The Big Switch – the results are in!
After months of excitement, we can finally announce it – The Big Switch auction has finished! And the winner is Co-operative Energy! It’s delivered savings of around £123 per year. Great news, so what happens now?
There was a certain part of the office that I avoided on Wednesday – The Big Switch hub – the room where my colleagues who have been working tirelessly over the last few months gathered to negotiate with energy companies.
Tense, excited and armed with spreadsheets and calculations, they had just one key question – how low can you go?
The aim was to secure a market-leading energy deal – something that was cheaper than anything else on offer. I’m delighted to say that they succeeded, and Co-operative Energy bid a tariff that will cost the average household either £1,048 per year (if they pay by direct debit) or £1,144 per year (if they pay by cash or cheque).
As they’re a small company they can only take 30,000 customers, so all the extra people (and we think there’s around 200,000 who fully registered) will be offered the second-place deal, with EDF Energy. It’s slightly more expensive, at £6 more per year for the average household, but still very good value.
Ring in the changes
So what happens next? Well, we could sit around eating cake in celebration, or we could see if there are other areas where Which? can help. Our campaigns team is always on the look out for things we can to make things a bit easier for consumers. If you want to stay up to date with what we’re doing, join our Affordable Energy Campaign. You never know when the next ‘Big Switch moment’ might be around the corner!
Personally, I’m really interested to see what affect this will have on energy bills. Will other companies be feeling the pressure to lower their current prices? Will other organisations (such as ThePeoplesPower) get more great deals on their own collective switching initiatives? I hope the answer to both of these questions is ‘yes.’
But more than that I hope that this leads to some genuine, long term change. Although it’s a great result that we’ve managed to secure these savings for thousands of people, I think The Big Switch represents a more significant ‘cry for help’.
The power of numbers
When we launched I expected fifty, perhaps sixty thousand people to sign up. I was overwhelmed when we passed the hundred thousand mark and even more so when the final total was revealed – more than 270,000 people.
The sheer numbers achieved with this campaign are significant, and not just because these people are all switching but because they’re all standing together and saying ‘we’re not happy’. Not happy with soaring bills, not happy with complicated tariffs, not happy with a market that makes it really hard to find the best deal.
If I were an energy company (other than EDF or Co-operative, of course) I’d be shaking in my boots today. They might be able to pacify regulators or make small changes to appease the government, but when a large number of people take their custom away it shows there’s a real problem.
So what’s next? Do you think we’ll see more collective switching initiatives? Do you think energy companies will make longer term change? I certainly hope so.
[UPDATE 11 MAY 2PM] - Due to popular demand we’re publishing the details of the tariffs for ease of reference. Please note these are averages – your tailored savings estimate will provide the most relevant information to you based on your current energy tariff, usage and location. If you provided your energy details, you’ll receive an email from us in the upcoming days.
You’ll have until 28 May to decide whether to make the switch.
Co-op Variable Pioneer Tariff Co-op Fixed Pioneer Tariff EDF Blue+ Price Promise
Avg. Elec Std Chrg – 17.26p Avg. Elec Std Chrg – 17.26p Avg. Elec Std Chrg -14.70p
Avg. Elec Unit Rate – 11.99p Avg. Elec Unit Rate – 10.84p Avg. Elec Unit Rate – 11.99p
Avg. Gas Std Chrg – 17.26p Avg. Gas Std Chrg – 17.26p Avg. Gas Std Chrg – 23.10p
Avg. Gas Unit Rate – 3.77p Avg. Gas Unit Rate – 3.42p Avg. Gas Unit Rate – 3.62p
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Gerrysea
Some years ago we had duel fuel supplied by EDF at a time when their deal carried an assurance that their tariff would always be ‘X’ below other major suppliers. They (deliberately?) under-estimated monthly payments, so after a while I was informed that these would have to be increased in order to recoup the deficit. Needless to say, they continued to DD at this new rate until they were in fact carrying a surplus. As time went on they also increased their rates and decided that they could forget about ‘always be lower than others’ promise, to such an extent that I was able to make a respectable saving by returning to British Gas.
Contacting EDF was always a pain in the butt and when discussing payments and rates, staff always seemed evasive. I would not cherish the thought of getting back in to bed with them without some assurances.
Rosie
When we bought our last new house (and before people moved their suppliers) we were forced into going with EDF. Our experience was awful – they seemed to take whatever they fancied by direct debit (always more than there were supposed to), increased the amount without our consent, and totally messed up in many other ways too. We suffered huge bank charges as a result and EDF wouldn’t even respond to our complaint, let alone recompense us. We moved back to British Gas at the earliest opportunity!
We signed up for this switch offer and I’m hoping we’re offered Coop (who we also support generally in view of their ethics) as there’s no way we’d go back to EDF. I’d rather pay a bit more money with BG and get an excellent service (so far!) than pay less with EDF.
