MSE News: Ofgem plans energy overhaul & probes Scottish Power

Former_MSE_Guy · 22 June 2011 at 10:25AM

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

"The regulator wants more competition and fewer tariffs to keep prices down and encourage switching ..."

Read the full story:
Ofgem plans energy overhaul & probes Scottish Power

HalloweenJack · 22 June 2011 at 10:26AM

ofgem is toothless - so what will actually achieve?

send them to the competition commision - at least they ahve a little more ability to do something.

missterryshopper · 22 June 2011 at 10:33AM

"Consumer Focus said it welcomed Ofgem's announcement and added that the utilities market needed to change.
The body's chief executive, Mike O'Connor, said: "The fact that Scottish Power was trying to push a dubious product to cover for their price rise shows just how far the penny needs to drop.
"Energy suppliers have been in denial about their poor reputation, about the health of the market and about the scale of changes needed to put it right. This market needs to change.
"Ofgem has taken another step today and we welcome it." "

http://www.bbc.co.uk/news/uk-scotland-13872184

Tetisheri1975 · 22 June 2011 at 11:08AM

In my opinion, the energy companies should be looking to reduce their reliance on foreign imports and having to the use the 'but global oil prices have gone up...' excuse, and try to increase their usage of/start using more domestic, renewable supplies. As soon as my 12-month contract is up with Scottish Power, I'll be looking to change, possibly to a much greener supplier such as Good Energy or Ecotricity.

Consumerist · 22 June 2011 at 11:28AM

"Companies that fail to play it straight with consumers need to understand that they risk facing enforcement action."

I bet the energy companies are wetting themselves with laughter on this comment from ofgem.

Tetisheri1975 · 22 June 2011 at 11:36AM

Consumerist wrote: »

I bet the energy companies are wetting themselves with laughter on this comment from ofgem.

Haha! Yes, a wagging finger and five minutes on the naughty step...

vaderag · 22 June 2011 at 1:48PM

So, with this news, are we still best off fixing, or do you think prices will drop again soon?

Widelats · 22 June 2011 at 1:56PM

I think ofgem secretly has shares with energy companies, and will do the least possible to get anyone a better deal, who knows what ofgem workers do financially, and privately with their own cash?

If i were a greedy guy, and unscrupulous i would put my cash into the very companies i am regulating, and i would do the very least i could not to have my shares go down.

backfoot · 22 June 2011 at 4:08PM

The whole thing lacks any credibilty, be it the Regulator or the stupid company.

The so called 'product' introduced alongside the huge price rises on standard tariff showed they were taking the pee.

Then only two weeks into its life, it is withdrawn as 'fully subscribed'. how many did they have? Around 20?

Sorry but it's totally descended into farce. :rotfl:

Paulgonnabedebtfree · 22 June 2011 at 8:37PM

Consumer power may end up helping things more. Voting with feet is one way. Another would be for all SP customers to become next to zero users for three quarters and give the real reading on the fourth. That way you only pay the higher unit prices for one quarter and starve them of cash flow as a bonus. They would probably find another way of doing things - such as gradually forcing people back onto a standing charge tariff as they came off contract - but it could help them gauge the level of anger amongst their customers.
I still feel quite angry that the early unit prices are being increased far in excess of the other units. A straight percentage increase would have been fairer as the early units are already charged higher (I have no problem with that as they are in lieu of the standing charge that maintains the networks).
With the internet at our disposal, we have a very powerful consumer tool if used well.
I've no wish to see SP or any other company starved of cash. However, companies must be made aware that if they take the pee and hurt people's pockets with unfair and/or disproportionate increases (that tend to hurt poorer people the most), then the customers may well bite back and hurt the companies' pockets.

davidgmmafan · 25 June 2011 at 1:33PM

I'm sure they will be shaking in thier snakeskin boots sitting in their solid gold house.

I sort of cautiously welcome the (very slightly) tougher talk by Ofgem as its always bugged me how they go out of thier way not to ofeend people. Like I've read loads of times in thier stuff the investigation of X should not be taken as an indication of wrongdoing (or wording to that effect). Maybe it shouldn't be taken as evidence of guilt but there must at least be a suspicioun of wrong doing.

What we really need is someone to take Ofgem to task (Cough, cough, Consumer Focus). They already looked at sales and introduced a raft of new rules. Clearly those rules are being ignored, or are not working. Maybe banning doorstep selling is a solution, I'd certainly support that more than banning animals in a circus.

Switching website have thier faults, but IMO they are as nothing compared to the dubious tactics adopted my so called sales people.

Regarding price I'm not sure there is much Ogem can do other than make sure they are fair and clear. People are ALWAYS going to complain when prices go up, even if there are solid reasons for this.

MSE News: Ofgem plans energy overhaul & probes Scottish Power

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