MSE News: Low energy users face steepest price hike from Scottish Power

Former_MSE_Helen · 20 June 2011 at 4:52PM

This is the discussion thread for the following MSE News Story:

"Low users face the largest percentage price jump when the increases come into force this August ..."

Read the full story:
Low energy users face steepest price hike from Scottish Power

michaels · 20 June 2011 at 5:16PM

The dual rate I thought was introduced so that 'no standing charge' tariffs could cover the admin costs without a standing charge. Thus increasing prices in this way looks more like profiteering than passing on increases in wholesale costs.

The cynic in me would say perhaps low users are less likely to shop around given that the absolute saving (in pounds and pence) from switching won't be so great.

telsco · 20 June 2011 at 5:23PM

Tariffs should be banned. They are deliberately made complicated to dissuade people from leaving their supplier.

Mine's already on a fixed rate for 2 more years, but I wouldn't have a clue if I did the right thing even with using the comparison sites.

cw18 · 20 June 2011 at 5:46PM

I have the two tariff rates due to not having a standing charge - if I use all the more expensive tier 1 units then I effectivley pay the standing charge, but if not then I make a saving. This has always benefited me on the gas side when I'm not using the heating (like now), but has never done so on the electricity (though I've been living in hope since my son moved out and took his energy hungry PC with him).

If the tier 1 prices are going up by a larger %age than the tier 2, then I'd also be expecting to see an increase in the standing charges.

If not I shall be bitterly disappointed with SP (for the first time in the 9 years I've been with them), as I've been working my socks off reducing my useage in order to keep the bills at a level I can afford

Widelats · 20 June 2011 at 5:51PM

I left scottish power and went to Ebico, very competitive for low users like me, suggest any low users do the same and if interested message me i will give you their details, i felt like i'd been freed, and i can pay how i like with no extras on top just coz i pay by cash. Everyone else wants a extra £5 if you pay by cash and have much bigger tariffs if you don't pay direct debits, this is not the situation with ebico.

split_second · 20 June 2011 at 5:58PM

really not surprised this is happening, we are low users on s.p prepay (we pay about £30 a month on each)

looking at edf or ebico cos it seems to be one rise after another at the moment

HalloweenJack · 20 June 2011 at 6:29PM

Been saying since day 1 when the prices were announced weeks ago - and the evidence was shown then, that low income / low user families are the ones to pay the scottish power price.

and the governments attitude? use your feet and move to another supplier -

how about real regulation of the industry!

Consumerist · 20 June 2011 at 7:44PM

HalloweenJack wrote: »

. . . how about real regulation of the industry!

. . . and they should start by putting a stop to the exit charges which make it expensive to vote with your feet.

cepheus · 20 June 2011 at 7:59PM

Having the initial units at the higher tariff hardly encourages customers to conserve energy!

cw18 · 20 June 2011 at 8:00PM

Consumerist wrote: »

. . . and they should start by putting a stop to the exit charges which make it expensive to vote with your feet.

To be fair, my understanding is that these are only payable if you're on a special (fixed or capped) price deal. If you only ever sign up to their 'standard' prices then you shouldn't ever be faced with them.

And you have exit fees if you terminate (almost) any contract within the minimum term, so I can't see how they're so wrong within the energy industry.

(And, just for the record, I'd be hit with them as I'm on a special deal)

Consumerist · 20 June 2011 at 8:08PM

cw18 wrote: »

To be fair, my understanding is that these are only payable if you're on a special (fixed or capped) price deal. . .

Point taken.

MSE News: Low energy users face steepest price hike from Scottish Power

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