Terry, Blackpool
My wife and I are in our late 60s and currently have the EON Staywarm tariff which supposedly lets you use as much gas and electricity as you want. However go 1 kWh over the average usage figures for either energy and the price rockets. We currently pay £147.50 a month and keep consumption low to prevent another £40 a month rise in August. We signed up for the Big Switch hoping but not expecting to save money, however looking at the 2 tariffs today we could end up paying more for the same usage as now. I’ve found a tariff with NPower that should save us about £95 a year, this ends Sunday, so I’m signing up tonight. We can cancel within 2 weeks if the BIG SWITCH seems ok, but like others using this blog I’m quite disappointed, I was hoping it would start to bring the big suppliers to heel, some chance. Good luck to anyone who saves from the switch.
Rosie
I really admire you shopping around – I’m younger than you, don’t have the stamina to keep shopping around for every product or service we buy now, and I just don’t see why we all have to switch just to get a decent price. As I’ve said on another post relating to supermarket prices, why can’t we just go back to the days where we paid a fair price for a product – and got decent service too! All this switching around causes so much stress and I really feel for the elderly or disabled who can’t shop around (and dread what it might be like as I get older too …!).
Daniel
I don’t quite understand what the fuss is about. The Coop pioneer tariff was available to anyone through the web, as is the edf blue and price promise tariff. The Coop planned to bring in a fixed rate tariff in any case. Exactly how much has this process achieved?
Rosie
If the Coop haven’t improved their rates for this Big Switch exercise then that’s totally unacceptable!
IT Manager
Can anyone tell me whether this exercise has produced a tariff, that is cheaper than any individual can get on the curret open market ? If not, what is the point of the exercise. I thought the exercise would produce a tariff that was significantly cheaper.
William
Sadly due to the lack of any specific figures being provided (makes me wonder if Which? have actually been given any), we will still have to wait and see what we get in the letters they’re sending out next week
I’ve just looked at EDF’s website and can’t find any specific figures for their tariffs either so I’m having to go on what I got for the tariff I’m on in the annual statement they send me recently
Christ
Are the coop tariff rates shown inc vat or excluding vat?
Budgie
Does the tarrif include gas and electricity????
Ian
https://www.ebico.org.uk/blog/2012/05/11/done-badly-collective-switching-will-increase-fuel-poverty/
Andrew mccamley
Oh so disappointed! Utilities have managed to create so much complexity around cost where it really ought to be like buying nuts and bolts. A single unit price. It seems we are still stuck in the same old game now with you guys at Which a bit carried away with your own hype. 270000 consumers should be getting a unique bulk deal with those numbers. Where is it? We’ve also been split. What is the point of being offered per-existing tariffs? This does not appear to have achieved anything more than a rather laboured price- comparison exercise. Let’s be honest here; whatever the vision was at the project’s inception, there’s nothing new in the result…and Edf have fobbed us off with another pup. I am so disappointed.
Rosie
Hear, hear!!
Stephen Donnell
Disappointed to say the least. This process has delivered nothing new and offers NO discount whatsoever, What a waist of time and effort. These tariffs are available on individual websites now. Where is the discount promised?
Roger Hancocks
A bit disappointing ? Yes, but it was always going to be. The big energy company are trying to call the consumers bluff by offering pre-existing tariffs and they are relying on the usual inertia to change. The worse thing that could happen now is for those signed up to it saying ‘it’s not worth changing’. However if we do change tariff, for however small a saving, that sends a powerful messages to the energy companies to be competitive. They will see there is real business to be won and might take it more seriously. I urge Which to make this an annual event – its pointless otherwise.
William
I do have one question Which? might want to look into. Why do utilitiy companies have different standging charges for their own products. Surely its the same gas/electricty down the same pipes/cables, so why the difference in standing charge? Seems like its just another way to confuse/make money from the end user.
wavechange
I go further than William and would like to know why we have a standing charge. The standing charge has more of an effect on low users. If we are going to penalise anyone it should be high users. Scrap the standing charge as part of a move to make energy billing clearer and easier to understand.
William
Something else I’d like Which? to get involved with is making utility companies show exaclty what the price per unit/standing charge breakdown is for each tariff they offer. So far I’ve only managed to find a breakdown on EDFs blue tariff, and that was via goggle. Britsh Gas has a page for tariffs and then only shows avg usage costs. Even though its only 2 companies seems a rather worrying pattern that they don’t want consumers to know what they’re getting.
Gerrysea
Oh dear, the more that I am looking at this the less we appear to have achieved and the more I have to ask ‘what was the point of it all’, other than to line the pockets of ‘Which?’ with a commission from each switched customer?
I had my doubts when I heard that British Gas had pulled out of the (reverse) auction because they considered the commission being sought by ‘Which?’ to be excessive and it looks like they may have been right. It appears to me that negotiations by ‘Which?’ have brought about results no better than we, as individuals, could find by spending a little time on Google. No specially negotiated deal; just recommendations to use suppliers who have agreed to pay the requested commissions but at rates that are already readily available on line.
