probably in the 'East Midlands' region (even though I don't think of myself as such), but the figures I recently posted seem to indicate that this region has much higher electricity prices than anywhere else I looked at (at least, for E.ON).

Kind Regards, John

 

[Laurence Harvey]

It is sometimes worthwhile and often just interesting to research something as you did. I certainly learned from your questions and the answers you have received. I certainly had no idea tariffs so very much, around the differing areas of the UK. The thread has been financially worthwhile to me, because it has prompted me to run a check and switch mid contract. Normally, I would just run a review once per year, a little over a month before my contract is due to end, I expend just a few minutes on it and one happy click the 'switch' button.

At times of rapidly increasing tariffs (the middle of last year for example) there is sometimes a judgement call needed as to the timing of your leap to a new fixed tariff.

Do you tough it out for the full 12 months of your existing ‘cheap’ tariff? ,... or do you ditch it early in favour of a new (albeit more expensive) 12 months fixed tariff?,...in the full knowledge that the longer you delay the more you’ll eventually pay for said 12-months energy.

It can be a dilemma.

 

[JohnW2]

Do you tough it out for the full 12 months of your existing ‘cheap’ tariff? ,... or do you ditch it early in favour of a new (albeit more expensive) 12 months fixed tariff?,...in the full knowledge that the longer you delay the more you’ll eventually pay for said 12-months energy. It can be a dilemma.

Indeed - that's usually going to be the decision/dilemma.

However, as I said to him, Harry seems to have been very lucky - since he seemingly managed to change, mid-contract, to a new tariff with his existing supplier that was actually cheaper than what he was currently paying., It was therefore a no-brainer for him, but not a situation that I would expect many people (and quite probably, never again for Harry!) to ever find themselves in!

Kind Regards, John

 

[Laurence Harvey]

Indeed - that's usually going to be the decision/dilemma.

However, as I said to him, Harry seems to have been very lucky - since he seemingly managed to change, mid-contract, to a new tariff with his existing supplier that was actually cheaper than what he was currently paying., It was therefore a no-brainer for him, but not a situation that I would expect many people (and quite probably, never again for Harry!) to ever find themselves in!

Kind Regards, John

True;....once you’ve mastered the intricacies of the energy comparison/switching game it really is a friend for life.

It’s the countless thousands of customers (many elderly and ‘vulnerable’) still languishing on SVT’s that I feel sorry for.