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MSE News: David Cameron: law will force energy firms to offer cheapest deals

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MSE News: David Cameron: law will force energy firms to offer cheapest deals

edited 30 November -1 at 1:00AM in Energy
51 replies 3.9K views
Former_MSE_HelenFormer_MSE_Helen
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edited 30 November -1 at 1:00AM in Energy
"Energy firms will be forced to give customers the cheapest available deal under new legislation, says the Prime Minister ..."
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Replies

  • This will simply drive up prices again for us rate tarts. But if they are, as Phil Bentley confessed, ripping off their loyal standard customers in order to subsidise our deals then fair enough.
  • Butterfly_BrainButterfly_Brain Forumite
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    Like we still won't be ripped off. Time to renationalise
    Blessed are the cracked for they are the ones that let in the light
    C.R.A.P R.O.L.L.Z. Member #35 Butterfly Brain + OH - Foraging Fixers
    Not Buying it 2015!
  • jobdone1jobdone1 Forumite
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    This will simply drive up prices again for us rate tarts. But if they are, as Phil Bentley confessed, ripping off their loyal standard customers in order to subsidise our deals then fair enough.

    I agree 100% this will in short make energy companies have one tariff as their will be no need to have any more because they will have to put ALL customers on thr same lowest rate.

    What will this do for us consumers yep you guessed it scrap all tariffs creat a one fits all and this will raise prices further.

    What the hell is wrong with this con - lib goverment they are so out of touch from the real world.
  • WywthWywth Forumite
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    Haven't E.on for one already prepared for this by replacing all their tariffs with just 5 to choose from?

    And somehow they are trying to sell us this as a marketing feature? :huh:
  • If the energy firms will be forced to give customers the cheapest available deal doesn't that mean they'll only be able to have far fewer tariffs because if their online tariffs all vary in price then they'll have to offer the cheapest thus they'll only be able to hav eon eonline tariff?

    Or is that too simplistic a view?
  • edited 17 October 2012 at 8:29PM
    lazyjacklazyjack Forumite
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    edited 17 October 2012 at 8:29PM
    All they need is a price for elec, price for gas. Then you can get discounts applied for dual fuel, monthly DD payment, paperless billing etc.

    Obviously you would have another elec tariff for E7 customers. Doing this would save huge amounts of administration costs.

    The way things are now it is clearly designed to confuse and also to rip off the loyal customers. Some elderly people are hardly going to keep up with all the tariff changes are they ?
  • CardewCardew Forumite
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    Since privatisation a huge 'parasitic industry' has been built up to persuade us to switch supplier. The comparison sites, Quidco etc and indeed MSE, are valued, and change hands, for many £millions.

    In addition to the commission the Utility companies pay these organisations, there must be huge overheads employing staff in the Utility firms to handle millions of customers switching.

    Considering the product(gas/electricty) we purchase is exactly the same and delivered in the same manner(pipes/wires) there cannot be much scope for one company to be much cheaper than another.

    I wonder just how much these overheads add to our bills.
  • ConsumeristConsumerist Forumite
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    lazyjack wrote: »
    The way things are now it is clearly designed to confuse and also to rip off the loyal customers. Some elderly people are hardly going to keep up with all the tariff changes are they ?
    I don't think this has anything much to do with loyalty but more to do with lethargy. It's much the same problem as with banking - we, the consumer, are largely reluctant to change so that the few who have the time and inclination get the benefits foregone by others.

    It seems likely that the energy companies will get their dirty-tricks departments working on this straight away to seek ways around any legislation.

    In principal, I don't see anything wrong with simple pricing systems but what's going to happen when smart meters are the norm and tariffs may depend on energy usage patterns? How would you standardise that? What would then be the "cheapest" tariff?
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • edited 17 October 2012 at 9:17PM
    flyingjock1flyingjock1 Forumite
    89 posts
    edited 17 October 2012 at 9:17PM
    Wont work! Wot about like companies like SSE that only have 3 tariffs. A standard, Fixed Discount and 2 year capped. The Fixed Discount is the cheapest as its unit prices are 2% lower than their standard prices. As its a contract and has a £50 cancellation fee they cant automatically put customers on it as they would be breaking the law by putting customers onto a tariff without their permission. Just one example. Any others suppliers with fixed tariffs as their lowest will be the same. Just more soundbites from the government.
  • edited 17 October 2012 at 9:24PM
    Nessie23Nessie23 Forumite
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    edited 17 October 2012 at 9:24PM
    Great so now all these companies will start by raising the prices or just eliminating their cheapest tariffs! :mad:
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