Going direct to Co-operative Energy for a quote tells me that they are “only £17.00 more per year than my current supplier”, British Gas. And EDF claim to offer me savings between £13.29 and £101.33, if they are to be believed, but I admit to feeling a bit ‘once bitten twice shy’ at the thought of dealing with them again (as explained earlier). However, just 10 minutes on Google found me a dual fuel offer from ‘first-utility.com’ offering me a saving of £140.00 that I don’t have to share with those nice people at ‘Which?’. So come on guys; how do you justify that commission being claimed by the ‘Which?’ negotiators?
It’s so hard to believe that when negotiating on behalf of more than a quarter million customers, this is the very best that could be achieved?
A missed opportunity, indeed!
Rosie
Which taking commission for this. Is that ethical or moral????!!!!
I’d rather 38degrees had continued the exercise on their own if Which is planning to take commission.
Very disappointed if it’s true re the commision, Which.
Billy
I was expecting one of the big companies to have moved in with a good deal, however it looks like they have sat back with arms folded without a care. I was with British Gas but have now switched to the Co-op. I have saved, but would have switched even if my annual outlay remained unchanged. This way, at least, I have been given the opportunity of sticking two fingers up at the big boys and taken £1000 + per annum away from them. Excellent campaign.
Terry, Blackpool
I agree with Gerrysea, I’ve just done a comparison through uSwitch and the saving for us is around £120 per year on our present consumption changing from Staywarm to “first-utility.com”. We’ll be having new loft insulation to the modern standard fitted this summer when I turn 70 so hope to save even more next winter. Give them a try, you never know.
Phillip
Oh dear! I was with First-Utility and couldn’t wait to leave them. Beware! While they will set up a direct debit, you pay for the gas/electricty actually used rather than a set monthly amount, so this can be expensive through the Winter. Also, they didn’t bill me correctly for months on end, and only after I finally managed to switch to another supplier did I get stung for additional usage while I was under contract with them for several months after the switch. Didn’t know whether they were billing me correctly or not, but had to pay.
I am a switcher. I regularly switch so have had experience of most of the utility companies. Safe to say First-Utility were much worse than any other supplier I have been with.
I am currently with Co-operative energy and am happy with their simple tarifs, customer service and price. Seems like a good place to be
b.martin
To Which staff.
A swift answer to the question raised, in reference the FIT scheme, by Pangit (5 may at 1.23pm) is required since this question needs a reply before some people will consider switching electricity supplier. Please answer by close on Monday.
JS
I am already with the CO-OP and I can’t see any difference between them and the rest. Joined after listening to them being interviewed on the R4 prior to launch, sounded like a breath of fresh air only to have the first bill delayed because of software problems! I would have thought that should have been up and running before the launch but no. Then you get a bill that is no clearer than the other suppliers and a website that continualy questions the meter readings you enter. E-maill them and you get business speak non answers as a reply. In short they talk a good talk but it is Guff. Just like previous experience with there banking arm. They are no better than the others and if it made any difference I would leave, but as there is nothing between any of them there is little to gain, and the price is not the final decider.
peter
wow i will be able to buy an extra cup of tea a week what a let down .
very dissapointing
JJH
Can it really be true that after all the hype from Which and a claim to have spent a staggering £570k in costs, that the best they can deliver is a tarrif that anyone could have found for themselves with 5 mins on the internet? I was expecting a tarrif that was genuinely lower than what I could obtain myself. Where is the benefit in a group buy or collective action when the only people benefitting are Which themselves who get a commission from each sale? If this turns out to be true it’s very disappointing and calls into question what exactly Which’s objectives have been here. Come on Which, we need some explanations.
Molly & John
We signed up with EDF January 2011 for dual fuel. We didn’t get a bill until September 2011 we were paying a fixed amount by direct debit so we were not too concerned. That carried on until the end of January 2012 when very large sums of money started it go out of our bank account. Over a couple of weeks in the February EDF took £540 follow ten days later by another £680. In total over the month they took £1600 which meant we went overdrawn at the bank. This amount exceeded our projected yearly spend by £400. The saga goes on and on we contacted the Energy Ombudsman who brokered a deal, a small amount of cah and a very curt apology plus a final bill. In the meantime we switched using Which? and signed up for the Big Switch. Our final bill came from EDF last week oh the shock! Despite having paid £1000 in direct debits over the preceding 12 months EDF wanted £1600 for the 2 months February and March 2012. I rang the Ombudsman who told me the original case had been closed and we would have to wait another 8 weeks before they could help. We have now had a revised bill from EDF which has been typed out in a very amateurish way by a Natalie White (Executive Liason) and is for £914.05. The figures on this missive do not line up as they would if it had been done in Excel but are all higgledy-piggledy so adding them up is extremely difficut. If we accept this bill we will end up paying EDF £700 excess Presumably this will go toward the chaimans bonus. We now have an appointment this Monday with a local solicitor to discuss suing EDF for harassment. Beware anyone thinking of signing up with EDF their ‘customer complaint dept.’ are very nasty people that is if you are prepared to wait the average 30 minutes it takes to get through to them. Mind you it is an 0800 number so it does not cost you anything (as they say if you complain) So Which? what good will the Big Switch be to me if I’m not one of the chosen few and face the prospect of going back to EDF? I would need to be certified if I did. On a happier note I’m now with British Gas and what a change has taken place within this organisation phones answered on the second ring, polite and helpful staff and No hard sell.
