Utility Warehouse (Telecom Plus) Discussion

Cardew

Well I never!

So UW increased their prices by 34.4% for gas and 11.3% for elect on 02 Sep 2008( and electricity had already gone up 3.1% 2 weeks earlier on 14 Aug 2008)

So they they reduce them by 2.3% and 2.6%.

No wonder UW reps were not keen to talk about percentage price cuts - embarrassed? of course they are embarrassed, yet all we get from UW reps is:

"it doesn't really matter" -

"whats the point" -

"Any price reduction is just icing on the cake" -

"to speak of average isn't really any use" -

"the %change is irrelevant"

Even the harshest critic of the Big 6 reductions concedes " a bigger decrease would have been nice"(how genteel!) but then goes on to bring First Utility into the discussion as yet another diversionary tactic.

Strangely no media announcemnts about the cuts??

Got to get that message into the media somehow!!! Don't UW customers need to be informed?

Plushchris

LOL @ being thanked by UW reps for pointing out how small the price drops were.

vinnyph

haven't all the other companies not reduced prices much either. Its just in line with the rest of the industry.

bigger cuts won't come across the industry until the big 6 have clawed back their losses made before the prices went up. The wholesale prices have lowered considerably but thats only part of the story,

UW don't advertise so why would it go out in the media.

The prices are in line with the guarantee.

Bigger cuts would have been nice but I am not embarrassed by the cuts. I didn't make them. I wasn't expecting huge changes because the other companies didn't change much either. True.

The UW customers are being updated with the price changes directly.

What were you expecting 30% decrease by UW even though the rest of the industry have only reduced down a few percent.

The other point is whether those price reductions are based on the actual prices people pay or the prices that the price comparison site prices. The additions they make will dilute the percentage reduction. Its a lot of work to calculate which is right though.

Plushchris

vinnyph wrote: »

The other point is whether those price reductions are based on the actual prices people pay or the prices that the price comparison site prices. The additions they make will dilute the percentage reduction. Its a lot of work to calculate which is right though.

What additions?

I would have thought that percentage is arrived at from Unit rates.

SwanJon

NigeWick wrote: »

I pay the same as any other customer.

NigeWick wrote: »

What's the point? Even without any price reduction my utility bills still worked out cheaper with Utility Warehouse than with any other provider. Any price reduction is just icing on the cake.

NigeWick wrote: »

However, as an Independent Distributor, I get paid for the customers I have gathered. I am a customer of Utility Warehouse signed up by me. Therefore I get paid a small percentage of my usage every month for as long as I stay a customer. The utilites cost me the same as any other customer.

Ok, so we have a UWD saying they pay the same as everyone else based on the unit prices (so as not to include the distributor 'discount'), but also saying that their bills are cheaper, but to do this they have to disregard the unit price and look at the whole package. Flexible, non?
(Off to google prepaid cards...)

vinnyph

wholesale energy prices are related to crude oil price. The crude oil price went up to $147 a barrel, it went down to $35 recently but could easily bounce up again sharply. Wholesale energy prices have been very volatile for a few years. The big 6 companies are waiting to see what happens before another reduction comes. What the average industry charge will effect what UW can charge.

A few years ago when the energy prices were very stable UW used to buy direct from market with the 2 companies gas plus and electricity plus. At that time UW were the cheapest tariff in the country every month for 5 years before 2005. The rate for gas was 1.138p. However the market place became volatile and it was impossible to get good long term prices for wholesale energy, something had to be done. So UW struck a deal to provide through npower for 4 years. This has been in place for a few years now but is due to end later this year. Not sure exactly what will happen then. I think there are more reductions for the industry later in year but not sure exactly how that will pan out, its just speculation at this stage.

Cardew

vinnyph wrote: »

haven't all the other companies not reduced prices much either. Its just in line with the rest of the industry.

As they say in the pantomime - which is appropriate for this thread - "oh no it isn't"

bigger cuts won't come across the industry until the big 6 have clawed back their losses made before the prices went up. The wholesale prices have lowered considerably but thats only part of the story,

I am not sure carmine will agree with you - he has spend huge amounts of time saying the industry have ripped us off.

UW don't advertise so why would it go out in the media.

Getting input to the media doesn't need to involve adverts - why only a couple of days ago you were all giving links to the FT on UW's success - all other firms gave press releases.

The prices are in line with the guarantee.

But as is pointed out time and time again it is an absolutely worthless guarantee.

Bigger cuts would have been nice but I am not embarrassed by the cuts. I didn't make them.

Oh come on - not just a teeny weeny bit embarrassed? You really should be!

I wonder what the letter to UW customers will say?

vinnyph

Plushchris wrote: »

What additions?

I would have thought that percentage is arrived at from Unit rates.

The price comparison site prices they quote are usually higher than the amounts the customer pays. This isn't just the case where they count the membership fee twice for dual duel for instance either.

I would guess they would calculate the amount from the low user, standard user, and high user industry profiles and then average. If the price is wrong in the first place for new and old prices because the prices they use are higher because of an additional amount the percentage change would appear slightly less than it is. We don't know if the price comparison site has calculated those prices from their own comparison data for UW or used an average calculated from UW. I haven't seen an average given out by UW so I don't know.

vinnyph

Cardew wrote: »

I wonder what the letter to UW customers will say?

Is it a case that you would like us to be embarrassed?

Personally I don't get embarrassed easily. I never go red and blush. Its women who tend to get embarrassed. The whole industry haven't changed their prices much, you want me to be embarrassed for that as well. Do you blame UW for the whole industry?

I am 6'5" and built like an oak tree. Tell me do I sound like the sort of person who gets embarrassed.

Do you think charles wigoder is embarrassed. Do you think he thought, better not put the new prices up on TV tonight else cardew might just snigger. You been on the daft juice today.

I would like to see better prices but I am not in charge of the whole industry.

vinnyph

Got someone to go and see in a few minutes to sign up so have to go now.