Are there too many gas & electricity choices? 26 September 2011 at 10:22AM in MoneySaving polls 14 replies 2.5K views

Former_MSE_Lee

Are there too many gas & electricity choices?
Poll started 26 Sept 2011, click here to vote

Politicians have finally stumbled upon the public anger about energy bills and are looking at remedies.

One of the main criticisms is that some people, those who switch and understand the system get much lower bills than those who don't. So here's a simple (perhaps oversimple) choice …

Which of these would you like to see?

A. Lots of choice – cheap deals for the active, even if it means the rest pay more
B. A few simple tariffs – even if the cheapest deals rise in price, but the most expensive fall
[FONT=&quot]C. [/FONT]One flat rate per company– A simple averaged charge[FONT=&quot][/FONT]



Click reply to discuss

Lowlands

I voted 'One flat rate per company'.

I imagine it would save large amounts on administrating the different tariffs, not to mention make customers as a whole better off as it would be much easier to truly see who was the best value. Sure the people who change supplier quite often might end up paying more, but on average the cost should be at most the same.

As an aside I would be interested to see people's opinions on the ownership of utilities in general. I don't subscribe to the theory that 'choice' and the market are the best ways to manage a natural monopoly although I'm sure others will disagree, I think that would make an interesting subject of a future poll.

Scarlet_Fever

Lowlands wrote: »

I voted 'One flat rate per company'.

I imagine it would save large amounts on administrating the different tariffs, not to mention make customers as a whole better off as it would be much easier to truly see who was the best value. Sure the people who change supplier quite often might end up paying more, but on average the cost should be at most the same.

As an aside I would be interested to see people's opinions on the ownership of utilities in general. I don't subscribe to the theory that 'choice' and the market are the best ways to manage a natural monopoly although I'm sure others will disagree, I think that would make an interesting subject of a future poll.

i was just thinking the same (i voted for a few simple without thinking it through)



why do we need many choices? surely we all want the same, the cheapest possible... the only difference in quality is that of the customer service..... (or am i wrong?)

etruscanshades

There shouldn't be any choice at all. All utilities should be nationalised - like they once were. And cheap - like they once were. With decent service - like they once were. With no fat cats paying themselves huge amounts of our money.

Lowlands

The problem with competition in a natural monopoly is that it's imaginary. You can have as many different energy tariffs as you like and come up with as many deals as you can think of but still you're essentially only fighting over percentages not prices as prices are determined largely by OPEC.

I know nationalised utilities have the potential to be inefficient as that's what businesses under no pressure tend towards, but if transparent enough surely they'd be more efficient than a system that repeats itself six times, with six marketing departments, six board of directors, six headquarters etc.

CBenton

There obviously, currently, are too many tariffs to trip the unwary consumer, but there ought to be some flexibility within the industry - especially with those who have solar panels or wind turbines that put back into the system.
What we all need to campaign against are pre-payment meters. The only reason why someone would suddenly, dramatically, increase their energy usage is likely to be because of illness or other family tragedy - not just profligacy. Penalising those who are suffering is morally wrong. All it means is that benefit payments intended to help crisis-hit people are redirected to become shareholder dividends.
EOn are currently in the process terminating our good deal - and are trying to sign us to another (more suitable?) charging system. We also have a penalty period for leaving both tariffs, apparently. This is the firm that recently embezzled over £1000 when they found that they had transposed meter readings for day usage and evening. We are NOT amused!

VoucherMan

Leave it like it is.

So long as there are mugs out there happy to pay over the odds the rest of us may be able to get a better deal

stevemcol

I'm generally into fairness but I'm convinced that having lots of choice should enhance competition and hence generally lower prices. All consumables and products will have overpriced alternatives (LIDL v Waitrose etc) for those that aren't interested in value for money. No reason for utilities to be any different.

However, perhaps energy companies should be forced to provide understandable comparison data with other tariffs.

A.Jones

There should be cheaper deals for those that don't mind switching, just as their are cheaper groceries for those willing to shop around. Also regional variations should stay. If you live near a power plant, energy costs less to get to you, and so you should get a discount - in the same way that there are regional variations in petrol prices, grocery prices, etc.

miriamm

I don't have a problem with utility companies being able to offer a choice of 2 or 3 different tariffs to suit different needs. What I do have a problem with is dozens of different tariffs per company, with no clear explanation of the difference between them and no easy way of comparing like with like. Choice is no choice if you can't get the information you need to exercise it meaningfully.

I actually switched company because the one I was with had too many tariffs and I got so sick of trying to work out which one was likely to be cheaper. (That and the fact they tried to treble my direct debit for no reason). My current company has just 2 tariffs and that's plenty enough for me.

I also have a massive problem with companies being allowed to charge extortionate rates on pre-pay meters - surely the lowest risk to them, since the consumer has to hand over their money before they get any power.

And finally I have a problem with the price fixing and general lack of regulation of this private sector monopoly. Renationalise now!

stevemcol

Miriamm
I just put my details in to two or three comparison sites and take the best. Is it naive to think that will get me the best deal?