Doug
Thank you Molly & John.
At last, reality and a comprehensive report about the shockingly poor EDF Customer Service, something that we all suspected and had probably read about before, including in WHICH SURVEYS AND REPORTS, so why do the Consumers Association, who are supposedly championing Customer Service in all Company comparisons, choose one of the worst !!!
My own quote had EDF as the lower of the two, however I will be sticking to my current providers and have to say I’m very disappointed in the outcome.
Be Real
Which?, lots of people are obviously perplexed by the outcome of this exercise.
Most wanted a rate that was SIMPLE and VERY obviously CHEAPER. If you couldn’t achieve this (Which?, it looks like you haven’t) the exercise should have been abandoned, with an explanation that is wasn’t achievable, perhaps regulators and government would then have taken notice.
38Degrees should also have a view on this exercise, it is tarnishing your good work.
wavechange
I wonder if these companies will still offer the best tariffs in a year’s time. What would appeal most to me is a company that has a good track record of offering competitive prices even if others sometimes offer a better price. It may not be difficult to switch from one provider to another, but time is valuable.
Andy C
What a complete and utter let down ‘The Big Switch’ has proven to be. Despite hundreds of thousands of people registering their interest Which? haven’t succeeded in getting a single energy supplier to come up with a decent, new offering. Perhaps because all of the Energy Suppliers and their political mates are more than content with their own ‘Big Fix’.
I put off changing supplier and signing up for a new fixed tariff because Which? suggested that they could get me and other consumers a unique and money saving deal. They have failed completely and, as a Which? member for very many years I am bitterly disappointed with their handling of this issue.
The ‘wonderful’ pre-existing deals they have come up with are worse than I am currently on. I certainly won’t be using Which? to switch and providing them with £40 commission as a reward. Instead I will use the price comparison websites as I have always done and pocket that money myself.
The Which? ‘Big Switch’ has turned into the Which? ‘Big Let Down’. A truly shocking performance from Charity that is meant to protect the consumer and get them a good deal. The only people likely to be happy are the Energy Companies.
frugal ways
“The ‘wonderful’ pre-existing deals they have come up with are worse than I am currently on. I certainly won’t be using Which? to switch and providing them with £40 commission as a reward. Instead I will use the price comparison websites as I have always done and pocket that money myself”
To be fair to which? – their £40 commission per switch is the same/similar to all the price comparison websites, some websites get even more in commission.
38 degrees however, are (correct me if I’m wrong which?) only taking £2 commission per switch?
Where this idea falls down, and I believe people are starting to realise, is that very little of what the energy companies are doing, is for the benefit of the people. Most schemes are ways of generating more trade and increasing profits.
- Switching
It’s a false economy. Government, are under the illusion that it will increase competition, it will not.
Switching customers believe they are saving money, impossible to factor into their bills how much they are paying towards the energy company’s commission payments to switching websites, the big switch, etc, this is why bills are deliberately confusing (another which? campaign for an end to confusing bills doesn’t tally with energy companies passing on commission payments into customer bills!)
Add in exit fees, averaging of usage, etc, as customers we have no chance of verifying if energy company savings are accurate.
Commission payments to switching websites are passed back to the customer through all the bills of customers with that particular energy company.
While all this switching is going on, energy companies are also getting more of our information and pricing on demographics, again another reason for confusing bills.
Look at previous schemes.
Energy saving trust recommended that people with old G rated boilers should upgrade to A rated energy efficient boilers “could save up to £235 a year” – now they are backing away from this by saying that “large families that use lots of hot water, may be better off keeping their back boiler [even if it is a G rated boiler]”
They now claim savings of “up to £300 per year” for changing boiler to A rated from G rated, yet when I ask them where they get these figures, they do not answer.
The energy saving trust also refused to reveal how much the big energy companies and manufacturers within the industry were paying them in “membership fees” – now they have a charitable arm, these membership fees paid by the energy companies have become “donations” – again neither the EST nor the energy companies will reveal how much funding is being paid.
A clue comes from the fact that they are half paid for by taxpayers and half by the industry, so we are talking millions.
The average price of a new boiler fitting is now said to be around £2300 by the EST, it used to be around the £1200 mark – thanks to the boiler scrappage scheme, set up by previous government.
