Hi guys,

Haven't been on here for a while so forgive me for my absence.

Ultimately, the deal from Scottish Power is a gamble for those who wish to sign up to it simply because at a time of market change, this deal only guarantees to remain 1% below "standard" i.e. it could quite easily jump up to £1,377 on average (based on an average standard bill of £1,391) at any time. As the deal is guaranteed until Oct 2012, if this were to increase in price, customers would still need to pay a termination fee if they wished to move to a different tariff before the end date.

In terms of advice, my advice at the moment to friends, family and customers is to jump on a fixed deal such as EDF Energy 'Fixed Saver 2' or npower 'Go Fix 6'. Both of these tariffs freeze prices at a small premium to today's cheapest rates until Sept 2012 and July 2012 respectively - therefore giving you reassurance that your prices won't alter over the Winter months.

The only risk is the availability of these products. We've seen large numbers of customers signing up to these deals and as we know energy tariffs only have a certain amount of capacity meaning once they hit that limit they will be removed and/or replaced with more expensive deals (there is little or no chance of a cheaper +12month deal hitting the market anytime soon with prices jumping up by those seen by Scottish Power last week).

I know it's tempting to switch to the cheapest variable deal to maximise savings but those deals only need to increase by c.8% to move passed the average price of the best fixed deals. Therefore, in my personal opinion, one of the above "fixed" deal is the best option.

Hope this helps.

Regards,

Scott Byrom

Graeme Delap:

but as prices are certainly going up, that 1% discount doesn't seem that great - particularly if the energy providers decide to continue to increase their tariffs.

Indeed.

It would be great if your energy colleague could give some advice on an issue which I have previously raised with no definitive answer. It is central to "guaranteed discount" tariffs, typically 2%, sometimes 6%, now 1%! is "guaranteed", but generally there is an initial discount significantly greater, enough to place the tariff towards the top of any comparison. The whole point!

What I think consumers need to know, indeed I would like to know, does a subsequent increase on a "guaranteed discount tariff", which maintains the "guaranteed discount" within the guaranteed time period, entitle the consumer to envoke a "customer detriment" clause and cancel without penalty a tariff which has early termination charges?

This is quite complicated and I hope I get my question and concern over.

Hi Graeme,

Thank you for your reply, so if i am understanding this right disregarding the issue about going direct whatever tariff Scottish Power are offering unless its fixed i would be foolish to sign up with as they have announced their prices are going up in August.

Therefore the 1% discount on offer is nowhere near going to compensate for the 19% and 10% increases. As 2 Scottish Power deals where in the top three of my comparison results and neither fixed i should ignore.

Not sure if you are allowed to recommend but could i ask your opinion on the British Gas offer web saver 12, which has a min 6% discount and what is mean't by the 2 tier standard tariff?

Many thanks

Hi djon,

Frustratingly, some tariffs are only available direct from the supplier. In your case, the word 'Direct' after Scottish Power indicates this.

In terms of details, our site shows that the tariff gives a guaranteed discount which is: "Guaranteed 1% below standard until 30/9/2012 and is available only if you manage the account Online. Cancellation charges of £30.64 for electricity and £20.42 for gas may apply."

In terms of how competitive it is, some of our other forum members may be able to offer their help and opinion, but as prices are certainly going up, that 1% discount doesn't seem that great - particularly if the energy providers decide to continue to increase their tariffs. Indeed, Scottish Power announced it was increasing the average price of its domestic gas bill by 19% and the average price of its domestic electricity bill by 10% last week from August 1st - affecting 2.4m household across the UK.

If there are specific tariff details you're after, let me know and I'll be happy to find out for you.

I hope that helps.

Graeme
Community Editor
graeme.delap@moneysupermarket.com

I used the energy comparison on moneysupermarket, and the top supplier was Scottish Power direct. However your site does not allow me to click through or provide any other details in order to switch to this tariff?