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MSE News: 'Millions paying too much for energy bills'
Former_MSE_Paloma
Posts: 531 Forumite
in Energy
Millions of households are "paying too much" for energy, a Competition and Markets Authority investigation has found...
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'Millions paying too much for energy bills'
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'Millions paying too much for energy bills'
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Comments
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That is another bonus that Maggie left us.I used to be indecisive but now I am not sure.0
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*Millions of households are run by idiots.0
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If the millions of households paying too much suddenly switch to the lowest tariff they can what will the energy companies do?
Put up the prices so they still rake in the same amount of money.over 73 but not over the hill.0 -
*Millions of households are run by idiots.
Or are in fact by people unable to use or don't have access to the internet, or are on a pre-payment meter, or are just seriously brassed off with the never-ending merry-go-round of having to switch every year just to get a fair deal! Which then changes a couple of months later to cost the same or more than the one they just left anyway.
The current system stinks.0 -
BlondeHeadOn wrote: »Or are in fact by people unable to use or don't have access to the internet, or are on a pre-payment meter, or are just seriously brassed off with the never-ending merry-go-round of having to switch every year just to get a fair deal! Which then changes a couple of months later to cost the same or more than the one they just left anyway.
The current system stinks.
You don't have to switch every year, pick up the phone and ask your own energy provider to put you on their best tariff. You will need to pay via DD, service your account online but if folk can manage to get off their backside they will save money.
As for Pre payment, I am a big fan it helps millions not to get into uncontrollable debt, the majority of folk on them use their energy more wisely.0 -
That is another bonus that Maggie left us.
Indeed the UK has some of the cheapest gas & electric in Europe thanks to Maggie.
Imagine a public sector utility are you telling me it would be cheaper!!!?? Look at France nationalised and more expensive.
Then think how many candles you would have used during those public sector strikes which would have be inevitable.0 -
People have a choice to get their leccy or gas from whoever supplies it, the same way as they can either get their petrol from Esso, BP or Tesco.
Likewise with their shopping - Tesco, Lidl, Aldi, Sainsbury's etc etc.
If they are too idle to get off their backsides and look around for a better deal why should the rest of us who do subsidise them.
If those who take gas, leccy, petrol, bread or cakes without paying then they should be prosecuted, not told that they will be let off and some other mug will pay or bail them out - sounds a bit like Greece.
Please lend some more so I can pay off my debts and be even more in debt and when I've got even deeper in the mire expect it to be waived because it's someone else's fault for letting me borrow it.
The world is going mad.Never under estimate the power of stupid people in large numbers0 -
BlondeHeadOn wrote: »Or are in fact by people unable to use or don't have access to the internet, or are on a pre-payment meter, or are just seriously brassed off with the never-ending merry-go-round of having to switch every year just to get a fair deal! Which then changes a couple of months later to cost the same or more than the one they just left anyway.
The current system stinks.
I was being deliberately inflammatory. Vulnerable customers are only small % of sticky customers. All the major suppliers have a vulnerable customer strategy and dedicated teams to assist those in need and contribute to central fund.
Every customer is told the cheapest they can be on on in the right hand column of page 2 of every bill. This isn't the cheapest market tariff but the cheapest currently offered by their supplier. Its personalised to their consumption and there situation.
The PPM issue will go away with SMART; PPM should be cheaper than DD once SMART in home prepay takes off. The issues surrounding current PPM are due to the limits imposed by the 3rd party paypoint infrastructure, these issues are outside of the suppliers control.
Prices have been falling for years, if you've switched and ended paying more you've done something wrong.0 -
As said above, those remaining on the expensive standard tariffs are providing a cross subsidy to those of us who chase the cheap deals.
It seems that the only way to stop this would be to only have a single tariff - and to hell with the notion of competition.
It is the same with bank savings accounts. Many will have their life savings in 'double gold - super saver - etc' earning 0.1% interest. I have several old accounts with £1 left in to keep them open. I had a letter recently proudly proclaiming that my interest rate was to rise. It did - to 0.2%.0 -
We need to be clear what this report is saying. It is not particularly saying that across the board energy companies are making too much profit by charging too much (looking at most companies results show that the "per household" profit is low enough that if it was entirely removed most of us wouldn't notice the difference) but that there are winners and losers in the current system.
However its difficult to avoid that whatever you do. If you force energy companies to have just one tariff with no standing charge where you pay x pence per unit then its going to firstly be pretty obvious and secondly force all of them to effectively charge the same. However, is firstly going to mean that a lot of people pay more than now as that rate will be an averaging of the best and worst rates. Secondly a lot of things that people like such as fixed rates will disappear and thirdly those perhaps with health needs that use more energy will pay more due to the absorbing of standing charges into unit rates.
Its quite ironic that barely months after the 4 tariff rule was brought in to improve clarity and thereby competition, its now being suggested for removal to improve competition!
Brits keep moaning about our energy bills - in price terms they are cheap by comparison with most European countries. Our big problem is the amount of energy we waste because our housing stock is so inefficient.Adventure before Dementia!0
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