now is a good time to compare supplier offers

2023-10-28 13:18:38

The launch of a group purchasing offer by UFC-Que Choisir at a competitive price compared to the regulated tariff should encourage electricity suppliers to revise their own offers downward.

Has the recent announcement from UFC Que-Choisir just signaled the start of the price war between electricity suppliers? A new operation to subscribe to electricity at a predictable and advantageous price was launched Thursday by the consumer defense association, a pioneer in the field but which has no longer offered such group purchases since 2021 and the explosion of prices. The new offer is limited to the first 120,000 subscribers who must register by November 15.

Morning debrief: Agreement of the 27 on energy – 10/18

Responsible for studies and lobbying within the UFC Que-Choisir, Antoine Autier confirms to us that the offer from Octopus Energy, heir to the company Plum taken over by the British group, offers KWh excluding tax 12.1% less expensive than the regulated sales tariff (TRV), i.e. around -10% all inclusive as indicated by the Energy Mediator on Thursday. The price is fixed over two years while the regulated rate, which has increased by 31% since 2021, is expected to increase once more in February, by a maximum of 10% as recently mentioned by the government. Added to this probable increase is the end of the electricity price shield.

“This means that if the regulated rate increases by 10% in February, the offer will offer a reduction of 22%”, indicated Friday morning Cédric Musso, director of political action of the UFC Que-Choisir on the set of BFMTV .

For a household with an average electricity consumption, around 10,000 KWh per year, the annual saving amounts to 266 euros including tax and can flirt with 400 euros for a household with higher electricity consumption, around 15,000 KWh per year. The last group purchase of gas and electricity attracted 120,000 customers in 2019, for an average annual saving of 154 euros.

“Protective” contractual conditions

To take advantage of this offer, you must go to the site “Quechoisirensemble.fr” where the individual can receive a quote in order to estimate their annual bill as well as the amount of savings achievable compared to the regulated electricity sales rate. . Corsica and the regions distributed by local establishments such as Strasbourg, Metz, Bordeaux or Grenoble, are not affected by the offer which goes from the basic contract up to a power of 36 kVa (kilovoltampere).

“It is open to all electricity subscribers who are served by the national distributor Enedis”, or 95% of the population according to Cédric Musso.

To establish this offer, UFC Que-Choisir contacted all electricity suppliers, including EDF, to whom it communicated its specifications, including criteria relating to financial guarantees for the consumer.

“We impose contractual conditions which are more protective than those traditionally proposed and you have the support of the UFC Que-Choisir federation in the event of a possible complaint,” explains the director of political action.

These suppliers then formulated their best price offer on supply to meet demand in excess of 100,000 customers. “We are systematically above 100,000 in group purchase offers so it is worth the cost for a supplier”, specifies Antoine Autier who recalls that the association has been carrying out these regularly for almost ten years, both on electricity and the gas. “This is a real subject for consumers, especially in a context of tensions over purchasing power.”

Increase in TRV and drop in wholesale prices

This decision to relaunch a group purchasing offer comes in a particular context. “We were waiting for the right moment in relation to the evolution of the regulated sales price and the wholesale market prices with the capacity of suppliers to transmit attractive offers, explains Antoine Autier. The TRV takes into account the prices over the two years elapsed therefore when prices on the markets were particularly high.) the release of the two years [de crise énergétique]suppliers are obliged to offer their best market offer.”

“A window is opening because market offers are set in relation to the current state of the market without taking into account the history over recent years,” confirms Nicolas Goldberg, partner at Colombus Consulting.

After the explosion in electricity prices in recent years which had encouraged certain individuals to return to TRV to benefit from its contractual security, wholesale prices have been trending downward for several months. “It is today possible to leave the regulated tariff to save money on the electricity bill, assures Cédric Musso. It should be remembered that changing supplier is free and possible at any time and if you leave the regulated tariff, you have the possibility of coming back.”

The resurgence of new offers will increase in the coming days

For Antoine Autier, the launch of the UFC Que-Choisir group purchase offer will probably increase the appearance of new offers, a phenomenon that has already been observed for several days.

“Certain suppliers will not want to lose customers and will therefore adapt their offers,” he anticipates. “The market trend is ‘as soon as one supplier moves, everyone follows’.”

While residential customers were reluctant to change electricity supplier for fear of the risk of power cuts and because the price difference was too low, particularly for a household heating with gas, they aspired to now to move towards other, more attractive offers made possible in particular by an improvement in supply conditions.

“In view of the prospect of an increase in the TRV, which largely depends on the wholesale market rather than the real cost of production, there is an interest in comparing the different offers with the numerous comparators”, insists the head of studies and lobbying from the Association.

If alternative suppliers have a card to play, the historic player EDF benefits from a good image which “always offers it a comparative advantage compared to competitors” according to Nicolas Goldberg. He mentions, among other things, the energy company’s Tempo offer, which allows you to save money by offering an attractive rate outside peak hours on days when the electricity network is most strained.

The consultant also underlines that the next market reform, through the establishment of “prudential rules” to supervise suppliers in the management of their customer portfolio, might lead to a sorting: only those capable of ensuring a full electricity supply over a relatively long period might remain on the market to avoid customers being penalized in the event of bankruptcy.

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