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Are 'sweeteners' taken into account when calculating switch benefits?

Last post Wed, Oct 19 2011, 12:35 PM by Scott Byrom. 7 replies.
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  •  Wed, Oct 19 2011, 12:35 PM

    Re: Are 'sweeteners' taken into account when calculating switch benefits?

    miserman - this is one of the biggest issues with the energy market in that there are so many different tariffs. Any one provider could offer +30 different energy tariffs which all have different unit prices (the amount you pay for each unit of energy you use).

    EDF Energy is another energy supplier and 'Fix For 2012' is their cheapest energy tariff which offers fixed unit prices until 31st Dec 2012. As with a mortgage product, you have "fixed" and "variable" deals in energy i.e. fixed remains at that level for a specific period of time and variable can move either up or down.

    You're certainly not alone in thinking this is all very confusing so don't worry. It may be best to give one of our team a call on 0845 345 1296 or if you email me your telephone number I will get one of them to call you today to discuss this in more detail.

    Regards,

    Scott
    • Post Points: 5
  •  Wed, Oct 19 2011, 12:26 PM

    Re: Are 'sweeteners' taken into account when calculating switch benefits?

    Scott wrote: Miserman - you're on one of Atlantic's most expensive energy tariffs i.e. their "standard". It would appear this could be your 8.5% discount being paid back to you which in that case would be included in our comparison as it's something you will receive each year.

    Scott I have to admit I'm confused by all this - no wonder the companies make so much money making it all so complex.

    If you say I'm on their most expensive tariff then what is their cheapest and why cannot I be on it?

    So do I understand that you are saying that if I switch I will save that £100 even though it appears to me I have been paid it as a gift?

    You wrote; "Additionally, you could make that saving moving to a "fixed" tariff which would give you further security next year e.g. EDF Fix For 2012 is fixed until 31st December 2012.

    I'm sorry I don't understand EDF Fix for 2012 - is EDF a company? Could you provide me a link?

    I really appreciate your help but I feel I'm joining the minions who think 'better the Devil you know' and fear switching because I might end up paying a lot more.....

    • Post Points: 20
  •  Wed, Oct 19 2011, 12:00 PM

    Re: Are 'sweeteners' taken into account when calculating switch benefits?

    Miserman - if you've factored the amount that will equate to each year and are happy to pay potentially a higher monthly amount up until that point then that's entirely your call. If you're happy and financially comfortable with this as it is then that's the main thing.

    Regards,

    Scott
    • Post Points: 20
  •  Wed, Oct 19 2011, 11:51 AM

    Re: Are 'sweeteners' taken into account when calculating switch benefits?

    Miserman - you're on one of Atlantic's most expensive energy tariffs i.e. their "standard". It would appear this could be your 8.5% discount being paid back to you which in that case would be included in our comparison as it's something you will receive each year.

    Atlantic is part of the Scottish & Southern Energy Group and they have recently confirmed that they won't increase their prices before August 2012 which gives you some comfort moving forwards.

    If you're happy with Atlantic and happy with the price you are paying then stay as you are. It all comes down to whether you value a £100 saving. Additionally, you could make that saving moving to a "fixed" tariff which would give you further security next year e.g. EDF Fix For 2012 is fixed until 31st December 2012.

    Entirely your call. You're already doing the right thing in looking it to it and checking the deal you're on. The next step is to weigh it all up and decide whether you want to switch or not!?

    Hope this helps.

    Scott
    • Post Points: 35
  •  Wed, Oct 19 2011, 11:51 AM

    Re: Are 'sweeteners' taken into account when calculating switch benefits?

    OK Scott.

    I have now spoken to Atlantic about these payments and they say they are a 'gift'

    They are called Atlantic Loyalty Rebate and I was assured that the same system of rebate equivalent to one month's direct debit, will be given to me in April 2012.

    I spoke to a Glen Clayden on Atlantic's number where his estension was 54893.

    He did say however that these payments are not on any comparison site because they are not offered to new customers.

    So it looks as if there would be no point in me switching. Do you agree?

    Many Thanks

    • Post Points: 20
  •  Wed, Oct 19 2011, 11:36 AM

    Re: Are 'sweeteners' taken into account when calculating switch benefits?

    Hi Scott

    I don't think they were simply paying back money because of the nature of their letters for both gas and electricity.

    The letters said: "Dear Mr x, We just wanted to say thank you. To reward you as a loyal Atlantic customer we're shortly arranging to pay £53 (this was from Atlantic's Electricity department) directly into your bank account. This reward is equivalent to one month's direct debit calculated by taking an avergae of your last 12 monthly payments.

    Yours sincerely, Lucy Wetherall, Customer Service."

    The same letter paying £62.50 into my account came from Atlantic's gas department.

    I'm unsure what you mean when you ask the name of my tariff.

    But my pricing plan is Domestic Standard On-Line, no fixed date for plan end, no cancellation fee.

    I agree that I have no guarantee that they'll do the same next year but I guess I could phone them and ask them.

    Maybe I'll do that....

    • Post Points: 20
  •  Wed, Oct 19 2011, 10:40 AM

    Re: Are 'sweeteners' taken into account when calculating switch benefits?

    Miserman,

    Are you sure these aren't just payments paying back any credit you had sat in your account?

    Do you pay by Direct Debit and if you check your previous bills does it say you were in credit or debit?

    It may well be that they are saying here is a payment but in actual fact they are simply paying you back your money.

    The other option is that they are discounts. These are included in all of our gas and electricity comparisons but any "sweeteners" or introductory offers are not as they are not guaranteed and may be "one offs" so could distort the results meaning the difference between making a saving or not.

    I think it's important we find out exactly what these payments are to ensure you can make the right decision now before we go in to the Winter months when you be looking to use +50% of your annual usage between Dec - Feb.

    Do you know the name of your tariff?

    Scott
    • Post Points: 20
  •  Tue, Oct 18 2011, 11:28 PM

    Are 'sweeteners' taken into account when calculating switch benefits?

    Hi I'm on dual energy with Atlantic and did your calculations procedure which found that I would save £97 a year by changing to First Something - names escapes me now.

    But on going through my bills from Atlantic I noticed I had received a letter in April 2011 from the eletricity department 'rewarding' me for being a loyal customer etc by paying £53 into my bank account.They also paid £62 into my account for being a good gas customer.

    So as you can see if they continue paying a similar amount annually as 'sweeteners' then switching and saving £97 wouldn't be worth it.

    What's your advice? And do you take these sweeteners into account with your calculations?

    Many thanks

    • Post Points: 20