I have never experienced a penalty switching between e.on tariffs.
I am on the v.15 fix. I had no idea there were MSE / e.on deals available and will revisit in the new year when my V15 is near the end
Me neither, but this tariff isn't available from eon, only from the mse site.
The present mse deal is only available for another 11 days.
About 7%. While well ahead of expected inflation, that doesn't sound implausible considering some of the increases we've seen in the past few years, especially as wholesale prices are unusually low just now.
Come to think about it, that's the wrong answer (!)
To break even over the 3 years, the price would have to rise about 10% by the end of the first year, then remain stable.(As the 3 year deal is nearly 7% more than the best 1-year)
To break even over 3 years compared with our current deal, the gas price would have to more than double by the end of the 1-year deal.
The difference on switching is sufficiently large (~£850 pa) that the finer details could be considered trivial of course.
I'm surprised break even is only a 7% price rise, based on the 2/3 year deals offered by other companies.
You can get a fixed price cheaper deal for a year. If you go for a more expensive tariff on a 3 year deal you will be overpaying in the first year by probably 7% to 10%. That means to break even over two years the prices would have to rise by approx 14% to 20%. The third year is a gamble.
If however the prices fall because a mild winter and or cheaper oil prices with the 3 year deal you are locked in unless you pay the £60 penalty. Many of the current 1 to 1.5 year deals around are without an exit penalty. If prices fall you could change from an exit free deal in, say, 6 or 9 months and still lock your prices for a further year from that point.
Don't forget that with global warming you will not be using your central heating during our tropical winters.
I must be missing something here. To me, it only makes sense to compare the deals over their own time spans, so the question is which option gives the best outcome over 3 years and not 2. It seems pretty unlikely that prices will fall significantly from where they are now, but the question is by how much they will rise.
I was interested to hear on the radio this morning that if everyone switched to the best deal available, consumers overall would save £3.4bn. Of course, if that happened the suppliers would have to find a new way to keep themselves in champagne and caviar. The obvious solution would be to raise the prices of the deals people were switching to, in addition to any change in the wholesale price.
Quite right. Assuming that suppliers want to maintain their profits, then the more people sign up for a cheaper tariff, the more the deals offered will approach the standard rate.
Sadly, those of us on an advantageous rate are benefiting at the expense of those who haven't switched.
Chris
I'm surprised no one has mentioned VAT in this thread. The rate quoted on your bills excludes Vat which is then added at the end at 5%. However the prices in quotes normally includes VAT. I say normally but I have come across exceptions where a quote states the prices include VAT but when you look more closely at the details and sample bill Vat is added on at the bottom. I haven't determined whether this is incompetence or deceit. If anyone wants a supplier with zero standing charge then Ebico do that
- but note I am not saying they are cheap:-)
Several pence/unit above the cheapest out there normally but if your use is low (approx < 5 units/day) then overall they can be cheaper.
nPower also have a no standing charge tarrif, we have that and I have it described as "Standard Variable DD" 16.844p/unit against
9.923p/unit on the cheapest tarrif I can find (ExtraEnergy Bright Fixed Price Nov 16 v2).
The energy companies keep telling us that the price we pay is not the wholesale price on the day because they buy in advance. How much energy have they bought on the futures market at the current low prices?
By definition, not one single watt hour..
It won't happen though. Very few people pay any attention to it beyond a sharp intake of breath when the bill arrives or the DD goes up. (strangely the DD amount hardly ever goes down and they will borrow money off you for nothing if you don't keep an eye on the bills)
Which is why they make it as opaque as legally possible and by default switch consumers to the worst possible variable rate deal when a fixed term contract ends. If they were inclined to be fair they would show both the renewal default of doing nothing and their best offering.
To find out the best deal you have to phone or go online and give them a load of information that they have already got. As a matter of principle I invariably switch supplier even if the new one only price matches (unless the existing suppliers retention team cave in).
Same tactic works for mobile phone contracts too.
Mostly elderly grannies freezing in draughty houses who think that if they change supplier the electricity/gas might be switched off.
It is in essence a tax on the uninformed and internet have nots.
ALL of the old grannies I know have switched - and often more than once.
Even my 80 year old mother who once stayed loyal to banks and insurance companies for 30+ years has in the last decade switched banks and regularly insurance to get the best deal(s).
If you qualify ISTR they have no penalty on their pensioner tariffs in collaboration with Age concern. (You have to find them first)
It is slightly less user hostile than their standard offering. (age restrictions apply: 60+)
eon have confirmed that switching to the mse/eon tariff does not count as an exit, obviously switching isn't quite as straightforward as switching on eon's own website, but not exactly complicated either.
only available until 17th sept.
What is the actual tariff? It isn't shown unless you fill in all the comparison details. Does it vary by region?
Gas 2.859p per kWh Elec 9.450p per kWh all inc VAT.
Standing charges, duel fuel discount, direct debit discount, paperless discount same as eon v15 fix.
Exit charges £30 per fuel
Probably, it asks for postcode before searching, I'm in the EME/powergen/eon "historical" region.
In article , Martin Brown writes
Couldn't agree more. Try comparing tariffs without the internet. The energy companies won't give you their rates over the phone.
Wouldn't touch Age Uk with the proverbial barge pole. They are a business first and foremost generating money to pay themselves huge salaries.
Some comparison sites will do it over the phone.
You can also do it in many libraries.
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