How would you change the energy market?

[Deleted User]

simple answer is renationalise gas and elecricity,privatiastion has been a monumental failure

SwanJon

The biggest change I'd like to see is quicker switching. The current delay means that the situation can change so much between signing up and actually becoming a customer that the switch was the wrong choice.
(I know that this will require a lot of coordination, and we may need to wait for smart metering to be completed first.)

MSE_Archna wrote: »

• Should tariffs be a single rate (so know low rate or high rate?)

Really?

Cardew

Buying energy on the same market, delivered by the same means(wires and pipes) there is little scope for meaningful competition between the companies.

Thus it is inevitable that if one company 'needs' to raise prices, the others will follow. As soon as the first company increases charges, we are advised by all the comparison networks(and MSE) to switch supplier, only for the new company to also increase their prices when then have recruited sufficient extra customers.

To stop this 'merry-go-round' Ofgem could rule that there will be, say, two dates in the year when companies can announce price changes e.g. 1st April and 1st Oct. If a company doesn't announce a price increase on one of those dates, then customers will know that they will have at least six months of stability.

Wywth

woodbine wrote: »

simple answer is renationalise gas and elecricity,privatiastion has been a monumental failure

As you say, that would indeed be a simple answer

I remember the good ol' days of nationalisation. Our electricity prices were much lower then.

Of course that was probably because power was often at a reduced voltage and we often didn't have any electricity at all for up to 9 hours a day (and even if we did, there was often nothing on TV as that was when the TV studios/transmitters were suffering from no electricity)

backfoot

MSE_Archna wrote: »

• Should the number of tariffs be capped?
• Should tariffs be a single rate (so know low rate or high rate?)
• Should discount structures be simplified (ie prepay meters or direct debit discounts factored into the basic rate you pay)?
• What do you think of exit fees?
• What would make it easier for you to understand energy bills?
• Would it help to have an energy equivalent to 'APR'?
• What's difficult to understand on a bill?
• What's your experience of collective switching?

The Retail Market is a profound failure and tinkering will do little to redress the inherent lack of competition possible. I doubt Ofgem,,even if they know it, would have the political will to say it, even though the conclusion is obvious.

The deregulated market, particularly at the customer interface, is now in chaos in terms of customer service and non differential on price competition.

Working within your questions:

Should the number of tariffs be capped?

Yes. As few as possible. The same units of energy are being supplied.

Should tariffs be a single rate (so know low rate or high rate?)

Yes. With a standing charge.

Should discount structures be simplified (ie prepay meters or direct debit discounts factored into the basic rate you pay)?

No. Allow different payment methods.

What do you think of exit fees?

Terrible detriment. Ban them completely on variable priced tariffs. Allow on fixed term but only cost reflective of the cost to switch.

What would make it easier for you to understand energy bills?

Fewer changes to Direct Debits.

Would it help to have an energy equivalent to 'APR'?

No. APR is a difficult concept for many.Can't see an easy translation.

What's difficult to understand on a bill?

Repeat of a previous question !

What's your experience of collective switching?

I used this in a business/commercial environment, quite successfully. I think it has some prospects as it develops and wider tranches of customer switch. Worth trying as the current system has not provided real price competition.

Additional Points :

Ofgem to start to enforce existing Regulations strongly. e.g Direct Debits.

Consolidate all Regulation within one body.

Existing system fragmented, slow and inneffective.

backfoot

Wywth wrote: »

Of course that was probably because power was often at a reduced voltage and we often didn't have any electricity at all for up to 9 hours a day (and even if we did, there was often nothing on TV as that was when the TV studios/transmitters were suffering from no electricity)

I don't remember that other than the miners strike.When are you talking about?

What was causing those supply interruptions?

Wywth

backfoot wrote: »

I don't remember that other than the miners strike.When are you talking about?

What was causing those supply interruptions?

The actions of a nationalised industry.

Other great memories include those of British Leyland who reinvented the wheel by making it square (as in the Allegro)

Gilbert2

There are some things the state should always control and that includes gas, electricity and water, they should never have been privatised and it has been a total failure.

The banking crisis was resolved by nationalisation, even the yanks embraced it, and the fuel market in the UK is also in crisis and needs to be saved.

backfoot

Wywth wrote: »

The actions of a nationalised industry.

Didn't think you would have anything to back it up.

Wywth

Gilbert2 wrote: »

There are some things the state should always control and that includes gas, electricity and water, they should never have been privatised and it has been a total failure.

The banking crisis was resolved by nationalisation, even the yanks embraced it, and the fuel market in the UK is also in crisis and needs to be saved.

I don't think the banking crises is what you call "resolved" yet.

And how much did it cost us taxpayers to get the Northern Rock out of trouble before Richard Branson bought it for a pittance? (despite assurances from the government at the time that we wouldn't lose a penny)