Ofgem's Retail Market Review - Have Your Say

Red_sky

skelt6or wrote: »

I find it unfair that the energy companies now tie you in to contracts on variable rate tariffs. You don't have the option of switching if your prices go up dramatically (more than others) unless you pay a fee to exit.

You should try Ebico. No contract, no fees to exit, just straight forward low unit prices on both gas and electric. PS. I don't work for them I'm just a consumer like you fed up of being ripped off by the big 6

Red_sky

Cardew wrote: »

However the cheapest tariffs have penalty fees for leaving early and there was an outcry when that happened.

Ebico has one of the cheapest tariffs and they have no penalty fees for leaving anytime. They also have the same tariff across all payment types.

kelloggs36

KimYeovil wrote: »

What is your solution? Do you want British Gas to run at a loss and go bankrupt? You do understand that a business is a business and not a social charity? Why should a business not change their prices in anticipation of and in reaction to analyses? In what way is it 'one sided'? Are you suggesting that British Gas should haggle with individual customers?

The point is that BG has misled the consumer - well, not just BG! They claim that they are struggling in the current climate, yet they make bumper profits - so they are NOT struggling. By being more competitive by reducing their prices when the wholesale price decreases, and only increasing them when absolutely necessary, ie if they are about to make no profits would encourage more customers to sign up with them and therefore they would make the profits. It is pure and utter greed that is making the prices increase, nothing more, nothing less. They can make a profit, nobody argues with that, it is the amount of profits they make, whilst people struggle to pay their bills that is morally wrong and sticks in our throats.

kelloggs36

Somebody may be able to answer this already - why does it cost a different amount depending on where you live? For example, I checked the tariffs for my address and compared to my mum's address about 5 miles away, and hers was a cheaper tariff on the same one if you know what I mean! Why is this? I feel I am being penalised for living where I do!

Cardew

Red_sky wrote: »

Ebico has one of the cheapest tariffs .

Completely wrong I am afraid; much as I admire the ethos of the firm.

They are cheap for very low consumption customers by virtue of having a flat rate ie. no tier1/tier2 or daily standing charge.

However they are very expensive for other users, and also offer no discounts for on-line accounts, dual fuel, payment by DD etc.

Go to any comparison website to check!!

CDent_2

kelloggs36 wrote: »

Somebody may be able to answer this already - why does it cost a different amount depending on where you live? For example, I checked the tariffs for my address and compared to my mum's address about 5 miles away, and hers was a cheaper tariff on the same one if you know what I mean! Why is this? I feel I am being penalised for living where I do!

This is just based on who runs the power grid in your area and their charges:

For example in Yorkshire it doesnt cost much to transport the electricity in the overhead pylons, however in london all the cables are underground, so it costs more to maintain (digging up roads/paths compared to getting a van with a lifting cradle) and the electricity lost through the ground (often known as line loss factor - how much electricity is loss during transmission compared with how much is sent down the line)

Hope that helps

CDent_2

Mazio wrote: »

The energy companies have to make a profit true but they are also paying shareholders and bonuses for management ontop of this they need to upgrade the infrastucture (new nuclear power stations) and green energy as well coupled with normal fuel increases so this has to be paid by the consumer and they hide this in the complex pricing structure.

Don't forget that the government is shutting down a lot of 'ageing' power plants that are now un-economical. New plants have to be built and the gov' aren't putting up the funds! The suppliers have to finance these new stations from profits (I know of one that make about £200 million profit and spends more than this on new developments!)

KimYeovil

Cardew wrote: »

Take two customers paying £1,200pa. The DD customer pays £100 a month. and the credit customer £300 a quarter.

At the end of month 1 the company have £100 of the DD customer's money in the bank. They have nothing from the credit customer.

At the end of month 2 the company have £200 of the DD customer's money in the bank. They still have nothing from the credit customer.

At the end of month 3 the company have £300 in the bank from both customers.

With the DD customer there is an average credit balance with the company of £150 over the year.

I can't see how it can be construed that DD doesn't give a better cash flow. Virtually every company in all fields offer an incentive for payment by DD(or a penalty for not paying by DD)

I disagree.

In practice there will be no monthly debit month 1. So, in fact, following an initial couple of payments it is the direct debit payer who is playing catch up. The difference is completely trivial but two months out of three the quarterly payer will have paid a greater or equal average monthly payment than the direct debit customer.

Remember the boost for the DD payer is a one-off event only at the very start of the contract.

And the reason why debits are priced down is because consumers foolishly prefer two prices rather than penalties for late payment - it is not because for good customers there is a difference in costs or cash flow.

Red_sky

Cardew wrote: »

Completely wrong I am afraid; much as I admire the ethos of the firm.

They are cheap for very low consumption customers by virtue of having a flat rate ie. no tier1/tier2 or daily standing charge.

However they are very expensive for other users, and also offer no discounts for on-line accounts, dual fuel, payment by DD etc.

Go to any comparison website to check!!

Cardew, thanks for your reply. I did. They were second cheapest to N Power who I would never use because of past experience and their very poor service. But yes, you're right, I am a low user so they may not be competitve for higher users because they only have one tier which is one of the cheapest for the first tier.

Red_sky

Cardew wrote: »

Do you know if there is a restriction on the minimum amount of gas electricity?

I have a little used annex, where I don't use £100 worth of gas and electricity. So if I used say a total of £80 for gas and electricity, could I get Npower to pay me £20 for the privilege of supplying me?

I would just love to 'get one over' on Npower

I'm not sure if this helps but I don't think they pay the 100 pounds until after the first 12 months. I'm not sure what happens if you've only used 80.00 though.