Then we have “free” insulation for the low paid and vulnerable, which under the ECO (Energy company obligation) allows the energy companies to charge this back via customers, which creates a floor limit for insulation prices and costs every household more money in higher prices for both products and fitting.
This is not “free” at all. It is designed to generate more business within the industry.
Sorry for the long winded post, but until the energy companies are held to account by a regulator that doesn’t have one hand tied behind it’s back (operating under Hampton principles) then rip off britain on energy prices will continue for everyone.
The only people not concerned are those making enough money to not notice their food cupboard is running low because they dared to have the heating on over the winter months.
End standing charges, replace it with a household cost for transporting the energy which could be checked against the DECC official website figures for the grid costs in any particular area?
Reverse the ludicrous position where people using less energy pay higher prices per unit
Energy companies should have one price for customers one price for businesses
Stop all commission payments for switching
Stop all exit fees – which are unenforceable penalty charges
Set a maximum per household profit limit – they want more profits then they can lower prices and sign up more customers to be drive more profits
Any “energy saving measures” advertised, should be banned from quoting savings in money and be forced to quote by number of metered units (I use 30,000 units of gas per year, this measure will “save you at least 800 units of gas per year” – this way I have a figure I can monitor)
Just some of my ideas that could help customers understanding and reduce the scope for confusing bills?
There are reasons why energy companies are evasive, they don’t want the public to know what’s going on!
Roger
So all but 30,000 Which? members are going to be offered a switch to EDF.
Would this be the same EDF that were ranked 13th (of 14 energy suppliers included for England, Scotland & Wales) in the Which? 2012 Customer Satisfaction Survey, scoring only 43%.
It would clearly be a massive own goal for Which? if, after all the hype surrounding the Big Switch, EDF become the main beneficiary of the process, gaining over 200,000 new members when they are rated so poorly by existing customers.
Surely Which? are not going gamble with their credibility by ignoring the results of their own survey and recommend this company to members?!
See:
http://www.which.co.uk/switch/energy-suppliers/energy-companies-rated
William
I’ve just used Which Switch and EDFs Blue tariff comes out top of the list on my usage. (The Co-op tariffs featured here aren’t all available to the public). However, the EDF Blue is £25 a year more than I’m currently paying, which is a different no longer available EDF tariff. Been with them years and touch wood never had a problem. I suggest anyone wanting to see for themselves give it a go http://www.which.co.uk/switch . Having an annual statement helps.
David Edwards
I changed to Utility Warehouse from British Gas, but although UW’s charges have seemed reasonable their accounting has assumed impossible usage increases and proved a nightmare to correct. They don’t do insulation. I’ve come in at the end of all the Which? research. It seems, Coop electricity is/will be the cheapest but I can’t use them as they are at full capacity. I would like to use the Coop as I sometimes shop there and am a member (extra points). I also know they recently did local ads for free insulation – which I need. Do they have a short list for new users or if I go to EDF can I get a similar insulation deal.
paul Langdon
I would agree that this is a tad disappointing. Bt it is a nudge and the Co-Op element sounds good. I would think we should look at bringing a political grouping or staff organisation/large employer (NHS/Teachers/TU?) on board and have another go.
I would like to see a deal at X % below the mean average price but it seem so difficult to calculate althoughthe regulators may publish or know? this might have to have a floor otherwise the larger companies could drive a smaller one offerring a good price out of business.
I see this as a start not an end.
Mike T
I am very disappointed by the outcomes of the Big Switch, but not really surprised, since it confirms the over-riding power of the Big Six energy providers who operate a cartel, compared to the joint weak overseeing powers of Offgen and Which?
As a long-standing (>30yrs) subscriber to Which? I was relishing the opportunity and promise of the Big Switch project, particularly in the light of protracted problems during my previous tariff change within EDF at end-March 2011 to their fixed price 2012 tariff. Eventually, after an extended Offgen investigation, I was awarded a compensation by EDF (£50) some seven months into the tariff.
That latter tariff ended at end-March 2012 by when I had registered for the Big Switch and my EDF utilities reverted to the standard tariffs. I monitor energy usage and total costs on a basic database which shows that during interim weeks to the current date my weekly total energy costs have increased by >£11 /wk.
In the light of the Big Switch outcomes, and past experience of EDF I want to move to the Co-op option but with a cap on the first 30000 changers, I trust that Which? will initially:-
1. ensure that switchers to Co-op are Which? subscribers.
2. seriously consider whether the project justified the set-up costs.
3. seriously consider the potential success (to Which? and its customers) of any subsequent initiative it may consider for the future.
Helen
Am now quite disappointed after waiting so long to switch my tariff with EDF which came to an end on 31 March. Unlike many others I have been more than happy with EDF after switching many times before, I have remained with them as their customer service has always been really good! Yes really! And when they have wanted to charge me more per month dd than I think they should, they have always agreed to my amendment. Always polite and courteous is my experience! The only gripe I have had is with their cavity wall installers – the firm they used were really really bad at what they did – but thats another story!
