David Cameron writes for MSE on his plans to help on energy bills

grizzly1911

Katie-Kat-Kins wrote: »

Oh yeah great proposal to penalise those of use without gas AGAIN. So we would be classified as high users and pay VAT on our electric and be incapable of taking advantage of the "low user" exemption for gas. So all of those people living in properties without gas central heating who already pay more to heat their homes and are already penalised by not being able to use dual fuel discounts would be penalised again.

If you are a single fuel user with no choice I am sure an extension or double "low user" banding could be applied, if they wanted to.

lynzpower

Katie-Kat-Kins wrote: »

Oh yeah great proposal to penalise those of use without gas AGAIN. So we would be classified as high users and pay VAT on our electric and be incapable of taking advantage of the "low user" exemption for gas. So all of those people living in properties without gas central heating who already pay more to heat their homes and are already penalised by not being able to use dual fuel discounts would be penalised again.

I wasnt a high user when I only used electric, as I recall my bills were a lot lower, paying about 38 per month for electric. ( althou this was a few years ago)

I now pay 35 pcm electric and 25pcm gas.

davidgmmafan

Just another point following on from post 182 I too am skeptical of Ogem's abilities to get the job done. Look at the pitiful effort they made over gas sculpting, Consumer Focus secured a much better outcome with no real clout... What's the good of giving Ofgem more powers if they are still hopeless? The only reason they are being retained is they are cheap...

Finally I wounder if someone could clarify what exactly is proposed. It maybe the person writing the info was confused but I generally read the BBC news on the morning on my Virgin Media box. That was saying something about standard tariffs, but even that mention six per company. It was something like one for electricity, one for gas, one for dual fuel, one for DD, prepayment etc etc. I can't see how this differs particularly from the current system particularly if they are allowed to have an unlimited number of fixed or reduce rate tariffs.

I also CANNOT understand this idea that certain deals have an introductory discount. How many customers WANT such a system? I'm sure a lot would be content to bump along on a deal close to the best without the hassle of having to check every 6-12 months as you do now. Do we really want to copy the way banks do business with savings accounts and things??? REALLY?

magyar

davidgmmafan wrote: »

I also CANNOT understand this idea that certain deals have an introductory discount. How many customers WANT such a system? I'm sure a lot would be content to bump along on a deal close to the best without the hassle of having to check every 6-12 months as you do now. Do we really want to copy the way banks do business with savings accounts and things??? REALLY?

Totally agree with that. It's something that should be banned, in my opinion (in all sectors). It's not an 'introductory offer', it's a deliberate attempt to get customers in the hope they then stay at the end and pay over the odds.

magyar

davidgmmafan wrote: »

Finally I wounder if someone could clarify what exactly is proposed. It maybe the person writing the info was confused but I generally read the BBC news on the morning on my Virgin Media box. That was saying something about standard tariffs, but even that mention six per company. It was something like one for electricity, one for gas, one for dual fuel, one for DD, prepayment etc etc. I can't see how this differs particularly from the current system particularly if they are allowed to have an unlimited number of fixed or reduce rate tariffs.

I am not sure but I *hope* the point is that the structure of the tariff is fixed by Ofgem, so even if there is a fixed tariff then you can choose e.g. 2 yr fixed price and then get quotes from all the suppliers. It means that comparisons should be much more accurate.

Cardew

grizzly1911 wrote: »

If you are a single fuel user with no choice I am sure an extension or double "low user" banding could be applied, if they wanted to.

How would they check - a physical inspection?

I could get elecricity from one firm(with the double 'low user' band) and gas from another.

There is no 'one size fits all solution'.

MoneyMiser

Can I just throw something out there, the current tariff system punishes lower users.

Can we not get rid of standing charge tariffs, and maybe have a three tied system for example...

Gas: 3.98p for up 6872kwh 5.25p up to 21,000 kwh then 7.25p for everything over 21,000kwh

Electricity: 7.98p up to 2000kwh 14.85 up to 5000kwh then 21.28p for everything above 5000kwh

Obviously I have just plucked these figures out of thin air but if the tiers were reversed then would this benefit the lower user and punish the higher user?

Just a thought.

MM

Cardew

MoneyMiser wrote: »

Can we not get rid of standing charge tariffs, and maybe have a three tied system for example...

punish the higher user?

Just a thought.

MM

The whole idea is to simplify tariffs!

Katie-Kat-Kins

lynzpower wrote: »

I wasnt a high user when I only used electric, as I recall my bills were a lot lower, paying about 38 per month for electric. ( althou this was a few years ago)

I now pay 35 pcm electric and 25pcm gas.

Well I guess you were either too terrified of the high bills to have your heating on or had a very well insulated house!

I don't think I use a particularly high amount of electric now but I am very careful. I probably spend only a little more than friends with gas central heating but my house is much colder and I have to be much more frugal with my heating and pay much more attention to how I use it than someone with GCH who can simply stick their thermostat to 19C and leave it.

The fact is that heating via electric is more expensive than gas, and those without gas already miss out on some of the best deals available.

magyar

harrowing. wrote: »

It's easy to complain that the "switch tariff" government advice is obvious when we're sitting in a money saving website that discusses it every 5 seconds. Not all the public is so clued up. Cameron should back up his "grand words" with a leafleting campaign or tv infomercial explaining how you can switch (and not just by internet, as it scares some people).

... which is what he's promised to do.