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MSE News: Government to announce energy crackdown
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A dispute between a consumer & Npower which is now heading for the Courts has seen the Energy & Parliamentary Ombudsman & Consumer Focus look at it enroute - but each only looks at the narrow legislation which suits their agenda (even when other legal issues are pointed out to them).
Do you have details or a link please?0 -
Perhaps CH is actually one of the disgruntled customer's of EDF or NPower and is so !!!!ed off he has gone for the jugular.
Perhaps he has submitted a meter reading into 'my account' and the whole national investment plan has now gone belly up.
Or he switched after a price rise and some idiot has still charged him an exit fee.:D
I'm sure we all have bad experiences with suppliers, but Huhne needs to be responsible enough to consider the long-term good of the country, not the short-term wishes of voters.
Over the next 10-15 years, Britain needs £100bn of investment. That cannot all come from the big utilities, but a sizeable amount needs to. And if you're going to invest e.g. £5bn into a new nuclear power station, you need comfort that you're going to get a return on your investment.
To be honest, 99% of people in this country don't understand the energy sector, but it's a bit sad that the Energy Secretary is one of them.Says James, in my opinion, there's nothing in this world
Beats a '52 Vincent and a red headed girl0 -
Perhaps he feels that if they can't do the simple things right like billing and admin,then what chance do they have of building a power infrastructure.
EDF's botched CS and billing platform doesn't inspire much confidence.
Anyway, tidying up the malpractice of the Suppliers and their horrendous interface with customers doesn't impinge on the higher margin generation businesses.
Who else is in the 1% ?
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Perhaps he feels that if they can't do the simple things right like billing and admin,then what chance do they have of building a power infrastructure.
EDF's botched CS and billing platform doesn't inspire much confidence.
Anyway, tidying up the malpractice of the Suppliers and their horrendous interface with customers doesn't impinge on the higher margin generation businesses.
Who else is in the 1% ?
The point is that you have to look at this from the point of view of an investor: it's all about creating investor confidence that the UK is a market which is a safe place to invest.
My job is all to do with exactly that: persuading (mainly) foreign sources of capital to invest into UK power projects. The main concerns I get are:
- will the UK be a long-term safe place to invest; will the UK Government renege on its promises
- will the £ drop in value against the €? If you invest in UK power plant you'll get your return in £ which if you're a €-fund is a massive potential risk
- what guarantees will the government give in terms of long-term security.
Contrary to common belief, most investors don't want huge returns, they would far rather have a safe 7% investment than a risky 15% investment.
What Huhne has done may will probably do nothing, but at best will save voters £50-100 a year in the short term. The risk is that this then costs us many £100s a year in the long term, and at worst we don't get foreign investment at all and that £100bn is simply paid by the treasury = significant risk to long term credit rating.Says James, in my opinion, there's nothing in this world
Beats a '52 Vincent and a red headed girl0 -
Centrica made £1.92billion last year - up 19%. - They operate globally and that reflects the world- wide rise in prices.
If the Utility companies did not insist that customers cleared their debt before switching, and there were no restrictions on them leaving, many of them would switch from company to company leaving a trail of debts; and it would be the rest of us that would pay in higher prices.
Utility companies, in effect, grant customers credit. All companies check credit records of potential customers. Do you think that another Utility company would take on a customer knowing that they owed £hundreds? The current situation is that the losing company stops the transfer, but that saves the 'gaining' company from refusing to supply.
Its not a fair analogy with Tesco, they don't grant their customers credit of £hundreds.
To be fair, whilst I accept that tesco don't generally grant credit of £hundres as you say,
It was you & not I who brought the analogy of Tesco in wasn't it?
Tesco also of course provide all manner of goods and not just necessities - many can be done without if you so wish. Gas & certainly electricity are much harder to do without!
As to switching & objections, to quote you from above, "Frequent assertion ain't proof!!!" & as it has never been tried there can be no evidence for this "frequent assertion"!
I have known of an energy supplier stating they would take on a customer with debt to another co. It has also been stated on this forum and other places that some suppliers (Npower have certainly been mentioned though I have no hard evidence that this is true at present) don't credit check - because they don't actually have / need to under the present system.0 -
Do you have details or a link please?
No link yet no. However, in brief a 2 day trial is currently expected to begin on November 28th & centres on whether the Energy supplier is legally able to impose their supply on a Consumer (on the grounds of a debt & transfer objection) when a consumer has stated they do not want that supply.
The Transfer objection within the Electricity Act says one thing UK & EU Consumer Protection Legislation appears to say another!