Not sure what to do next but like others will do my own comparison first and see if worthwhile switching. And I will avoid the companies I have used before – including BG – whose customer service was some years ago terrible – inaccurate billing problems and then being ignored both by phone and by letter and only took note when trading standards and the DD was cancelled at the bank! Believe me sometimes you are better staying with the one you are with then changing just to save a few quid – good service is worth paying for!!
Jim
I am also very disappointed! The Co-op tariff is £204 per year higher than my current E.ON tariff which lasts until the end of August so I won’t be taking up the Which offer and will continue to use comparision sites when rates change.
Nikki Whiteman
Hi all,
Sorry it’s taken a while to reply – one of the perils of weekends, I’m afraid. I’m going to try and deal with all the queries that have come up, so please do have a look and see if your question’s answered here. Apologies for the long post.
- Why can only 30,000 get the Co-op deal?
I understand that a lot of you are disappointed that not everyone will be able to switch to Co-op. It’s not practical to switch such a large number of people to a small supplier – in fact Co-op’s customer base is set to double as a result of The Big Switch. We didn’t want to exclude small suppliers from the auction (that would be against one of our key aims of making the market more competitive!) so we did have to be realistic about how many people each one could take. It’ll be first-come first-served, so if you want to go with Co-op rather than EDF I’d recommend responding to the email as soon as it arrives.
- How did we work out the winner?
Because people had told us that cost was their key concern with energy, we were looking for the cheapest deal. The Co-op deal was, on the day of the auction, the cheapest tariff for the largest group of people who had signed up. We worked this out using the information that people had provided to us about their current tariff, usage, etc.
Some people have pointed out that there is a First Utility tariff that was cheaper than that offered by Co-op. Unfortunately, the First Utility iSave v9 variable tariff is not at a fixed rate. This means that, had that tariff won the Big Switch, those who switched to it could have been worse off if energy prices had risen. We wanted to avoid this, which is why we stipulated that any tariffs entering The Big Switch should be fixed for at least a year.
- Is The Big Switch deal really the cheapest?
If you think that your current tariff (or another tariff you’ve found) is cheaper then the best thing to do is wait until you get the tailored email – it should come through to you this week. It will contain a savings estimate that is as accurate as possible given all the info you’ve given us, and will let you know if the tariff we’ve secured isn’t the cheapest for you. This is all based on the tariffs that existed on the day of the Big Switch auction.
However, please do bear in mind that although we are committed to telling you if it’s not cheaper (some people may be on cheap fixed tariffs from a long time ago) it will still save lots of people money. As I said in the Convo – we’ve done the calculations and there’s around £25 million of savings up for grabs. We’ve calculated that 200,000 people *will* be able to save by switching to this tariff – an average of £123 per person – this will make a real difference to lots of people.
- EDF has a poor satisfaction score
As I said above, The Big Switch has always been about price – you can always see our customer satisfaction scores on http://www.which.co.uk/switch so that you can make an informed decision. People will be deciding this week whether they want to switch, and we’ve always been clear that no one will be obliged to switch to a certain company once they have signed up – it’s always their choice.
- Can I get more detail on the tariff?
Yes, all the figures will be published on Which? Big Switch website as soon as we can get them up. However, bear in mind that it can be extremely complicated to work out – there are 98 different prices per tariff (prices depend on where you are, etc) which is why we’ve used the average figures to give people an indication. The best way to find out is to wait for the tailored savings email that will come through to you this week if you’ve signed up.
If you didn’t get the chance to sign up to The Big Switch, or want to have a look at how things stand now, you can check your cheapest tariff on http://www.which.co.uk/switch
- How much has Which? made in commission?
We honestly don’t know, and won’t know until the final switching has taken place. But, as ever, we’ll let you know and will be completely transparent about whether we’ve managed to cover our costs.
- Why does the tariff include standing charges?
All energy tariffs include some form of charge for, for example, distribution costs, etc. Some companies choose to add this as a daily or monthly ‘standing charge’, whereas other companies will include these costs by making their first units more expensive – meaning that the more units you use the less you’ll pay per unit. This can be confusing for customers, and is one of the reasons why we’re trying to tackle tariffs, to make sure that the standing charges only include essential costs, and that they’re presented to consumers in a clear way. Find out how we’re campaigning on it, and what we’re calling for, here: http://www.which.co.uk/campaigns/energy-and-environment/tackle-tariffs/why-were-tackling-tariffs/
On a final note (and sorry again that this is so long – just want to make sure I’ve touched on everything!), I want to reiterate that this is the first time this has ever been done in the UK – that we’ve managed to get a new tariff (Co-op’s did not exist before The Big Switch) is a huge step forward. I know some of you are disappointed in the result, but a potential £25m is a substantial saving. To those such as Roger Hancocks who are asking if this will be an annual event – it is possible – as I said in the Convo one of the key things coming out of The Big Switch is to see what the energy companies do in response and whether we can use the sheer volume of people as leverage to show that everyone’s looking for a more competitive deal. There are tens of thousands of people here who can save money by voting with their feet, and if they do it will send a strong message to energy companies.
