BG announce 10% price cut.

1carminestocky

The ONLY real reason we have confusion marketing in the first place is we have an essential service in the hands of private, profit-making companies and that's the way they get round the 'comparison' problem. Make it so complicated that the generally apathetic GBP decide they just can't be arsed to even try to switch to a better deal. I'm forever reading about the efficiency of private energy companies versus nationalised ones. Really? We now have 6 super computers where we would only need one (BGs alone cost £500,000,000 and doesn't work!), we have 6 Retentions Dept when we wouldn't even need one, we have 6 sales depts when we wouldn't need even one, and we have 6 massive teams of door knockers when we wouldn't need even (all these pdepts are staffed by people on commission, btw). It's nonsense peddled by people who have a vested interest in the privatised enrgy industry in the main..


PS Not forgetting the plethora of switching sites whose sole purpose is pocketing affiliate income. The whole industry is an absolute disgrace. Fair enough if it wasn't offering a product everyone actually needs because then there would be a choice..

itsj2

Can anyone tell me what the actual unit price for gas ( or percentage decrease) will be for CE 6 in the old Norweb region, please?

smidgey

Don't say I don't give you guys anything!

Click 6 Prices as of 19th Feb 2009 (ex VAT)

Tier 1 Tier 2
Eastern 6.478 3.086
East Midlands 6.482 3.101
London Electricity 6.517 3.125
ManWeb 6.438 3.046
Midlands 6.531 3.164
Northern 6.481 3.088
Norweb 6.430 3.037
Scottish Hydro Electric 6.361 2.969
ScottishPower 6.361 2.969
Seeboard 6.482 3.109
Southern Electric 6.532 3.158
SWALEC 6.433 3.055
SWEB 6.482 3.109
Yorkshire 6.432 3.057

No Websaver1 rates yet but the tariff is always set to be 10% lower than standard rates.

filmnoir

Cardew wrote: »

The argument then was much like now - BG are conning people as they know prices are going to drop etc.

Predict rather than know, like any comodity anything can happen thats not factored in.

An interesting point on the other five dropping slighlty more than BG and BG then matching. BG owns the market share of Gas Suppliers, so its purchasing power is larger and dictates the price cut. The others go a tad lower to increase their churn in the market, BG responds by then lowering to even out the churn. You'd be surprised but in the SME and Major Business markets the other 5 tend to make losses on Gas, but have to compete to ensure customer base in electric.

This was noted in the OFGEM report last year that the Gas Market is still a long way behind in terms of competition and about the clarity of tarriffs which will end up being in the Supplier License. However a key reason is people dont switch!

filmnoir

1carminestocky wrote: »

We now have 6 super computers where we would only need one (BGs alone cost £500,000,000 and doesn't work!),

Alot of that was down the the external company employed to roll it out. Funnily enough most of the other suppliers are looking at the same system, SAP Utilites.

Mazio_2

If there was only 1 utility company why would we be forced to chose a fix rate as the company would know near enough what gas and electric it needed and would buy it on the market the only reason they have to do this now is they dont know how many will stay with them or move and that means they cant buy it 100% or they could be left with a surplus they dont need.
It also means they can balance their books easier and forecast profits for shareholders.
Its not for the consumers only to benifit or I bet they wouldnt do it.
The other reason for confusion is they can hide behind it. They only sell 2 products and there are only 6 companies so the only way to do it is to implement 100s of tariffs to make it look like there are 100s of products.

terryya

I'm on click 6 but am tempted to transfer to EON just to get their £70 quidco. By the time that switch takes place all the suppliers should have announced their prices and I can then choose the cheapest.

KimYeovil

alared wrote: »

Thanks very much for the maths lesson which goes to prove a mere 10% cut after a massive 55.25% increase (your figures) is chicken feed.

As I have said in an earlier post,this cut is more for the benefit of not being referred to the competition commission.

And here's an English vocabulary lesson - that was arithmetic, not mathematics (yes, I know arithmetic is a sub-division.)

I don't disagree - the emulation of Tesco and Sainsbury style 'cuts' is irritating. But there are a lot of people who are under the impression that there should be a linear link between the cost of a raw commodity and the charge per kWh!

backfoot

filmnoir wrote: »

Alot of that was down the the external company employed to roll it out. Funnily enough most of the other suppliers are looking at the same system, SAP Utilites.

So these Consultants didn't work with a Project Team of BG Management and experts?

Most of the other suppliers are as stupid as BG and will fork out millions to make no improvement whatsoever and probably end up with non functional systems.

1carminestocky

terryya wrote: »

I'm on click 6 but am tempted to transfer to EON just to get their £70 quidco. By the time that switch takes place all the suppliers should have announced their prices and I can then choose the cheapest.

I would do exactly the same in your situation.


PS Scottish Power are offering £72 at topcashback.