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MSE News: Government's cheap energy plan unveiled

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  • penrhyn
    penrhyn Posts: 15,215 Forumite
    Part of the Furniture Combo Breaker
    To translate, we will remove the cheapest tariffs and make more money out of all you suckers. Because the government is telling us to!
    That gum you like is coming back in style.
  • penrhyn wrote: »
    To translate, we will remove the cheapest tariffs and make more money out of all you suckers. Because the government is telling us to!
    Since we'll have no choice in the matter, we're hardly suckers. Just victims.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • As true moneysavers this is going to cost us more. Yes may be this is a selfish attitude, but that is the reality of the change.
  • Wywth wrote: »
    But that is a maximum of 4 tariffs per supplier, which to compare apples with apples, we would need to multiply by the number of suppliers (lets assume the 'big 6' plus the 'little 8'- although there are probably more than that)and that would still result in a baffling 50+ choice of tariffs for a customer to still chooose from.

    Are we going to get an explosion of small subsidiary companies to allow the big companies to get round the 4-per-supplier limit ?
  • Wywth
    Wywth Posts: 5,079 Forumite
    mbailey wrote: »
    As true moneysavers this is going to cost us more. Yes may be this is a selfish attitude, but that is the reality of the change.

    But do remember, that in a poll of 3500 MSE'ers last year, the vast majority wanted simplification, even if is some cases that meant higher prices ;)

    http://blog.moneysavingexpert.com/2012/10/18/the-pms-energy-plans-exactly-what-people-want-but-will-he-do-it/
  • Wywth
    Wywth Posts: 5,079 Forumite
    Are we going to get an explosion of small subsidiary companies to allow the big companies to get round the 4-per-supplier limit ?

    Perhaps, unless they define a supplier as each with their own unique supply licence.
    As Ofgem say they will enforce the rules through the licence, won't that be the only way they can effectively define a supplier?
  • Joyful
    Joyful Posts: 2,429 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    This part is interesting.... While there will be a maximum of four tariffs, suppliers can offer different variants of these depending on how people pay. So they could include discounts for direct debit or a premium for pre-payment.

    It would be justifiable as Prepayment customers cost a lot more to service for the suppliers so I hope we do not see an increase in their prices. Currently most suppliers charge them at the same rate as a standard credit tariff and often lose money on them.


    Self Employed, Running my Dream Jobs
  • I wonder if "cheap" is the correct term and how will this plan make energy cheaper?
  • keith1950
    keith1950 Posts: 2,597 Forumite
    1,000 Posts Combo Breaker
    As true moneysavers this is going to cost us more. Yes may be this is a selfish attitude, but that is the reality of the change.

    Hi, approximately 15% of us bother to switch and can save up to 20% so we will end up paying more for our utilities - the savings pot will basically be the 20% we save shared out between everyone so 15% of that 20% will roughly equate to around 3% saving .
    Which means the average saving will be less than £40 per year/ £3 per month.

    The average punter won't even notice the difference !!
  • backfoot
    backfoot Posts: 2,700 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    keith1950 wrote: »
    Hi, approximately 15% of us bother to switch and can save up to 20% so we will end up paying more for our utilities - the savings pot will basically be the 20% we save shared out between everyone so 15% of that 20% will roughly equate to around 3% saving .
    Which means the average saving will be less than £40 per year/ £3 per month.

    The average punter won't even notice the difference !!

    Thank you Andrew Mitchell.
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