What would it take for you to trust your energy firm?

MSE_Wendy wrote: »

What would it take for you to trust your energy firm?

I already trust them (and all energy firms) to deliver on what's agreed - i.e. to provide electricity and/or gas at the offered and accepted prices, with no price rises for as long as the fixed rate period (if any) lasts.

I don't think I'd ever trust them to look out for what's best for me - but then I don't think they ought to. Just as with any other company/organisation. As per Martin's philosophy, it's their job to make money and our job to be adversarial consumers.

What is stopping you from switching?

Nothing. I do when another energy company offers a deal I consider better. (Usually that means "cheaper", but not always.)

How could the market work better?

If there are any failures in the market, it's ultimately going to come down to barriers to entry.

Let's say there was a market failure, and so existing companies were making unreasonably high profits/return on capital. This should cause others to look on with envy, decide they want a slice of the pie, and start up their own energy company to compete. This new company could undercut the others to gain market share and still make better profits that were available in any other industry.

End result - new entrants keep crowding out the existing players, unless or until profits are reasonable relative to the investment/risk involved. (That is, setting up an energy company is no longer any more attractive than setting up any other company.)

If this balance can't happen due to overzealous regulation of new entrants, or astronomical one-time registration fees, or even !!!!!-style threats from other companies, then stopping these would make the market better.

(On the other hand, if new entrants can enter the market relatively freely, it puts paid to the claims of a cartel. An individual consumer might say they think prices are "too high" - but if every other person with capital considers starting an energy company to be not worthwhile, it strongly suggests there's no surplus profit.)

MSE_Wendy wrote: »

What would it take for you to trust your energy firm?

A small miracle!

Plus, OFGEM need to let the energy companies run the business the way they see fit, with a cap on profits. I'm convinced that OFGEM are helping artificially inflate prices by keep interfering with tariff structures, standing charges etc. No one has ever asked me what I want, yet OFGEM claim to be working in my best interest. Really? Hmmm.

My present supplier has agreed it owes me money but "issues" (??) prevent them letting me have it. Give it to me Npower - I might consider staying with you - or perhaps not.

I totally trust my supplier. The main reasons are ease of access to my bills online, able to control my Direct debits and input meter readings and a system that shows if I change my DD's how much I will be in debit or credit at the end of the plan year. It gives me total control.

Of course that is for the computer savvy amongst us. For others with no web access they need to have clear bills that say in bold whether it is estimated or actual readings. It should also say that they must contact with accurate meter readings or that they may be building up a debit or credit balance.