MSE News: Ofgem outlines plans for simpler energy tariffs

brightonman123

but will they be simplier, or CHEAPER?

Consumerist

brightonman123 wrote: »

but will they be simplier, or CHEAPER?

Ofgem reports that 75% of energy customers are on standard tariffs so 75% of customers are likely to find it CHEAPER if they switched.

MillicentBystander

dude89 wrote: »

psdie wrote: »

An idiotic idea - there's nothing complicated about it if you use a comparison site with your existing usage data. "Simplification" is just a euphemism for price rises.
QUOTE]

The problem being is that if everyone did this then there would still be price rises as the companies would have no one left on standard tariffs to cover the costs of the cheapest tariff

Precisely. Which is why Huhne's advice to switch to a cheaper tariff is a total cop out! Fact is, if just 10% of the currently 75% of households paying a standard tariff switched to the cheapest online deals the price of the online deals would definitely rise! Phil Bentley has let the cat out of the bag big time - now everyone knows what many of us on here have suspected/known for a long time - that we get our cheap tariffs at the cost of the people on standard tariffs getting ripped off! It just isn't the way to run a business supplying such an essential product. It has to stop and, for once in my life , I congratulate BG for being the first of the Big 6 to recognise that.

Consumerist

MillicentBystander wrote: »

. . . we get our cheap tariffs at the cost of the people on standard tariffs getting ripped off! It just isn't the way to run a business supplying such an essential product. It has to stop and, for once in my life , I congratulate BG for being the first of the Big 6 to recognise that.

The energy suppliers have seen how the banks get away with product generation to get new customers on good short-term rates and are copying their methods. They won't change until they are made to.

You can bet your boots the energy suppliers are already looking for ways around any proposed new licence conditions which they will introduce after the RMR has changed the licence conditions. Unlike Ofgem, they will be able to do this without consulting anyone.

MillicentBystander

I actually would take it further and make energy companies prove that their cheapest tariff is not in any way subsidised by their standard tariff customers! We all agree an online tariff *should* be cheaper than a standard tariff, but IMO each of those tariffs should be based on what the tariff costs the energy company and not what they think they can get away with charging one set of customers so they can offer their potential new customers a deal based on subsidies. The current average £300 difference is frankly embarrassing and clearly not right.