Wednesday, 25 September 2013

Energy Prices and Dealing with "The Devil."

Those of you who've followed my disastrous dealings with Npower in recent years will be astonished to discover that I've just signed up "with the Devil" for their "Price Protector September 2016" contract.

As much as I dislike them, they do seem to offer the best deals for the future. Whether that proves to be the case after 3 years we'll have to see.



Ed Miliband and the Labour Party are offering electors the carrot of energy prices "frozen" for 20 months if they win the next election. The cartel of 6 energy providers are already squealing that investment will cease, lights will go off and they'll take their ball home and refuse to play with the nasty rough boys in the UK. Do we care?

Based on their ceaseless quest for profit, I suspect that energy providers would be complaining about anything which interfered with their idea of "market conditions." But, let's look at it logically.
If, Npower can offer consumers a "fixed price" contract lasting for 3 years - September 2013-September 2016. Why should the prospect of frozen prices for 20 months frighten the energy companies? Some faceless accountant has done the calculations and decided that the inflated initial price for the tariff will more than compensate Npower during the length of the contract as they've already "fixed" their prices with their gas and electric providers.

Here's the new tariff rates I'm paying, (Including VAT).

Electricity:  15.52P kW + Daily "standing charge" 7.60p

Gas:          3.7939 kW + Daily "standing charge" 40.425p

I've already complained about the introduction of standing charges. Many of us will pay more for more for our energy consumption, yet receive nothing in return. Because of the new standing charges I'm going to pay £175.29 each year, even if I don't turn on any electric or use any gas. In fairness to Npower many of their competitors have an even higher standing charge.

Based on my previous years figures for electricity (2305 kW) and gas (11043 kW) usage I'm anticipating that my energy bills for the next 3 years will be "fixed" at approximately £850 annually. Should Labour win the election in 2015, I might end up with an even longer contract.

What are you doing? Long term fixing, or short term "best deal". I'd be interested in any comments.





Icarus 
Twitter: (@solaricarus)

2 comments:

  1. 'What am I doing', you ask? Voting Labour in 2015, that's for sure. But I was going to do that anyway. Don't forget, it was so-called 'Red Ed' that brought in the FiT payments in April 2010 before this shower got into power. No doubt the Daily Fail will regard those payments as 'socialism' too.

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    1. Well, that's 2 votes for Labour in 2015, but like you, we'd have voted for them anyway.
      They just have to convince the rest of the electorate.

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