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Suppliers: Competing Doing Nothing
Finally even the CEO of BG has admitted that the Suppliers do nothing.
They simply operate the former billing and collection processes, passing on upstream costs and adding a margin for that privilege.
They don't even meter read relying on third party operators.
They simply set a price to cover costs and add £50 profit. Most of their customer base is legacy or acquired by absorbing the previous players or by merger.
The controllable cost base is so small that price competion is totally pointless and non existent other than the shameful con that the static customer has been charged a penal rate for their non movement.
The upfront marketing is a totally wasted cost given its obvious failure to move the market and there has been no one company who has made a step change to capture market share over the many years.
Even billing and collection has become a shambles with new system expenditure providing only chaos and confusion.The new systems predicated on the range of tariff options to bill gas and electricty units in different invented and unnecessary packages.
It must be about the simplest business model around which actually adds no value to anyone other than a nice low risk earner.
I just wonder why it took Mr.Bentley,the Regulator and all the politicians so long to come clean ?
They simply operate the former billing and collection processes, passing on upstream costs and adding a margin for that privilege.
They don't even meter read relying on third party operators.
They simply set a price to cover costs and add £50 profit. Most of their customer base is legacy or acquired by absorbing the previous players or by merger.
The controllable cost base is so small that price competion is totally pointless and non existent other than the shameful con that the static customer has been charged a penal rate for their non movement.
The upfront marketing is a totally wasted cost given its obvious failure to move the market and there has been no one company who has made a step change to capture market share over the many years.
Even billing and collection has become a shambles with new system expenditure providing only chaos and confusion.The new systems predicated on the range of tariff options to bill gas and electricty units in different invented and unnecessary packages.
It must be about the simplest business model around which actually adds no value to anyone other than a nice low risk earner.
I just wonder why it took Mr.Bentley,the Regulator and all the politicians so long to come clean ?
0
Comments
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Brilliant post. Agree 100%.0
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In financial terms Mr.Bentley explains their operating costs are £100 per customer.
Billing and Collection costs, staff and Exective salaries.
Little added value to which they mark up a further 53%.
Still think this is fair for an inherited non competitive business?0
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