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What would 'Variable' mean to you in terms of Variable Tariff ?

I'm on a  Standard Variable tariff with my energy supplier

I have a Variable Tariff to accept the ups and downs of energy prices

I just contacted my supplier to discuss tariffs and was told I could save 0.05p / unit by changing to their 'Dec 17' fixed rate tariff; this would save me about £3.00 a year

So, I said, "I'll stick with the Variable rate because if energy prices change it could turn out cheaper" (it's only 0.05p after all)

Their reply was "The variable tariff is our most expensive Tariff, it will never be cheaper than any of our other Tariffs"

So I said "So you are setting a floor to variability", to which I was correctly told "Variable means it can vary"

I can't find anything in the T&Cs that say their Variable rate is influenced by other rates.

But, am I being a pedant ?

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Don't agree with capping energy prices, but do agree with moving to new energy suppliers......easy to tell if you are being ripped off or not, all you need to know is the cost of the standing charge per day, and the cost per unit of gas and electricity before vat is charged.....nothing else you need to know.....sometimes the energy firms make it very confusing to find out these three easy figures you need to know to compare now much they are charging you......

Make this open and transparent and people will then be able to decide who to do business with..... simples....ofgem take note.;)

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Can't believe only 30% of people switch regularly. It takes 10mins on gocompare etc to work out what your best deal is and click switch.

As usual, the govt will inadvertently punish those with a bit of savvy to try and help the large chunk of people in this country who are mongs

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6 hours ago, choochoo said:

Can't believe only 30% of people switch regularly. It takes 10mins on gocompare etc to work out what your best deal is and click switch.

As usual, the govt will inadvertently punish those with a bit of savvy to try and help the large chunk of people in this country who are mongs

That's the wrong way to think of it.

The situation is that the energy companies can make a bit of cash by getting more money from people who don't want to switch (might be mongs, or might be people who are too busy to switch when they'd only be £10 better off, and they're too busy to go through the paperwork).

BUT -- everyone is worse off because they give quite a bit of cash to the price comparison services -- typically £50 for each switch.  In aggregate, everyone's energy bills are more expensive by about £10pa because of these websites.  Worse, it is the people who are migrating frequently (the 'savvy' ones) who are actually causing this expense; the 'mongs' are keeping average prices down by not causing this additional expense for the energy industry.  Oh, and if those 70% of mongs did change more frequently the price advantage of switching would reduce, but average prices would increase substantially as the energy bills would have to cover much more in switching fees to the price-comparison companies.

Frankly, we'd all be much better off if the whole energy tariff situation was simplified.  Oh, but we'd have a little less stupid entertaining adverts on the TV, and some advertising executives wouldn't get a new Aston this year.  Shame.

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10 hours ago, choochoo said:

Can't believe only 30% of people switch regularly. It takes 10mins on gocompare etc to work out what your best deal is and click switch.

As usual, the govt will inadvertently punish those with a bit of savvy to try and help the large chunk of people in this country who are mongs

Most of the better deals come with tie-in periods of 12-18 months. If you're renting on an AST that renews every six months that's quite a risk.

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16 hours ago, RentingForever said:

Most of the better deals come with tie-in periods of 12-18 months. If you're renting on an AST that renews every six months that's quite a risk.

I've just moved over from E.On to SSE onto a 3 year fix and there is a no penalty get out clause if you move to another property. No risk at all.

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