Unfair Charges For Paying By Cash - Could This Be The New Bank Charges Claim ?

crunchcredit

Hi All

was reading in the papers how OFGEM have said that they are gonna force the energy companies to do away with `unjustified pricing` ie that prices for not paying by ddr should refelct the true cost.

this is £20 , yet most charge upto £69 extra.

its also in defiance of an EU directive which says the same, that prices should reflect the true cost.

OFGEM say we are paying on average £80 per annum more by paying cash/chq. so lets say gas/elec/phone/water, thats [EMAIL="4@£80"]4@£80[/EMAIL] over say last 5 years, thats £1600 !

could this be the new bank charges claim ?

Joyful

When you add up the cost of each reminder letter going out, then the phone calls and finally visits then sometimes Court actions, the cost of cash customers can cost Companies lots more in the long term. DD customers do not need any of the above.

Cardew

I think the companies might look at it 'from the other end of the telescope'.

i.e the correct and fair charge is for quarterly payment giving up to 4 months credit. The companies see fit to give a discount off that fair price as an incentive to pay by Direct Debit.

So they will argue that the criticism is they have given too much discount!!!

Additionally the companies all argued before the Parliamentary Committee on Energy that the additional prices charged for pre-payment meters reflected the additional costs. I think Ofgem has costed this at £85 per customer per fuel(don't quote me)

However under pressure from the Government they have reduced prices to the same as a standard tariff. So put simply pre-pay customers are now not paying a fair rate.

If they were to try to compensate those who pay quarterly, isn't there an argument that pre-pay customers should be charged extra again?

Plenty of companies - for all manner of services - will only let you pay by Direct Debit; where would they stand?

As far as I am aware there is no discount for paying water by DD.

Premier_2

crunchcredit wrote: »

Hi All

was reading in the papers how OFGEM have said that they are gonna force the energy companies to do away with `unjustified pricing` ie that prices for not paying by ddr should refelct the true cost.

this is £20 , yet most charge upto £69 extra.

its also in defiance of an EU directive which says the same, that prices should reflect the true cost.

OFGEM say we are paying on average £80 per annum more by paying cash/chq. so lets say gas/elec/phone/water, thats 4@£80 over say last 5 years, thats £1600 !

could this be the new bank charges claim ?

Where did you get the £20 figure from?

If it's against the EU directive, could I owe my supplier £100's of pounds I don't know about?
I buy from ebico and pay quarterly on receipt of bill.
They currently charge me the same as if I were to pay monthly by DD.

Do I owe them money? Will they back-bill me extra to comply with this EU directive of which you speak?

I blame Ted Heath! :mad: