We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Ofgem's Retail Market Review - Have Your Say
Former_MSE_Archna
Posts: 1,903 Forumite
What's this about?
Ofgem has just released the findings & proposals from its energy market review. The consultation is now open to reponses for the next eight weeks.
It's taking responses from individuals as well as from across the industry.
See the review
You can see the full report. Alternatively here are some key points from Ofgem's press release.
How to respond
Either email rmr@ofgem.gov.uk Alternatively post your thoughts below and we'll feedback to Ofgem.
[threadbanner] box [/threadbanner]
Ofgem has just released the findings & proposals from its energy market review. The consultation is now open to reponses for the next eight weeks.
It's taking responses from individuals as well as from across the industry.
See the review
You can see the full report. Alternatively here are some key points from Ofgem's press release.
- [FONT="]Ofgem proposes sweeping away complex and unfair pricing practices[/FONT]
- [FONT="]Big Six required to auction up to 20 per cent of their electricity generation output[/FONT]
- [FONT="]Firms risk facing a Competition Commission referral this year if they frustrate reforms[/FONT]
- [FONT="]Investigation launched into Scottish Power’s standard credit prices[/FONT]
- [FONT="]Ofgem to appoint independent accountants to improve accounting disclosures [/FONT]
- [FONT="]Ofgem to review whether energy companies are frustrating switching in the non-domestic market[/FONT]
How to respond
Either email rmr@ofgem.gov.uk Alternatively post your thoughts below and we'll feedback to Ofgem.
[threadbanner] box [/threadbanner]
0
Comments
-
I agree there must be more regulation.
This afternoon I was contacted by telephone by a supplier encouraging me to swap suppliers.
No mention at al was made that I did not have to have a dual energy deal.
The salesman then considered that my estimates of usage. I am new to the property, were too high and proceeded to give me estimated 'savings' with his company based upon his tariff AND his estimation on my reduced usage.
When I had agreed to switch and we were discussing monthly payments he then suggested that I upped my monthly payments, on both fuels, just in case the estimates were a little low!
There was no mention that I would have to clear arrears, if any, with my current supplier.
The question now is how much will I actually save?
There should be a straight comparison on on unit price to unit price throughout the year without the strange allocations of tiered tariffs up and down according to the seasons.
Thank god that at least there is the 14 day cooling off period so that at least I can sit down quietly with the figures, when they arrive, and make a clear, considered and accurate comparison. :mad:0 -
I find it unfair that the energy companies now tie you in to contracts on variable rate tariffs. You don't have the option of switching if your prices go up dramatically (more than others) unless you pay a fee to exit.0
-
Tarrif Complexity
I'm all for easier to compare tariff's, but surely having only 1 price for standard cash/cheque, one for monthly DD, one for prepayment will bump the prices up for those online customers who get cheaper prices for submitting reads online, getting online bills, etc. as the suppliers subsidise those customers who dont want the online deals!
Maybe have once DD price for offline and one for online, same for cash/cheque. We can still compare easily as you can see Xp for supplier A online vs. Yp for supplier B online.
Bix 6 to auction output
I assume this is to allow smaller suppliers emerge, but having experience with smaller suppliers they are more expensive and can sometimes be worse at customer services! If the Big 6 were to auction output they could control the prices the smaller suppliers pay, so that the Big 6 generate it, and sell it for more to the smaller supplier; pushing prices up for them so they wont be able to compete!
Just a thought...0 -
But that is not in any of Ofgem's proposals. All they are looking at is standardising the standard tariffs - they are doing nothing about the multiplicity of others.Tarrif Complexity
I'm all for easier to compare tariff's, but surely having only 1 price for standard cash/cheque, one for monthly DD, one for prepayment will bump the prices up for those online customers who get cheaper prices for submitting reads online, getting online bills, etc. as the suppliers subsidise those customers who dont want the online deals!
Maybe have once DD price for offline and one for online, same for cash/cheque. We can still compare easily as you can see Xp for supplier A online vs. Yp for supplier B online.
There is absolutely no reason why the online direct debit customers should receive so much cheaper bills than standard quarterly cash payers. They do not provide better cash flow or cheaper accounts than cash users who pay on time. I see nothing in any proposals where the burden of the cost of bad customers is shared amongst all customers or targeted at the miscreants themselves.0 -
There is absolutely no reason why the online direct debit customers should receive so much cheaper bills than standard quarterly cash payers. They do not provide better cash flow or cheaper accounts than cash users who pay on time. I see nothing in any proposals where the burden of the cost of bad customers is shared amongst all customers or targeted at the miscreants themselves.
