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MSE News: Government's cheap energy plan unveiled

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Comments

  • backfoot
    backfoot Posts: 2,700 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Price Competition between Suppliers is non existent. Only timing generally differentiates and the band of price differences is extremely narrow.

    The cross subsidy between active and non active customers has finally been stopped. Some people have pretended that was competition and benefitted for far too long.

    Essentially we had gas and electricity commodities being packaged into made up products, where such packaging was not required. It was an abuse by suppliers and a blind Regulator.

    The averaging out of prices will cause teeth gnashing from previous beneficaries motivated by greed and self interest. The new proposals although an improvement are unlikely to drive down prices because their is no significant cost differentiation between the few participants.

    Only two essential products, a limited market, cost duplication is not a succesful model for competition. A bit of political tinkering around the edges but no real progress.

    Even the Tories accepting it is a flawed model.
  • Wywth
    Wywth Posts: 5,079 Forumite
    edited 21 November 2012 at 11:14AM
    redux wrote: »
    Are you sure about that, that switching saves money?

    This household has only switched once in 8 years, at the end of a very fortuitous fixed deal which towards its end only one other company could get within £150 a year of it, many about £300 more, and is still with the same company on a lower tariff than published, such that the last time I did a comparison nothing came close.

    Yes, savings can usually be made by comparing the whole of market and switching.

    MSE Martin says the average annual possible savings for a person who has never switched is about £300

    http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

    Obviously the more recent you have switched (and so hopefully already have seen some of those savings) then the less further saving possibility exists.

    You don't say what exact tariff you are on that you say you switched to , that is not generally available.
    Of course, tariffs not generally available to all (such as social tariffs) are not included on comparison sites.

    That doesn't mean you shouldn't still shop around, although your entitlement to a social tariff with one supplier does not necessarily mean you would be entitled to a social tariff with another.

    Also, some on social tariffs have indeed found even better deals by moving to a generally available tariff elsewhere. (where they may not be entitled to a social tariff)

    So don't delay, start your comparison search today. You may be pleasantly surprised by just how much you can save by switching, especially if you haven't done so for 8 years. :beer:
  • mmmmmm!

    3,511 registered with only a couple of days before close.

    http://labour.ichoosr.com/Product/index.rails?actionId=244&utm_medium=web&channel=WebST

    Lots of interest there then?
  • penrhyn
    penrhyn Posts: 15,215 Forumite
    Part of the Furniture Combo Breaker
    mmmmmm!

    3,511 registered with only a couple of days before close.

    http://labour.ichoosr.com/Product/index.rails?actionId=244&utm_medium=web&channel=WebST

    Lots of interest there then?

    Another of Tony Bliars money making schemes?
    That gum you like is coming back in style.
  • Wywth
    Wywth Posts: 5,079 Forumite
    mmmmmm!

    3,511 registered with only a couple of days before close.

    http://labour.ichoosr.com/Product/index.rails?actionId=244&utm_medium=web&channel=WebST

    Lots of interest there then?

    I don't quite follow how this has much relevance to the subject matter of this thread, except it appears to be using one of the possible get-out clauses that may became much more common if/when the govenment actually implement their plan.

    Meanwhile, MSE Martin has said that to date, the reason these type of ideas have not really been very successful is that they are generally not currently well supported by the suppliers and that consumers can probably get a better deal just by consulting a comparison site :)
  • Wywth
    Wywth Posts: 5,079 Forumite
    penrhyn wrote: »
    Another of Tony Bliars money making schemes?

    :huh:

    The Labour Party does not make any money from the SwitchTogether scheme.
    http://labour.ichoosr.com/Product/customizableinfo.rails?actionId=244&infoTextId=116

    Care to explain your post a little more?
  • backfoot wrote: »
    . . . The cross subsidy between active and non active customers has finally been stopped. Some people have pretended that was competition and benefitted for far too long. . .
    Herein, I believe, lies the fundamental truth behind all the froth in this thread from those who have had cheap energy at the expense of others and now, selfishly, don't want that situation to change.

    That said, the numbers seem to suggest that those who will save from the change will save little but those who will lose from the change will lose a lot.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • wantanswers
    wantanswers Posts: 3,220 Forumite
    Wywth wrote: »
    I don't quite follow how this has much relevance to the subject matter of this thread,

    Well lets just say if 30,000 signed up and they all got a good deal from the same single tariff/supplier, word might spread and who knows maybe a 100,000 might sign up the next time to a similar single Tariff and so on!
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    Is there any consultation into this, or details as to when and how it's to be introduced?
  • Wywth
    Wywth Posts: 5,079 Forumite
    Well lets just say if 30,000 signed up and they all got a good deal from the same single tariff/supplier, word might spread and who knows maybe a 100,000 might sign up the next time to a similar single Tariff and so on!
    Or lets say a more realistic 3000 sign up, 10% actually go on to accept a deal (that'll be 300) and you can see why these are currently a flop.

    Just follow Martins advice, consult a comparison site and see how much you could possible be saving :)
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