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

backfoot

jalexa wrote: »

However I don't believe that there isn't a panoply of advice available to the vulnerable. I may (or may not) have particular energy expertise but I have never found switching required either energy expertise, "IT literacy" or time. The last switch took minutes to initiate and proceeded fairly smoothly. May have resulted in a full year's direct debit woes but is another matter.

If only the population all had access and inclination or weren't scared. Yes, of course the comparison site process itself is easy for you and me. I know many normally competent people who are reluctant to do the right thing. (75% tells us something).

If the non take up is so large,finally the moral argument has to take precedence and false differentiation can't be sustained. People shouldn't be penalised for something like energy should they, because the authorities created this daft system?

Within the process,you of all people know the tricks, which aren't made clear in the comparison process. Exit fees, misleading product descriptions, back end discounts, irregular price increase timing. People have rightly lost confidence.

Then fixed or variable? That's not an easy decision and I have spent hours modelling which is best.

So, while I dislike the whole shambolic process, I am clear that Ofgem's changes are a minor step in the right direction. It will make us less valuable advisors here and we personally won't benefit, but that's probably a good indication that it was wrong before.

victor2

jalexa wrote: »

.... I may (or may not) have particular energy expertise but I have never found switching required either energy expertise, "IT literacy" or time. The last switch took minutes to initiate and proceeded fairly smoothly.....

While I agree it is theoretically possible to switch without being at all IT literate, how would non computer savvy people know where to even start?
Forums like this are of course a great source of information, but take away the computer and there is so litle available in the more traditional forms of media.

I can track my own energy usage in a far more detailed and meaningful way (to me anyway) than my bills indicate, but by computer...

TehJumpingJawa

Privatisation was a stupid stupid idea.

penrhyn

TehJumpingJawa wrote: »

Privatisation was a stupid stupid idea.

What makes you think that public ownership would bring about cheaper prices, no-one is immune to market forces.

backfoot

penrhyn wrote: »

What makes you think that public ownership would bring about cheaper prices, no-one is immune to market forces.

This model certainly hasn't worked either in terms of price competition or customer service standards. For the privilege we pay a profit margin which didn't exist before.

Nor would we have paid for all the new IT infrastructure or the front end marketing guff that now exists.

So yes there is every chance things would have been cheaper. Targetted efficiency programmes actually worked very well for a good period of time. RPI- X %. That created the equivalent or actually better than market forces.

The ESI,imho, worked very well as 12 area boards with many inter board comparative measures to monitor financial and engineering standards.

Unfortunately, the ESI got unfairly lumped in with other failing state controlled organisations.

We now have the same end product (units of energy) being sold to us at varying prices. Why? Is it any surprise that the big six come up with nearly the same best price other than timing issues.

MillicentBystander

backfoot wrote: »

This model certainly hasn't worked either in terms of price competition or customer service standards. For the privilege we pay a profit margin which didn't exist before.

Nor would we have paid for all the new IT infrastructure or the front end marketing guff that now exists.

So yes there is every chance things would have been cheaper. Targetted efficiency programmes actually worked very well for a good period of time. RPI- X %. That created the equivalent or actually better than market forces.

The ESI,imho, worked very well as 12 area boards with many inter board comparative measures to monitor financial and engineering standards.

Unfortunately, the ESI got unfairly lumped in with other failing state controlled organisations.

We now have the same end product (units of energy) being sold to us at varying prices. Why? Is it any surprise that the big six come up with nearly the same best price other than timing issues.

This. Being saying it on here for ages, there's massive duplication in the industry as it stands compared to a nationalised one. Compared to if the industry was stiill nationalised we have extra: 5x hugely expensive IT systems (BG's IT system reportedly cost half a BILLION pounds and was so unfit for purpose they sued the company that supplied it), 5 x hugely rewarded CEOs, SIX x sales depts, 5 x CS depts., a simply massive parasitic industry that gives financial incentives for switching and we all know where the money for that comes from don't we? Etc etc. But at least we are saving on spending in one area now - STORAGE FACILITIES! Shakes head. Stupid.

wantanswers

What's all this about then?

DAVEY: NEXT STEPS ON COLLECTIVE PURCHASING FOR A BETTER ENERGY DEAL

PRESS NOTICE 2012/064

Sounds Interesting!

http://www.decc.gov.uk/assets/decc/11/meeting-energy-demand/energy-markets/4734-open-letter-from-the-secretary-of-state-to-energy-.pdf

http://epetitions.direct.gov.uk/petitions/32005

wantanswers

Does anyone know the outcome of the 'Big Switch'

http://www.thisismoney.co.uk/money/bills/article-2097605/The-Big-Switch-Households-offered-chance-group-buy-cheap-gas-ad-electricity-Which.html

Was it a success?
Are those who signed up satisfied?
Were significant cost savings achieved etc etc?

wantanswers

Seems to be getting interesting:

20 July 2012
Local Authority Chief Executives
COMMUNITY ENERGY SWITCHING AND BULK BUYING

http://www.decc.gov.uk/assets/decc/11/funding-support/5944-letter-from-edward-davey-to-local-authority-ceos-o.pdf

backfoot

For me this is further recognition that the current market is not promoting price competition.

Ofgem's consideration of such schemes and organised local government bulk buying schemes are a desperate effort to kick start some pressure on price and get the market moving. It clearly has the hand of the politicians driving it.

I didn't follow the big switch closely but I believe it was watered down from its original target numbers and the savings,if any, were small.

This mechanism is used in the industrial and commercial market by Group buyers on an auction type basis, where capturing Big group business is quite competive and there is more active competiton.