Not sure I agree with that statement.
I accept that they might not be able justify the large differentials between credit customers paying quarterly and on-line direct debit customers; but the latter are surely cheaper to administer.
On-line tariffs incur no postage or paperwork, no need to cash cheques(if paying by cheque).
Also cash flow must be better with a monthly DD. A DD customer has made 2 payments in the quarter before the credit customer makes his payment. e.g. period 01 April to 01 July. A DD customer pays in April, May and June so the Utility company have that money 'in the bank. A quarterly customer pays(on time) on 01 July - even 14 days later is counted on time I believe.0 -
Also cash flow must be better with a monthly DD. A DD customer has made 2 payments in the quarter before the credit customer makes his payment. e.g. period 01 April to 01 July. A DD customer pays in April, May and June so the Utility company have that money 'in the bank. A quarterly customer pays(on time) on 01 July - even 14 days later is counted on time I believe.
We are not talking about start-ups boot-strapping their businesses in their first year. What difference does it make to an established business with reserves to receive one payment twelve times a year or three times that payment four times a year? The 14 days later is not relevant - the due date (including 14 days (or 28 days if using TNT
) remains constant and at three months apart.
In fact, the quarterly cash payer is more likely to be paying an accurate amount. What is more, when there is a catch-up, it will either be caught then and paid within a month or paid with the next quarterly bill and paid within three months. With direct debits they will be given a minimum of six months to pay it back.
Arithmetically I can not see any way a quarterly cash payment made on time hampers cash flow.
I have no problem with separate charges for statements or cheques.0 -
I'd like to see one change which would to some extent address all the following issues very effectively : -
1) reduce carbon emissions
2) help those with limited economic means
3) cope with increasing world shortage of energy
4) encourage insulation and thrift
and that is to give a worthwhile, compulsory discount (or set of tiered discounts) across all companies and tariffs to low energy use consumers. Ridiculously, currently, discounts are available to high energy use consumers, a practice which contradicts everything we are being told about responsible living.0 -
MartinWickham wrote: »1) reduce carbon emissions
2) help those with limited economic means
3) cope with increasing world shortage of energy
4) encourage insulation and thrift
Bad luck. All the indications are that the only solutions they are considering are all going to increase prices for the thrifty.
(And a lot of naive comments here seem to support them - many people dislike tiered tariffs without understanding the consequences of the alternatives and are looking forward to spiting their faces.)0 -
MartinWickham wrote: »I'd like to see one change which would to some extent address all the following issues very effectively : -
1) reduce carbon emissions
2) help those with limited economic means
3) cope with increasing world shortage of energy
4) encourage insulation and thrift
and that is to give a worthwhile, compulsory discount (or set of tiered discounts) across all companies and tariffs to low energy use consumers. Ridiculously, currently, discounts are available to high energy use consumers, a practice which contradicts everything we are being told about responsible living.
I agree. I'm tired of seeing my neighbours run around in their underwear all winter because they heat their house to ridiculous temperatures.
I propose a two-tier tariff such that the first X amount of energy that you consume is at a much lower rate. Then it goes up for those that want to use more.
I was also told by my supplier, that although I am on a low income due to ill-health, I couldn't have a discounted rate because I don't use enough gas/electricity. Priceless - penalised for being conscientious, as well as financially disadvantaged. :mad:0 -
I think it's scandalous that existing Customers aren't auto-switched to the cheapest tariff :mad:
For instance I'm with British Garse & despite uSwitch emailing me "British Gas plan 'WebSaver 11' is currently the cheapest energy", I bet I'll have to jump through hoops to get on this & it's just another thing on my To Do list (which they clearly prey/pray on) .. they're more than adept at pestering me to sign up to their boiler servicing plan I note :mad:
They also refused to credit me with Nectar points for already being on DirectDebit & paperless billing etc :mad:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.9K Banking & Borrowing
- 254.6K Reduce Debt & Boost Income
- 455.7K Spending & Discounts
- 247.7K Work, Benefits & Business
- 604.7K Mortgages, Homes & Bills
- 178.7K Life & Family
- 262.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards