OFGEMs view of a simplier market

spiro

Been hearing about this on the BBC, does not sound disimilar to what the PM was talking about especially the bit about suppliers having to potentially tell customers about the best deal on the market.

http://www.ofgem.gov.uk/Media/PressRel/Documents1/20121019_RMR.pdf

MillicentBystander

This could adversely affect the switching sites. We can but hope....

chanz4

Some good points, however this is just going to increase prices for those on good deals as suppliers just wont offer them.

Also making all tariffs have standing charge, so for low users this means bigger bills

GooliesOfFire

chanz4 wrote: »

Some good points, however this is just going to increase prices for those on good deals as suppliers just wont offer them.

There are no good deals. There are the bad deals that don't get worse over the fixed period of time I don't see why price fixing wouldn't still work if you sign 1-2 year fixed tariff contract with your energy supplier.

Wywth

chanz4 wrote: »

...
Also making all tariffs have standing charge, so for low users this means bigger bills

Ebico are not going to be happy with this

https://www.ebico.org.uk/blog/2012/02/24/a-letter-to-ofgem/

I wonder if Phil Levermore will embark on a "Richard Branson" mission over this?

chanz4

GooliesOfFire wrote: »

There are no good deals. There are the bad deals that don't get worse over the fixed period of time I don't see why price fixing wouldn't still work if you sign 1-2 year fixed tariff contract with your energy supplier.

Because to offer the same level, they would have to ensure they make the same profit come on they aint going to take a dip. So all they will do is withdraw fixed / discounted and just give standard with discounts.

wantanswers

GooliesOfFire wrote: »

There are no good deals. There are the bad deals that don't get worse over the fixed period of time I don't see why price fixing wouldn't still work if you sign 1-2 year fixed tariff contract with your energy supplier.

See you are on EDF energy blue.

Funnily enough just been propositioned by them to switch... Afraid not their quoted savings didn't tally....it really gets confusing doesn't it?

Just think if i never had checked I might have jumped! Bet lots do though and live to regret it!

Sueinbirmingham

Wywth wrote: »

Ebico are not going to be happy with this

https://www.ebico.org.uk/blog/2012/02/24/a-letter-to-ofgem/

I wonder if Phil Levermore will embark on a "Richard Branson" mission over this?

One option might be for them to charge a nominal standing charge. Unless Ofgem specify what it has to cover, what's to stop them charging £1/year or part thereof standing charge and keeping the same pricing system as they do already for the rest of the units?

GooliesOfFire

wantanswers wrote: »

See you are on EDF energy blue.

Funnily enough just been propositioned by them to switch... Afraid not their quoted savings didn't tally....it really gets confusing doesn't it?

Just think if i never had checked I might have jumped! Bet lots do though and live to regret it!

I switched from British Gas Standard to EDF Energy Blue.. No big drama and I'm better off than last year with BG anyway. I didn't pay much attention to EDF quote and promised savings compared to BG. I looked at their tariff rates and I counted everything knowing my energy consumption and compared all by myself. Next time I will check all 6 energy suppliers though. I think I missed out here a bit by not comparing all (i.e. Scottish Power offer at the time).

Terrylw1

Yeah, Ofgem's response to being told to do this by the government.

One of the comparison sites was giving a statement explaining how it wouldn't make things better and result in the opposite effect of higher prices to all. Would we believe them since their profits would be affected by things being easier for consumers?

It would result in flatter structures but you can bet money on suppliers bringing rates up to create such a structure..also again the government & Ofgem fail and the suppliers win.

C_Mababejive

The big suppliers will love it. It will be a chance to increase overall income and all becuase thousands of people are too stupid to do some simple maths.