All homes to be put on cheapest energy deal?

Cardew

Wywth wrote: »

How would that be a good thing? :huh:

Because they are parasitic; and encourage 'churn'.

grahamc2003

Toki wrote: »

Agree with what people have said in here already, this won't be good for MSE people as it'll mean the end to the cheap tarriffs if this goes ahead. It may benefit the majority who can't be bothered, not savvy enough or are rich enough not to care, but will mean the people who take the time to research tarriffs will lose out, bad move for most of us!

Clearly, the cheapest tariffs will go, as will the most expensive. Clearly, those who have the werewithal to get the cheapest tariff will lose out and clearly those who by accident or design don't know their way around cheap tariff will gain. In the last group are many many disadvantaged people who's lives are hard enough even without the burden of paying the highest tariffs.

I won't complain a bit about paying a little more so those less furtunate than me can pay a little less. I always think 'there but for the grace of God go I' in a sort of non religious way.

Cardew

A Government sponsored organisation like the Energy Saving Trust could set up a single comparison network that would give factual information without the cashback/champagne/stamps incentive to switch - often to a more expensive/unsuitable tariff.

It is not only the money leaking out of the industry - Uswitch was sold in 2007 for US$366 million - but the huge overheads of Utility companies employing staff to handle switching accounts.

LesU

Does the altruistic 'paying more' extend to supermarket shopping, buying white goods etc etc.
I'm sure in all of those circumstances you can see the less savvy shoppers paying over the odds. I think they should employ extra staff in supermarkets to guide the confused shopper to the cheapest deals for their goods. Paid for, of course, by all of the other customers in the store.;)

On the subject of simplifying the tariffs. Is there any restriction on how many tariffs you can have in a year? It may be 4 at a time, but Scottish Power has shown it can roll new ones out almost weekly.
I still don't see how it can be restricted to only 4 if Economy 7 is an option.
Is gas + electric considered a separate tariff compared to gas or electric only?

SwanJon

My guess (and that's all it is) is that it would be 4 (or n) tariffs availble for your circumstances.
If you are on E7 you would have 4 E7 tariffs available
If you are on single rate you would have 4 single rate tariffs.

Until smart is really up and running there will be a big difference between switching tariff within one of these and crossing over and so they can be treated seperately.

However, if you are on one of the more obscure legacy tariffs (E10, E17 etc) you will probably have the same number of tariff options as now - one.

Cardew

SwanJon wrote: »

However, if you are on one of the more obscure legacy tariffs (E10, E17 etc) you will probably have the same number of tariff options as now - one.

At least it will conform to the Government's directive and be the cheapest available;)!

mattcanary

What about prepayment customers? I'm assuming that that will count as one of the tariffs? Or will suppliers be forced to take out prepayment meters free of charge?

ollski

As Weller would say "the public get what the public (think they) wants.

Wywth

grahamc2003 wrote: »

Because it would stop probably tens of millions of pounds leaking out of the industry - and of course that cash is currently added onto our bills.

Hmmm... yeah, give it to the shareholders instead :cool:

Wywth

Cardew wrote: »

Because they are... encourage 'churn'.

Well they obviously arn't doing it well enough if they have to introduce this legislation.