Having failed to get anywhere with the Ombudsman, Consumer Focus or via their MP and Npower refusing to undertake mediation when Npower attempted to impose a PPM whilst ignoring an offer of resolution that would have met the Ombudsmans earlier suggestion. (At the time the Consumer had been finacially unable to do so & it had therefore strictly speaking lapsed though Npower had repeatedly claimed they would honour it beyond that) the Consumer, determined they would not be bullied & the issues would instead be heard in Court, therefore told Npower they were not fitting a PPM & to disconnect the supply (which they ultimately & reluctantly did after calling the Police, assuming this would enable them to fit a PPM & the Customer still asserting their rights to refuse it) & despite the horrendous circumstances has now stood their ground for over 16.5 months so Npower were subsequently forced to do what the Consumer originally suggested back in 2007 / 2008 & take the dispute to the Courts
The Consumer then filed a defence together with a sizeable counter claim & Npower then sought 20 minutes to have this defence thrown out as showing no prospect of success.
The District Judge hearing that application refused their application stating this to be due to insufficient time to consider the issues raised and some novel principles of law being raised which needed to be considered at length. The Counterclaim, contrary to Npowers expectation, was also allowed to stand.
It seems to me that Npower have aimed to delay things & rely upon threats of huge costs & the consumer losing their home as a means of ensuring this trial never happens.
Npower's Parliamentary liasion meanwhile snidely claimed to the Consumers MP to know what kind of person this Consumer is (despite the fact she'd never had any direct contact with them) but clearly they don't & barring some serious reconsideration & compromise by Npower I have no doubt this trial will happen!
Details may also I understand be about to land on Hunes doorstep basically asking whether he & his Civil Servants are true to his word / stated intentions or not!
Interesting the RWE paralegal dealing with this is apparently the same man who lost the Christopher Poncelot case & subsequently basically denied that it was anything other than complex legal issues in that case despite the Judges criticisms of their failure to settle the case & finding of harrassment.0 -
The point is that you have to look at this from the point of view of an investor: it's all about creating investor confidence that the UK is a market which is a safe place to invest.
My job is all to do with exactly that: persuading (mainly) foreign sources of capital to invest into UK power projects. The main concerns I get are:
- will the UK be a long-term safe place to invest; will the UK Government renege on its promises
- will the £ drop in value against the €? If you invest in UK power plant you'll get your return in £ which if you're a €-fund is a massive potential risk
- what guarantees will the government give in terms of long-term security.
Contrary to common belief, most investors don't want huge returns, they would far rather have a safe 7% investment than a risky 15% investment.
What Huhne has done may will probably do nothing, but at best will save voters £50-100 a year in the short term. The risk is that this then costs us many £100s a year in the long term, and at worst we don't get foreign investment at all and that £100bn is simply paid by the treasury = significant risk to long term credit rating.
All of that's fine and dandy regarding future investment. What exactly in his proposals/speech are you objecting to?
As far as I can see we all just want fair play,simplification,competition,good service and stable prices (yes, I know that comes from your bit) .
The Suppliers have simply not delivered on any of those factors through self regulation so the beak has finally had enough. It's so far away from an election, I just think he is doing what needs to be done.
Perhaps you are a bit too close to one part of the action and have become oversensitive.0 -
Perhaps you are a bit too close to one part of the action and have become oversensitive.
I am not denying it! But if I'm oversensitive, then think how it feels if you're about to sign a cheque for £15bn.
We're all bill payers, but not many of us deal with what I do and I just wanted to give the other perspective.
You have to look at what has happened in other countries recently. Germany has recently introduced a tax on nuclear operators, which takes away so called 'windfall' profits. Very popular with voters. Hence the share prices of RWE (npower's parent company) and E.ON dropped about 50% in the last six months alone and both have issued massive profits warnings.
I imagine few here will shed a tear at that. But you have to earn money before you can spend it. You can borrow to invest on the strength of future profits. RWE and E.ON together have a joint venture called Horizon which was planning to invest about £15bn into two new nuclear stations in the UK by 2025 (new generation which we desparately need). Now that the profit stream has been reduced, RWE and E.ON probably can't afford that.
So that £15bn is already at risk because of the actions of the German government. If Huhne isn't careful, he'll destroy investor confidence even more and we won't find anyone to invest the money.Says James, in my opinion, there's nothing in this world
Beats a '52 Vincent and a red headed girl0 -
Magyar,
Your knowledge and analysis is unquestionable regarding the investment challenges ahead.
However,even though I asked,you didn't explain why Huhne's Supplier broadside wasn't warranted or why we should all be held to ransom because some of the same companies are involved in Generation.
As you well know the two businesses must be kept separate in their processes and operations. Huhne amongst other things was trying to encourage new Supply entrants.
Politics will always be a factor. Don't you think his team will have weighed up the risks you have spoken of? I just rightly believe we have all been done over by these dreadful companies for so long,even politicians have woken up to it.
Your job sounds fascinating. (and well paid...:)) good luck.0 -
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