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MSE News: Energy firms must offer (not give) cheapest deals, says Ofgem

in Energy
96 replies 6.4K views
"Regulator Ofgem plans to force suppliers to offer their cheapest tariff to customers, in the latest energy development ..."
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  • ConsumeristConsumerist Forumite
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    Ofgem will consult on a package of plans, which include:
    . . .
    A trial to make suppliers tell vulnerable consumers and those who haven't switched for a long time about the cheapest tariff across the whole market.
    . . .
    I'm all in favour of simplifying tariffs but I don't see this provision making it through the consultation.

    It's unprecedented to force a business to effectively promote a rival's product. I would, ordinarily, regard such a promotion with grave suspicion.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • WywthWywth Forumite
    5.1K Posts
    Ofgem will consult on a package of plans, which include:
    • ...
    • Stopping providers from charging different rates depending on how much energy they consume. Currently, some charge more for the first set of units which means low users pay disproportionately more
    Your interpretation appears somewhat different to that stated in the official Ofgem press release (link given in this earlier thread)
    http://forums.moneysavingexpert.com/showthread.php?t=4240447

    Ofgem's press release states:

    2. Ofgem’s proposals for consultation include:
    Simpler – making it easier to compare suppliers
    [FONT=Verdana,Verdana][FONT=Verdana,Verdana]
    ...
    iii. All tariffs have a standing charge and unit rate.
    [/FONT][/FONT]


    i.e. Ebico would not object to your interpretation, but will not be at all happy with the Ofgem stated proposal.
    Ebico tariffs already offer a single rate and no daily standing charge. They, with the support of their customers, do not wish to impose a daily standing charge on their customers.
  • premierfellapremierfella Forumite
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    Most of what is planned makes perfect sense and should have been done years ago.

    However, low users will clearly feel the pain if Ofgem forces the energy companies to return to standing charge and single unit rate (I'm a low user, so I'll be letting them know as part of their "consultation"). I can see why they've gone down this road though (as otherwise their comparison tool would remain complicated and fuzzy).

    There is still hope though. The press brief doesn't seem to completely rule out no standing charge tariffs (although this is clearly what the regulator seems to want), but rather indicates that tariffs must be presented with standing charge and unit price. Obviously there will be one unit price (i.e. no more "higher" rate tier on first x units) but Ofgem may still allow single unit (above average) price and nil or nominal standing charge if firms chose that as one of their four tariffs?
  • edited 19 October 2012 at 2:30PM
    malcolmffcmalcolmffc Forumite
    339 Posts
    edited 19 October 2012 at 2:30PM
    Expect to see all the cheap fixed tariffs vanish the moment these proposals are implemented.

    I really don't understand why consumers who are pro-active enough to find the best deal for themselves (and check regularaly that it is still the best tariff) should have to pay more because the majority of the population can't be arsed to spend 15 minutes on uSwitch once a year.

    All this talk of "confusing" bills is nonsense - it's primary school maths for goodness' sakes! People need to make take more responsibility for thier financial well-being
  • penrhynpenrhyn Forumite
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    malcolmffc wrote: »
    Expect to see all the cheap fixed tariffs vanish the moment these proposals are implemented.

    I really don't understand why consumers who are pro-active enough to find the best deal for themselves (and check regularaly that it is still the best tariff) should have to pay more because the majority of the population can't be arsed to spend 15 minutes on uSwitch once a year.

    All this talk of "confusing" bills is nonsense - it's primary school maths for goodness' sakes! People need to make take more responsibility for their financial well-being

    My thoughts exactly.
    That gum you like is coming back in style.
  • victor2victor2 Forumite, Ambassador
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    malcolmffc wrote: »
    I really don't understand consumers who are pro-active enough to find the best deal for themselves (and check regularaly that it is still the best tariff) should pay more simply because the majority of the population can't be arsed to spend 15 minutes on uSwitch once a year.

    All this talk of "confusing" bills is nonsense - it's primary school maths for goodness' sakes!

    It's really not a case of consumers who can't be arsed and it's certainly beyond primary school maths.
    Perhaps you could explain at a primary school level, how the readings on their gas meters are converted to kWh, before you get on to the simplicity of how it's billed.

    I’m a Forum Ambassador and I support the Forum Team on the In My Home MoneySaving, Energy and Techie Stuff boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. 

    All views are my own and not the official line of MoneySavingExpert.

  • welsheewelshee Forumite
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    malcolmffc wrote: »
    Expect to see all the cheap fixed tariffs vanish the moment these proposals are implemented.

    I really don't understand why consumers who are pro-active enough to find the best deal for themselves (and check regularaly that it is still the best tariff) should have to pay more because the majority of the population can't be arsed to spend 15 minutes on uSwitch once a year.

    All this talk of "confusing" bills is nonsense - it's primary school maths for goodness' sakes! People need to make take more responsibility for thier financial well-being

    Here here .

    And if they cannot do it for themselves ask a relative, friend or neighbour.
    Surely they can ask someone for five mins of their time !
    :eek:
  • malcolmffc wrote: »

    I really don't understand why consumers who are pro-active enough to find the best deal for themselves (and check regularaly that it is still the best tariff) should have to pay more because the majority of the population can't be arsed to spend 15 minutes on uSwitch once a year.

    Why should the majority of the population including the elderly have to dig around to find the best Tariff?

    @ Welshee can you tell me how to convert units into Kwhr my grandmother would like to know?
  • poochpooch Forumite
    828 Posts
    victor2 wrote: »
    ...and it's certainly beyond primary school maths.
    You may be right based on this recent thread on the Student board :eek:
    http://forums.moneysavingexpert.com/showthread.php?t=4221663
    Perhaps more like degree level for today's kids ;)
    victor2 wrote: »
    Perhaps you could explain at a primary school level, how the readings on their gas meters are converted to kWh, before you get on to the simplicity of how it's billed.

    Obtain difference in meter readings

    Multiply by 2.83 to give you the number of cubic metres of gas used.
    (If you have a newer metric meter measuring gas in cubic metres you do not need to do this).

    Multiply by the temperature and pressure figure (1.02264).

    Multiply by colorific value (provided on the bill, typically somewhere in the range 37.5-42.5)

    Divide by 3.6

    :)
  • pooch wrote: »
    You may be right based on this recent thread on the Student board :eek:
    http://forums.moneysavingexpert.com/showthread.php?t=4221663
    Perhaps more like degree level for today's kids ;)



    Obtain difference in meter readings

    Multiply by 2.83 to give you the number of cubic metres of gas used.
    (If you have a newer metric meter measuring gas in cubic metres you do not need to do this).

    Multiply by the temperature and pressure figure (1.02264).

    Multiply by colorific value (provided on the bill, typically somewhere in the range 37.5-42.5)

    Divide by 3.6

    :)

    Wow! thanks for that i'll pass it onto my 84 year old Granny. Shell be grateful she can now work out how much gas shes using in kwhr.

    I'll just multiply my usage (cu mt) by 11.6 its roughly where i want to be.
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