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

spot1034

lazyjack wrote: »

OK, here's a good example of why something needs to be done with regards to the tariffs.

Just received a notification of price increase today from Npower, 14.1% increase on Elec and 16.1% on Gas. So, I decide to have a look at the details and here's what I find:

* Current annual bill with Sign Online 24 tariff is £1013
* New annual bill based on same usage will be £1152, a hefty £139 increase

However, if I switch tariff to Energy Online Jan 2014, still with Npower, my annual bill will be £1055 (£42 increase), which is not unreasonable.

The point being, why do Npower simply whack on a big increase without offering me what is clearly a cheaper tariff (they have 3 years of usage figures) ? Obviously they rely on people simply accepting the increase and paying more than they should.

I am able to do the sums and work out what's best for me quite quickly, others don't find it so easy. The energy companies should be doing the sums and at least pointing people in the right direction.

That's what many are saying - however, the company needs to maintain profitability, and the cheaper tariff you refer to will almost certainly have a pre-determined capacity and will be withdrawn when that number of customers is reached. It isn't the case that all customers could be on that cheap tariff. They offer the cheaper deals in the hope that some people will stay with them after they end. No different to a supermarket offering an item at a loss for a couple of weeks in the hope that you'll get into the habit of going back to buy more when they put the price back up.

jalexa

lazyjack wrote: »

The point being, why do Npower simply whack on a big increase without offering me what is clearly a cheaper tariff (they have 3 years of usage figures) ? Obviously they rely on people simply accepting the increase and paying more than they should.

Ah, you have given what I suspect is a good answer, though there may be another answer connected to the Sign Online 24 Terms and Conditions you accepted.

I prefer a different question, why did you not give notice to reject the increase and then initiate a switch? Had you done that the moment you were notified you could have initiated a switch to your choice of Scottish Power or Edf fixed rated tariff to spring 2014 at pre-increase pricing, without liability NPower early termination charges.

Of course you might have forfeited your NPower "deferred discount":eek: which is another matter entirely.

lazyjack

jalexa wrote: »

Ah, you have given what I suspect is a good answer, though there may be another answer connected to the Sign Online 24 Terms and Conditions you accepted.

I prefer a different question, why did you not give notice to reject the increase and then initiate a switch? Had you done that the moment you were notified you could have initiated a switch to your choice of Scottish Power or Edf fixed rated tariff to spring 2014 at pre-increase pricing, without liability NPower early termination charges.

Of course you might have forfeited your NPower "deferred discount":eek: which is another matter entirely.

I don't remember stating that I have already made the switch.......

jalexa

lazyjack wrote: »

I don't remember stating that I have already made the switch.......

You didn't, which was the point of my question. You seem to have blind faith in an NPower that not many here trust one inch.

lazyjack

jalexa wrote: »

You didn't, which was the point of my question. You seem to have blind faith in an NPower that not many here trust one inch.

Why is it blind faith in Npower ? I think you'll find the 'big 6' are as bad as each other, I've been with them all at some point and can honestly say that Npower have been the best to deal with when I have called them up. Choosing the cheapest energy supplier actually makes quite a lot of sense to me.

jalexa

lazyjack wrote: »

I think you'll find the 'big 6' are as bad as each other,

I think it is generally accepted here by most long standing posters that NPower is the "lowest of the low". Perhaps because of behavior like this...

http://www.dailymail.co.uk/news/article-2223658/Homeowner-mis-sold-gas-Npower-salesman-person-win-harassment-payment-energy-giant-sent-10-debt-collection-agencies-him.html