MSE News: SSE simplifies energy tariffs

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"From this morning, energy provider Scottish and Southern will offer just four core products, down from 68 previously ..."

Read the full story:
SSE simplifies energy tariffs

jalexa

"Alistair Phillips-Davies, generation and supply director at SSE, says: "Buying energy has become too complex. In October, SSE committed to end the complexity that surrounds tariffs and significantly reduce the number of tariffs it offers..."

If that means the end of the phrase "fixed discount" in a SSE tariff then welcome news. The cynic in me says that the undertaking quoted is only to reduce the "number of tariffs".

LewisR

Yep - 'simplification' is something, but on its own it doesnt mean a better deal for bill payers. The rest of the big 6 will follow suit, but chances are it will just mean slightly more expensive for most. The one good thing is it might reign in the profits of switching sites, which rake in about £40 per switch - largely because people are so baffled by the 400 tariffs on offer that the service seems worth it, even though it is a ridiculous cost.

It will probably also make group switching - billpayers switching collectively in large numbers for a better discount - more straightforward. The two main group switching options at the moment are thepeoplespower.co.uk and the Which? Big Switch.
Think Which? is on the standard £40 commission which is a shame, but thepeoplespower say they'll only take £2 commission to pass more saving on to subscribers.

SnowMan

Welcome news and SSE are to be applauded for this. Looking at their press release you have to broadly agree with their wider vision that extends past just making products simpler to issues such as avoiding predatory pricing and ensuring greater transparency on energy costs.

I was with SSE until recently and their customer service was excellent. They have been subject to some scandals such as the doorstep mis-selling and their tarriffs had become very complicated also.

So while it is reasonable to be cautious about what they say and time will tell if they do what they say, we should support what they are saying. It is difficult for them to unilaterally change if the other providers continue with their predatory pricing etc so it does need some industry concensus.


There is a bit of analogy with what has gone on in the credit reference industry. Callcredit made credit files available to customers through noddle. It always seemed a complete nonsense that you should have to pay to check and if necessary correct your own credit file. Hopefully the other credit reference agencies will follow suit and do the right thing also. That doesn't mean we don't need to be wary of what callcredit are doing, but they should be given some credit (no pun intended).

Similarly we should approach this announcement from SSE with caution but broadly at the same time give SSE the benefit of the doubt until they show otherwise that they are trying to do the right thing.

There are the threats of tighter regulation that may have lead to SSE saying what they have said but again that isn't a reason to dismiss what they are saying out of hand.

Stephen_Leak

I'm currently with SSE. I've looked at switching, but it's to my advantage to stay with them for the time being. I haven't had to put their customer service to the test. My DDs were set up promptly and accurately, and are being taken on time. So far, so good.

SSE do seem to be trying to be playing fair with their customers, and deserve praise for this. OK, the cynic in me also knows this makes sound commercial sense. They are a business, not a charity.

I still trust them as far as I could spit their head office, but I'm part Scottish and I don't trust anyone with my money!

jalexa

jalexa wrote: »

"Alistair Phillips-Davies, generation and supply director at SSE, says: "Buying energy has become too complex. In October, SSE committed to end the complexity that surrounds tariffs and significantly reduce the number of tariffs it offers..."

If that means the end of the phrase "fixed discount" in a SSE tariff then welcome news....

Oh dearie me. "Fixed discount" still appears on the SSE website. Shame.

Any members care to say what they think "fixed" means in a tariff name.

backfoot

Subject to looking at price, I agree with the analysis of Snowman.

flyingjock1

jalexa wrote: »

Oh dearie me. "Fixed discount" still appears on the SSE website. Shame.

Any members care to say what they think "fixed" means in a tariff name.

Fixed discount as all their literature/website explains that the tariff unit prices are 2% below their standard energy unit prices. ie ie the unit prices arent set. if sse put the standard energy unit price up the cust has their charges increased less 2%. on the other hand if the unit prices are reduced they get a further 2% discount on top of the decrease. even though theyve used the phrase fixed, they couldnt have made it any clearer

alexlyne

Does anyone know when SSE plan to enact this 'simplification'?
I'm with Swalec on a fix until the end of march, and have just got some literature through on their prices going forward (i.e. post 4.5% discount or whatever they have announced) - can I throw this in the bin?

I'm disappointed that they are removing tariffs with no standing charge, as that means my £10 per quarter gas bill in the summer is going to go up... so sswitching may be my best option.

NittyGritty

they have introduced it now, just check their website, they only have 4 tarriffs now

NittyGritty

if your already a customer nothing will change (unless your on a fixed deal which is due to expire anytime soon, these new tarriffs are for new customers or if you want to change to any of them,

when march comes, just do a comparison to see whats the cheapest deal at that time