'Note to Energy Minister: it's not just laziness stops switching' blog discussion

pqrdef

Doesn't Huhne's logic imply that if we just keep switching we end up paying nothing at all?

I'm looking at my options and I'm finding the main barrier is lack of information. I can't even figure out the cheapest option with my current supplier, because the information isn't available on the website. In fact I can't even figure out what it will cost me just to renew my current deal - an option that isn't advertised at all, although I do know it's available.

Rosso

When we switched from Npower to EDF, we were told our gas meter number was wrong and the switch was cancelled, despite the meter being right outside our front door. Npower had our neighbours meter number under our house number on their database for the last 3 years. Long story short, took months for npower to admit they had made a mistake, and had to get an engineerer to check the whole street's gas meters.

No doubt that npower dragged their heels with the whole process as we were leaving them (took ~4 months), we were even told by them that EDF wouldnt honour the switch as it would take so long and that we should cancel the request.

Point of all this being, the companies don't exactly make it easy to switch! Fortunately EDF did honour the fixed price switch even though it was a little later than we expected.

jalexa

Rosso wrote: »

When we switched from Npower to EDF, we were told our gas meter number was wrong

For the benefit of others reading this that is a very good point which crops up from time to time. Actually it is one of the hidden benefits of switching at least once since it "smokes out" the problem.

Once resolved the next switch will not suffer the same problem.

davidlizard

One reason missed in the article that prevents people from switching:

Most energy suppliers now have penalty clauses in their contracts meaning people have to pay up to £100 to change suppliers. In my opinion, this is wrong as well as unfair. If the charges go right up, then this should be viewed as a major change to the ts and cs of the contract, and people should be allowed to switch without penalty.

rickbonar

Well there are other limiting factors in the quest for cheaper bills.

First off, .. the accuracy of the comparison
Now the only true way of getting a proper comparison you would think is the simple average kwh per year of gas or electric.

However different companies tier your useage so that it gets either dearer or cheaper with how much you use.
And again this is per quarter or month and this can upset the calculations.

Most of telephone sales people refer to "average" consumption which nearly always has no bearing to anyone apart from Mr and Mrs Average anyway.

Finally the energy companies are applying lock ins and penalties for leaving and long contracts so you have to be careful there too. All in is designed to put the customer off changing.

Quite honestly it all worked better and cheaper for the customer when it was nationalised (like all the privatised utilities).

John_Pierpoint

davidlizard wrote: »

One reason missed in the article that prevents people from switching:

Most energy suppliers now have penalty clauses in their contracts meaning people have to pay up to £100 to change suppliers. In my opinion, this is wrong as well as unfair. If the charges go right up, then this should be viewed as a major change to the ts and cs of the contract, and people should be allowed to switch without penalty.

As I understand it, if the contract is for a variable rate, then putting the rate up opens a "window of opportunity" to switch.
More publicity should be given to this, not to mention more "training" (FINES!) for call centres who try to tell the punters such switching is not allowed penalty free.

There is nothing wrong with a fixed rate deal, where the supplier is trading a cheap fixed rate against the security that the punter cannot leave early; without paying an exit charge or (better) losing the deferred rebate that is building up as payment for "loyalty".

[I am happy to do a "bond" deal with a financial institution, where they borrow my money for a year (or more) and give me a fixed rate. A year (or more) later both of us are free to renegotiate or walk away. Personally I don't want to be checking a energy comparison site every week/month, and beating myself up for inevitably having not taken out the best deal - life is too short and 20:20 hindsight is a wonderful concept]

Deferred rebates on variable rate contracts should be made illegal as they negate the "window of opportunity" to switch, that an increase in price creates.

Katie-Kat-Kins

MrsBartolozzi wrote: »

You missed a reason:
Because their supplier won't let other suppliers offer the same thing.

I have Total Heating With Total Control. I'm told it's similar to Econ 10, but I'm not entirely sure (I do know it is NOT econ 7). Anyway, I'm stuck with Scottish Hydro because they are the only ones to offer it and won't let another company take over the meters.

^^^^ This

I'm on E10 and therefore can't use comparison sites, and can only switch back and forth between npower and EON.

So I've not switched for years, but I would happily do so if I was able and I explain this to every blinking salesman who phones up trying to switch my electric supplier.

Also as people on E10 and similar types of meters typically have electric heating they tend to be the highest users, those who stand to gain most by switching.