Mike T
Nikki,
I suspect that your extended comments probably raise even more questions than they have attempted to answer.
Evidently, the Big Switch team grossly underestimated the level of disatisfaction “out there” on the dismissive cartel attitude of the big six energy providers, but that shouldn’t really have come as a surprise to the Consumer Association.
As a long-term subscriber to Which? (30yrs) I am particularly disappointed that there appears to be no preferential treatment or prioritising and loyalty for Which? subscribers, particularly in the light of the 9:1 over-subscription for the reported lowest tariffs of Co-op.
Clearly, success or failure for individual switchers will depend on the speed of their response to follow-up the long-awaited e-mails that apparently contain analysis of cost comparisons and a reference No to be used when making the switch on the Which? website.
BUT – Those e-mails were promised for Monday (comment Monday am. by Andy of the team) then during Tuesday (comment by Rasheed of the team – Tuesday morning) then for “some-time tomorrow” (comment by Amy of the team on Tuesday pm).
I trust that there will be a serious and detailed full review and analysis by Consumer Association of the costs, prior-claims, logistics and outcomes of the Big Switch exercise BEFORE they consider a repeat execise on energy or consider a similar exercise for another initiative (eg phone and broadband bundles).
Regards,
Mr Frisbee
Nikki,
Your response sort of avoids the main issue that most people are disappointed about. The rate you have “negotiated” is NOT a special rate for the group of Big Switch members to sign up to – it is a generally available tariff even if Co-ops did not exist until you went to them – the fact is the group buy idea has been a bit of a let-down. As most Which? customers are price savvy and willing to get off their own backsides and search/switch they are going to underwhelmed by your conclusions.
This is the point you have to address. Bottom line, the energy companies have got away with saying get stuffed, here is the price list of available tariffs, take whichever you want.
Perhaps there is more of a monopoly angle here somewhere – I don’t know, but I do know that at least half your 200,000 or so sign ups are likely to be very disappointed with this and the other 100,000 are probably too lazy to know/care/read the info available about this.
I am off to renew my existing EDF contract for their Blue tariff which I could have done three months ago rather than waiting for this Big Switch which has ended up being a Big Swizz!
William
Mr Frisbee, I’m glad to see that at least one person will make savings with EDFs Blue tariff, it was worse for me.
Nikki Whiteman
Hi Mr Frisbee – the Co-op fixed tariff for Direct Debit customers is a brand new one – it didn’t exist before The Big Switch. We’re pleased that we’ve managed to secure this new deal, at lower prices, which will benefit thousands of people. But the cheapest tariff varies depending on region, meter type and usage, which is why we’re providing personalised savings estimates. The Big Switch could help more than 200,000 people to save money on their bills – on average saving of £123 or around 10% of their energy bill.
Phil
Which? promised to use collective bargaining to achieve a “market leading” deal. It seems to me that this deal is far from being a market leader and for all the power of collective bargaining is only available to 15% of those that participated. The remainder are to be fobbed off with an even worse deal with a provider that came second from bottom in a recent Which? survey.
Hardly a satisfactory outcome however you try to dress it up.
Gerrysea
With apologies to the team @ 38Degrees but it appears that our auction was hijacked by ‘Which?’ simply to collect details of some 270,000 potential additional customers? Am I being too cynical?
I have now received my “Big Switch Quote” and after updating my details I have the following message:
“Based on the information you provided on your current energy usage and tariff preferences, we are pleased to offer you a cheaper deal through The Big Switch.”
Important information
1. Savings are based on Dual Fuel Standard meter tariffs.
2. We’ve found a tariff in the current market that will give you a greater saving than the Auction winner, which is also shown.
This is followed by their suggested alternative quote that is exactly the same as I the one that I have already obtained via ‘uSwitch’ and is in fact £115.00 cheaper than the “Auction Winner”, Cooperative Energy?
I will be switching but I’ll not be using ‘Which?’ to switch, they’ve done absolutely nothing to earn their commission. They’ve simply used the 38Degree team and the ‘Big Switch’ campaign, to ‘harvest’ an enormous bank of potential customers, all ripe to switch, wound up ready to do so and now they wait to start collecting their commission per switched customer, reportedly £40.00 per switch!!
Instead I’ve used Money Saving Expert, “http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity”, and followed Martins advice. I’m using ‘uSwitch’ and as well as saving almost £250.00 per year, I’m also exchanging the £40.00 commissions that ‘Which?’ would have liked to collect, for the case of wine that uSwitch are promising to send to me for switching via them.
