Your thoughts for Ofgem

MSE_Martin

Im meeting with Ofgem this afternoon to give thoughts and feedback on the state of play and impact of the energy market. I've obviously got my own list - but would love to know any issues you have that can be raised with it.

Ofgem is the regulator so this is about systemic issues rather than individual problems. Though please do let me know asap

Martin

Gavioli_UK

I have found call centres first reaction with an issue you have is to put you off with the statement "Its common practice in the industry"

Escalate it to a supervisor, and you get somewhere

Escalate it further and you get to a "special unit" to deal with complaints. Suddenly they understand your problem.

How well trained are call centre staff, and how many customers are fobbed of with a reply "Its common practice in the industry"?

In my case complaint about a meter reading used:-

Call Centre - "Its common practice in the industry"

Supervisor - I can't adjust the meter reading, but will make a £5 goodwill adjustment.

Special Unit - Your meter reading can be accepted - thank you for telling us about wrong information given by the call centre and we need to do some training. Would an adjustment of £27 put right our error.

So by pushing my complaint I get a reduction of £32. In the first place I had been overcharged by about £10.

Premier_2

From Ofgem's website:

Protecting consumers is Ofgem’s first priority. We do this by promoting competition, wherever appropriate, and regulating the monopoly companies which run the gas and electricity networks.

Whilst it is accepted that the wholesale price of energy is souring, it appears that the competition amongst retailers is who can declare the biggest increase. e.g. A few months back it was being reported as up to 40-45% and now BG have suggested up to 70%. (although that was over 2 years - but will no doubt allow them to increase prices by a whopping 30% by the end of August this year much to the relief of consumers who hadn't realised that)

Anyway, with 16m customers, BG for example is the biggest retail supplier of gas & electricity in the UK. Is it right that consumers should be made to burden the full weight of wholesale price increases whilst the company maintains it's £1.2billion annual profit or should Ofgem be stepping in to ensure suppliers take their share of the pain?

DGJsaver

Agree with above

What stage does it get to before the consumer doesnt have to shoulder ALL the increases ?

4$£&*(£$&*(!

Hi Martin, I'm sorry I didn't see this ahead of your meeting but I hope you raised Premier's point - the regulator is allowing companies to make BILLIONS of profit each year at our expense. They're all operating in a cartel fashion anyway, there is no competition - one does something, the other five follow their lead. We need profits to be incentivised and anything above this returned to the customer in the form of cheaper prices. What I mean by this is the overall profit should be on a per customer basis, linked to a percentage on how much wholesale energy the company sells (not how much it charges for the energy). That way a company has more of an incentive to keep customers, to keep prices down and to stimulate competition amongst the suppliers to benefit the consumer - let's face it, competition has ground almost to a halt.

Incentivising companies to keep churn low and prices down, linking profits to wholesale costs not consumer costs would be a good start to stimulating the market back up. The only other thing I have to say about Ofgem? Rubber teeth. They're supposed to protect the consumer, what have we heard from them lately about some real action not hot air? (Well tepid air anyway, we can't afford to keep the heaters on long).

milliemonster

I would just like to add, I am trying to renegiotiate a new supplier for gas and elec for my dad who is a pensioner and have been following Martins advice by getting him onto a capped plan now. He is currently with Southern Electric but I am finding it difficult comparing different suppliers as they each work out their prices differently.

For instance one supplier will charge XX for first 200kwh and then XX for rest, yet another will be XX for first 900kwh and then XX for rest.

Why can't they all abide to the same pricing structure? this is making it impossible for me to work our which tariff is going to save my dad money

Ducks_Bum

milliemonster wrote: »

I would just like to add, I am trying to renegiotiate a new supplier for gas and elec for my dad who is a pensioner and have been following Martins advice by getting him onto a capped plan now. He is currently with Southern Electric but I am finding it difficult comparing different suppliers as they each work out their prices differently.

For instance one supplier will charge XX for first 200kwh and then XX for rest, yet another will be XX for first 900kwh and then XX for rest.

Why can't they all abide to the same pricing structure? this is making it impossible for me to work our which tariff is going to save my dad money

I was going to write something similar, it is about time ofgem stepped in on this. It's bad enough having a two tier pricing structure or the standing charge system of working out bills but having different kwh per tier is ridiculous.

At the moment, British Gas's first tier is 2680 for gas, Npower's is 4572 and EDF's is 5680.

On electric, British Gas's is 500, Npower's is 728 and EON's is 900.

That's 3 of the six then there is company's with Standing Charges.

How is your average Joe expected to work this out?

No wonder a high amount of people switch to companies that actually cost them more. Ofgem need to regulate this properly before the new prices come in during the next few weeks.,

Gavioli_UK

Ducks_Bum wrote: »

I was going to write something similar, it is about time ofgem stepped in on this. It's bad enough having a two tier pricing structure or the standing charge system of working out bills but having different kwh per tier is ridiculous.

At the moment, British Gas's first tier is 2680 for gas, Npower's is 4572 and EDF's is 5680.

On electric, British Gas's is 500, Npower's is 728 and EON's is 900.

That's 3 of the six then there is company's with Standing Charges.

How is your average Joe expected to work this out?

No wonder a high amount of people switch to companies that actually cost them more. Ofgem need to regulate this properly before the new prices come in during the next few weeks.,

Isn't this called the competitive market?

Ducks_Bum

Gavioli_UK wrote: »

Isn't this called the competitive market?

err I don't see how having a ridiculous pricing structure constitutes a competitve market.

would it not make it more competitive by everyone having a clear pricing structure so consumers could easily decipher who would be best for them.

keith_lard

Across the board of suppliers

very hard to understand what you are using and what you next bill will be!


its that simple with Gas/Electric.

would go pay and go but I do know that is the expensive option!:mad: :mad: :mad: :mad:



k.

Gavioli_UK

Ducks_Bum wrote: »

err I don't see how having a ridiculous pricing structure constitutes a competitve market.

would it not make it more competitive by everyone having a clear pricing structure so consumers could easily decipher who would be best for them.

I was being sarcastic, because as you say it is far from being a competitive market when it is not easy to compare suppliers.

Foreign energy compnies who have bought into the UK market are quite open by saying that they are in it because it is less regulated than in the rest of Europe and is so profitable.