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    • Cardew
    • By Cardew 6th Oct 16, 4:18 PM
    • 26,077Posts
    • 12,538Thanks
    Cardew
    Ofgem - simpler tariffs directive(failed)
    • #1
    • 6th Oct 16, 4:18 PM
    Ofgem - simpler tariffs directive(failed) 6th Oct 16 at 4:18 PM
    A couple of years ago Ofgem decided that the ‘tier system’ on tariffs(where customers paid a higher price for the first xxxkWh) was too complicated for many people to understand. At the same time they restricted the number of tariffs a company could offer, again to reduce confusion when selecting the most suitable tariff.

    So what has happened since that directive to simplify tariffs:

    1. Firstly companies have got ever more ‘creative’ in fixing the level of the Daily Standing charge.(DSC) This can now vary between 0p(zero) and 90p per fuel. It is impossible for anyone to know their cheapest tariff without knowing their exact annual consumption and at least be able to perform simple arithmetic. e.g. which is cheapest a DSC of 15p and electricity at 11.876p/kWh or a DSC of 21p and electricity 11.543p/kWh? (answer: choose the higher DSC if your consumption is in excess of 4,960kWh pa – assuming identical discounts)

    2. All the cheaper tariffs insist on the customer operating the account on-line. About 12 million adults in UK do not have internet access and some of those that have access would not be capable of running an on-line account.

    3. Many of the better accounts are dual fuel only. One company is allowed to insist you take their phone/internet/mobile to get their best tariff.

    4. Now to cap it all we have ‘collective tariffs’. These are unavailable unless you have joined a comparison network as a member e.g. MSE’s Cheap Energy Club. To be able to see these collective tariffs you must join(giving personal details) all of the comparison networks. The company call centres cannot offer these tariffs and they cannot be viewed on line. It now appears that some companies restrict access to these cheaper tariffs to new customers only. Loyal existing customers are barred

    Simplify tariffs??
Page 1
    • dogshome
    • By dogshome 6th Oct 16, 7:59 PM
    • 2,660 Posts
    • 1,331 Thanks
    dogshome
    • #2
    • 6th Oct 16, 7:59 PM
    • #2
    • 6th Oct 16, 7:59 PM
    Quite agree, it's one thing if a village or social group band togther as a Co-op to negotiate a deal with a supplier in the energy industry, with those already enmeshed in fixed exit fee deals to decide if it's still worth it or not for them.

    But it's quite another for an industry supplier to offer discounted deals to newcomers only for a short period. Ofgem has ruled against all sorts of dodgy sales tactics in the past, and it's about time they caught up with this one.
    • SammenForLivet2
    • By SammenForLivet2 9th Oct 16, 1:35 PM
    • 528 Posts
    • 544 Thanks
    SammenForLivet2
    • #3
    • 9th Oct 16, 1:35 PM
    • #3
    • 9th Oct 16, 1:35 PM
    2. All the cheaper tariffs insist on the customer operating the account on-line. About 12 million adults in UK do not have internet access and some of those that have access would not be capable of running an on-line account.
    Only fair, paper costs more, not just in postage. Most paper customers will phone in with readings - and sadly, are likely to be a more costly market to service based on there segment. You'll find Priority Service Register and additional meter reading visitor take up is far higher in this segment.
    Thank you all for helping me make my day by saving money!
    Although I work in the trenches for a residential energy supplier, any views, opinions or ideas are my own, and don't represent the views of my employer.
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