In article , alan_m
writes
On 24/02/2021 09:01, Jeff Layman wrote:

I appreciate the "small" suppliers usually offer the cheapest tariff,
but I was surprised when looking at the info on one website that
often, because of recent caps and reductions, the standard variable
may actually be cheaper than a lot of the fixed tariffs from the same
energy supplier.

This is often the case in a rising price market. The contract for 12
months fixed price factors in some of the expected price rises but with
some companies factoring in price increases before other companies
there is often a good pre-rise deals to be had.

The more competent supply companies take out long term wholesale
contracts.

I've just taken out another 12 month fixed contract which is around 7%
more expensive than I paid last year but because of the timing when I
committed to it is around 3% cheaper than what is available now, 1
month later. I expect that in April prices will again rise in line with
what has been agreed with energy regulator.


What tends to happen in the supply market is that start ups want to
attract customers and they do so by getting themselves to the top of the
price comparison charts with the cheapest rates. Then they are swamped
with new customers and their customer services can't cope.
Their wholesale supply contracts are then inadequate and their prices go
up but they are committed to supply contracts with their customers and
they go broke.
The moral of this story is to be wary of taking the top of the list on
comparison sites.
--
bert