Massaging the facts about recent increases

youravinalarrrf

The old 2003 figures were calculated based using mean consumption figures. To calculate the new typical consumption figures, Ofgem used median historical values.

Mean: Adds together a set of figures and then divides by the number of figures in the range.
Median: Arranges a set of figures in order of size. Takes the middle figure.

Ofgem say that using median values allows their figures to be more representative for a greater number of consumers.

The new Ofgem Jan 2011 figures are now:-

Typical low user: Gas - 11,000 kWh, Electricity - 2,100 kWh.

Typical medium user: Gas - 16,500 kWh, Electricity - 3,300 kWh.

Typical high user: Gas - 23,000 kWh, Electricity - 5,100 kWh

ofgem.gov.uk/Media/FactSheets/Documents1/domestic%20energy%20consump%20fig%20FS.pdf

grahamc2003

My increase for electricity (no gas) on Bgas websaver 11 was around 35% for my quite high usage.

The market for the electricity supply industry is now a disgrace, with tariffs being set by nothing more than confusion marketing so most people simply don't understand - a really crap way to run a business.

Typical will be the quoting of the recent rises - I think bgas said the recent rises were 9% for electriiy and 15% for gas. To get those numbers, the method will be defined by the regulator. The problem with that is that the suppliers will simply rig the rises to get the maximum overall rise while complying with the method. A bit like official car mpg numbers - the method of the test to determine those causes the parameters of the engine to be set to produce the highest official mpg, rather than the best settings for average driving (for cars which sell on mpg considerations).

The rises aren't terrible in themselves - there is an element of a freeish market in that people can switch, it is the manner of obfuscation which is really distastefull imv, and that enables higher prices of course.

rollon65

Wow! That seemed to touch a bit of a nerve, didn't it?
By readily disclosing that we were in for a jolly high hike in prices, it seemed to dull our desire to pry into it further, didn't it?
I asked some of the guys I work with if they had actually read the REVERSE of the statutory notice of increase letters. Not one had gone beyond the front page.
What do you know? - we're all being taken to the cleaners by the energy suppliers AGAIN, they thought.
Except that if you fall into a certain category, you are being CLEANED OUT!
Too late to re-nationalise the power companies now, they are all foreign owned - all that's left is to put some thick woolly jumpers at the top of your Christmas list!

Gerrard_8_lfc

rollon65 wrote: »

Too late to re-nationalise the power companies now, they are all foreign owned - all that's left is to put some thick woolly jumpers at the top of your Christmas list!

SSE & BG are British owned

MillicentBystander

Gerrard_8_lfc wrote: »

SSE & BG are British owned

It doesn't stop either of them having foreign shareholders of course. But I accept that both the companies you mention are essentially British. Still only 33% of the Big 6 though.

JSR

Foreign ownership is not a bar to nationalisation of British based assets. Not that nationalisation would make gas and electric any cheaper. Probably the opposite once it became a unionised political football and the public sector bureaucracy is set upon it.

If you're not getting much out of tier 1 prices have a look at Ebico's flat rate tariff. You'll probably halve your bill. I did!

rollon65

Firstly, may I offer my apologies for "massaging the facts" about foreign ownership of our utility companies.
I should have used the term "the majority are foreign owned. . ."
Particular thanks to JSR - I shall take another look at the Ebico offering, but when I last looked, it was impossible to view the average dual fuel costs as the actual figures dropped out of the bottom of the panel they were presented in.
I guess I could do some work on the kWh rates offered in order to make a comparison though.

Best regards.

chanz4

I wonder how much of the price rises is due to bad debt, write offs and backbilling etc.

rollon65

Hello again,

After my last posting, I did take another look at Ebico. Their rates appeared to be lower than my existing highest rate and higher than my lowest rate.
I then used energychoices.co.uk to see just what other improved deals were around.
I was pointed in the direction of npower - the very company I left before I joined e-on.
They would apparently save me over £190.00 over my existing outlay.
I didn't warm to the fact that this would be by way of a rebate after 12 months usage.
Then I recalled all the other deals from competing energy companies who told me that they were happy to take £10 a month less from me than my existing supplier.
Without exception, after 12 months of dealing with them, I would be advised that what I had been paying had not been enough to see me with a £000.00 balance at the "reconcilliation quarter" and that for the next year my direct debit would need to be £15 - £20 a month more.
At that point I realised that a lower charge can only be a lower cost if it can be seen to have been so at the end of a years usage - and no-one ever offers that particular deal.
So still I hanker after cheaper gas and electricity, but I have lost all faith that this can be achieved with any certainty just by swapping to a provider that offers to reduce your direct debit.

Mugget

Gerrard_8_lfc wrote: »

SSE & BG are British owned

SSE is the only wholly British owned company. British Gas is not British!