My advice: USE ANYONE BUT ‘WHICH?’ TO SWITCH! Put them on the receiving end of the collective action that they appear to have tried to usurp.
William
Gerrysea, Before signing up via a switching site, check out the company/tariff you’ve selected via a cashback site. Every penny helps.
Gerrysea
PS. By the way, Witch? are now saying “This is a limited offer for the first 20000 customers only.” in relation to the Cooperative Energy offer!
Nikki Whiteman
Hi Gerrysea – it’s because of the two different tariffs offered by Co-op here. Some people preferred to pay by cash or cheque rather than direct debit. They’re taking 30,000 new customers in total – 20,000 on the direct debit tariff and 10,000 on the cash and cheque tariff.
Gerrysea
Hi Nikki,
Thanks for clarification on that point.
Gerrysea
Quote; Niki Whiteman: “Some people have pointed out that there is a First Utility tariff that was cheaper than that offered by Co-op. Unfortunately, the First Utility iSave v9 variable tariff is not at a fixed rate. This means that, had that tariff won the Big Switch, those who switched to it could have been worse off if energy prices had risen. We wanted to avoid this, which is why we stipulated that any tariffs entering The Big Switch should be fixed for at least a year.”
First Utility, like all other providers, offer a number of tariffs. The ‘First Utility’ quotes that I have previously referred to have all been fixed until September 2013, as is the “iSave Fixed v2 Sepember 2013″ (That’s 30 SEPTEMBER 2013, which is 16 months) which i have switched to with a saving of £247.00 over British Gas (my former supplier) most competitive rate, and is £115.00 less than that offered by the ‘Auction’ Winner.
There is also an nPower fixed tariff (to August 2013) available showing an improved saving (£30.00) over the Coop, being pushed by ‘Which?’
Sorry but it just don’t stack up! Does it?
FrankMill
Totally underwhelmed. I can save £29 by switching to the Co-op tariff. In a few months I can probably save another £15 by switching to something else. When the heck will Which? understand that this sort of saving is TRIVIAL?! You multiple individual savings of a few pounds by lots of individuals and end up with large numbers which you publicize to suggest you do wonders for consumers.
You’re literally right but sadly for each of us in the arena we have better things to do. Saving £29 is less than one week’s lunch sandwiches. For goodness’ sake get a grip on reality consumers’ assocn, or you’re just going to revert to the days when you attracted only people dumb enough to think that by signing up for 3 months’ free copies of Which? they were going somehow to win a massive competition and improve their lives. Please concentrate on things where you make a REAL difference.
Budgie
Here here FrankMill !!
My dual fuel / direct debit annual cost for the last 12 months was forecast to be £1,800 this year when I switched to Scottish Power from Atlantic. It has actually has come in at approx £2,350 ostensibly due to unforeseen increases in the tarrif just 2 months after I switched (sic)
Further, on the anniversary of my taking up this top deal (sic) Scotish Power bumped me onto their standard direct debit tarrif to take even more money from me.
This is the magnitude of cost increase and the absolute costs we are having to bear year on year. This together with the anti-competitive behaviours seemingly ingrained within the UK’s regulated markets which we UK consumers are becoming unbearble. Savings of £29 do not cut the mustard. I would have thought that the 200,000 folks who signed up to The Big Switch were on the whole savvy purchasers, able to help themselves but looking for something more.
Offgen, the British Government and consumers generally must rise up and do something to put a stop to this. Hopefull Which and 38 Degrees will come to the party.
Tony
I am very, very disappointed with this whole process. Like others i have waited and witheld from switching supplier, hoping that a good deal would be coming. The utility companies have stuck their two fingers up and offered no real extra discounts to which?.
As per the previous post i can also have a cheaper deal, fixed for 16month – - and also get £30.00 cashback to switch !!
“After months of excitement, we can finally announce it – The Big Switch auction has finished!”
“Great news” — I dont think so.
Alan Beales
Waited with anticipation for so long only to hear that I could save £11 per year.
Plus it was a monthly payment scheme which i didnt want
dlorde
Meh – so much for huge savings.
The BigSwitch is offering me fixed tariffs with Scottish Power or Co-op that are only £3 cheaper than the one I just moved to (Sainsbury’s Energy), but which have a £51 or £30 cancellation charge respectively.
The Sainsbury’s Energy fixed tariff has no cancellation fee, so, given the uncertainties in the energy market over the next year, it seems to be the better choice. I’m staying where I am.
Nikki Whiteman
Hi all, to address some of your concerns about savings – there will be some people who can only save small amounts because they’re already on good value tariffs. But it’s not like that for everyone, more than half of the people who signed up are not on online direct debit deals (the cheapest ones) and around 30,000 of the people who joined are on the worst value tariffs on the market and could save more than £200.
I’m sorry that some of you are disappointed with your savings, but that’s one of the reasons why we felt it was so important to give everyone personalised savings estimates, so everyone can make an informed choice about switching.