Are loyal energy customers LEGALLY penalised by their suppliers?

BigAl99

Plushchris wrote: »

The energy industry is different, there is only one product to sell (or two if its dual fuel) and to have every customer on the cheapest tariff possible wouldnt make sense.

Cardew wrote: »

The simple fact is that if any company put all their customers on their cheapest tariff they would have to raise that tariff to an uncompetitive level. They have to rely on some customers paying higher prices on both 'unrestricted' and expensive fixed/capped tariffs to 'subsidise the cheaper tariff customers.

This almost sounds like you are saying that this is a good thing. As in the only way we can hope to get it cheaper is if they play the intertia-game on all the other customers, but not on us because we'll keep switching. Viva le status quo!
:beer:


P.S. From the Daily Telegraph 27th Feb 2009 "Centrica reported an operating profit of £1.94 billion, with British Gas making £379 million – equivalent to £24 for every one of its 15.6 million customers." ...This should put "2% profit" in perspective. Apparently most of that profit went to the shareholders in 2009.

Plushchris

BigAl99 wrote: »

This almost sounds like you are saying that this is a good thing. As in the only way we can hope to get it cheaper is if they play the interia-game on all the other customers, but not on us because we'll keep switching. Viva le status quo!
:beer:

I'm not saying its a good thing, but its the only way it will work.

To have everyone on "the cheapest tariff" wont work because that means that tariff would then go up to the point of being back to square one.

While I agree that loyalty should be rewarded, I also think laziness should be penalised...

It takes all of about 10 mins every 6 months or so to check your prices and switch if needed, if people cant be bothered to do that then why should I have to pay more for my supply so they can get it cheaper?

BigAl99

Plushchris wrote: »

It takes all of about 10 mins every 6 months or so to check your prices and switch if needed, if people cant be bothered to do that then why should I have to pay more for my supply so they can get it cheaper?

Spoken like a true conservative.

Tell, you what, let's have an American Health Care System while we are at it.

Ooops - danger of this becoming a political debate, but all the same: "With over five million households in fuel poverty, but millions in profits still being made, the energy market is clearly working for shareholders but not consumers. " Daily Telegraph 27 Feb 2009

If the general recommendations we all make here are taken up by all the customers, then there is no "they" to make "your" bills cheaper. So I guess you'll have to stop spreading the word that people should be promiscous and keep switching - else you'll have the same situation anyway - fuel bills will level out at what they actually cost + profit.


P.P.S. again - in case you missed it earlier as I was editing (sorry - bad habit in a forum).... From the Daily Telegraph 27th Feb 2009 "Centrica reported an operating profit of £1.94 billion, with British Gas making £379 million – equivalent to £24 for every one of its 15.6 million customers." ...This should put "2% profit" in perspective. Apparently most of that profit went to the shareholders in 2009.

Plushchris

So you are of the opinion that everyone should have to pay more so that people dont have to make sure they are on the cheapest tariff correct?

BigAl99

Plushchris wrote: »

So you are of the opinion that everyone should have to pay more so that people dont have to make sure they are on the cheapest tariff correct?

My apologies - I was editing extra reference info into the earlier reply (bad habit I know) so you may have missed what I was suggesting, and perhaps the nature of "my politics".

My opinion is this: I see no reason that a nice even cost+profit for supply+service cannot work. After all, I bank with NatWest not because they are the "cheapest" but because their internet based banking system is second to none. It saves me time and effort. i.e. it is a service for which I am happy to "pay" a little extra. On top of which, NatWest also tell me fairly regurlarly about their new self-competitive products. They make me feel like a valued customer. If I wanted cheap banking I would switch my account to a bank that saves money by being "half-hearted" in their investment in such service.

I believe I am right that someone earlier drew a reasonable parallel between the tariff-marketplace and the banking one.

BigAl99

If you remember, all I really asked for is that Eon tell me (an existing customer) when their own product range has been updated. Because (believe it or not) I actually like their service in all other respects.

Plushchris

But then would you begrudge letting all those people that DO want cheap banking have it because you feel like everyone should have the same treatment that Natwest give you?

Because thats what you are suggesting for gas and electricity..

BigAl99

Plushchris wrote: »

But then would you begrudge letting all those people that DO want cheap banking have it because you feel like everyone should have the same treatment that Natwest give you?

Because thats what you are suggesting for gas and electricity..

No - it isn't. Read my other inputs above. (We are exchanging responses too quickly).

I shall stop typing now....

BigAl99

Apart from which - I don't believe I have expressed any grudges against any other consumers anywhere (whereas you on the other hand, have).

Plushchris wrote: »

... if people cant be bothered to do that then why should I have to pay more for my supply so they can get it cheaper?

Plushchris

You suggested that E-on let everyone know about their cheapest tariff, which a few of us have pointed out how that would mean higher prices for everyone with E-on.

You said you like Natwest and dont mind paying that bit extra for the better service but you dont begrudge people wanting cheaper banking..

If E-on DID let everyone know about the cheapest tariff EVERYONES prices would go up, so if E-on adopted your idea, all those people that like E-ons service (like you) but are currently on their cheapest rate would get their prices hiked because you think everyone should get the same deal?

I dont begrudge anyone anything, if they want to stay where they are then thats fine by me, what wouldnt be fine was having my own prices put up because people dont want to make sure they are on the cheapest tariff themselves...