Only 2 Tariffs?!

SnakeDoctor_2

Well it's good news that things MIGHT get a LITTLE simpler. Two tariffs (1 x fixed and 1 x variable) from each supplier will make price comparison much easier. But whats to bet that they will still make life not so easy by advertising their 'easier to understand' tariffs but then say that they will give a small discount for paying by DD and another small discount for having paperless bills etc.
Life will never be as simple as just two tariffs, they will find a way to make it more complex. It's in their interests for us not to understand their pricing structure.

macman

Price comparison is already straightforward using a comp site. It require 3 pieces of info: your annual gas kWh consumption, your annual electricity kWh consumption, and your postcode. Not too onerous for most people

jalexa

SnakeDoctor wrote: »

Life will never be as simple as just two tariffs, they will find a way to make it more complex. It's in their interests for us not to understand their pricing structure.

Indeed, but as macman pointed out its already a simple comparison website process. A move to "simple choice of two" threatens comparison websites, something a perceptive Newsnight viewer would have noticed when this was discussed a few days ago.

Now which party would that benefit?

SYNERGY

SnakeDoctor wrote: »

Well it's good news that things MIGHT get a LITTLE simpler. Two tariffs (1 x fixed and 1 x variable) from each supplier will make price comparison much easier. But whats to bet that they will still make life not so easy by advertising their 'easier to understand' tariffs but then say that they will give a small discount for paying by DD and another small discount for having paperless bills etc.
Life will never be as simple as just two tariffs, they will find a way to make it more complex. It's in their interests for us not to understand their pricing structure.

My only interest is finding the cheapest cost per annum for my gas and electric.

I know my average annual consumption, which most would be able to find out.

If there were only two tariffs, I don't see the difficulty in sitting down with a cheap calculator and finding my expected annual cost. Something I do as well as using the comparison sites.

Ref discounts for DD or paperless bills, why not, great, it suits me, it simply means a reduction for my utility costs.

Airmike23

The big problem is you get these people with their spreadsheets for unit rates to compare them - completely forgeting about the way standing charges or tier one unit rates work, and ignoring discounts for dual fuel mdd etc - after they've been on a comp site to do a comparison, it doesn't help that depending on the way you answer a certain question on some sites, you don't get any results for current supplier, but on the whole I think this is a way for all the energy companies to introduce another price increase, without actually having to put the prices up!

MillicentBystander

75% of the UK's households remain on standard tariffs. BG's MD has admitted that their previous business model involved effectively ripping off loyal, 'honest' (his word) customers in order to fund the acquisition of new customers by way of loss leading, short lived tariffs. This is not the way to run a business that provides one of life's essentials IMO. I'm sure the rest of the Big 6 will follow BGs lead. It's alright Huhne telling people to switch to save money - if even just 10% of that 75% on standard tariff switched to a much cheaper (subsidised!) tariff the only result would be online tariff prices would increase substantially.

oldskoo1

I do find the whole tariff thing complete rubbish.

When i was with BG they were releasing new tariffs every few months. Web saver 1 - 9, certain discounts for paperless billing, duel fuel, standard tariffs, i can't even remember but there must have been hundreds of different options over 3 or 4 years.

It was ridiculous. I just want 1 simple tariff, that stays the same all the time and if the price increases so does my current tariff. That is why i went with the co-op. They are practically the cheapest anyway.

Pincher

Talk about one horse town, it's like living in Basingstoke.