EDF call for flat prices and Ofgem's nonsensical response

Nada666

Disgusting lies from Ofgem, as usual:

Ian Marlee, of Ofgem, said: "What consumers have said to us, and we've researched with thousands of consumers, is that what they want is choice but they also want simplicity.
"What they want is the kind of discounts like a duel [sic] fuel discount or paperless billing discounts, that if you really were just to go for a unit rate, those wouldn't be offered."

So why are the corrupt idiots wanting to ban two-tier tariffs? Which consumers want discounts? Why does tariff structure affect additional discounts?

In what way does a unit rate prevent discounts? (Not that I am a fan of a single unit rate - two-tier tariff is a fair enough balance to me.) (Claiming simplicity is a lie.)

Not that discounts should be so - they should be implemented as charges. But I understand the reasons they are presented via discounts - but they should be flat annual amounts, not a percentage discount.

Ofgem really do talk so much nonsense when it comes to their reforms.

undaunted

Like most (if not all) Civil Servants & Politicians they have a desired agenda & will produce an argument (and if necessary appropriately worded questions) in order to achieve / justify it, come what may.

The Consumers interests are not necessarily top of the agenda. I doubt very much that either choice or simplicity comes before cost / value for the average consumer if they were asked.

MillicentBystander

Genuine question because I don't know the answer:


Are OFGEM head honchos precluded from ever joining the boards of the Big 6 when they retire/leave the regulator?

undaunted

Before applying they are required to notify any potential conflict of interest.

I don't see how they could barr them from any employment afterwards. Similarly many politicians will go on to take none executive directorships & the like when they leave office.

Alastair Buchanan will leave Ofgem & no doubt turn up somewhere high profile shortly

JSR

If EDF want to do flat pricing why don't they just go ahead and do it? Why wait for everybody else? The answer is that flat unit pricing would make them very expensive for the typical consumer and they'd lose customers. (Contrary to the current media meme we are not all confused idiots!) But if only Ofgem forced flat rates on all suppliers then we'd all be forced to pay more and have nowhere else to go! Shame on Which? for promoting this anti-competitive nonsense! Why don't they campaign for something actually useful like capping the amount of time it takes to switch to say 2 weeks?

Wywth

JSR wrote: »

If EDF want to do flat pricing why don't they just go ahead and do it? Why wait for everybody else? The answer is that flat unit pricing would make them very expensive for the typical consumer and they'd lose customers. (Contrary to the current media meme we are not all confused idiots!) But if only Ofgem forced flat rates on all suppliers then we'd all be forced to pay more and have nowhere else to go! Shame on Which? for promoting this anti-competitive nonsense! Why don't they campaign for something actually useful like capping the amount of time it takes to switch to say 2 weeks?

I don't think EDF want to offer this type of pricing structure
It tends to be not very competitive, especially for higher users who usually produce the highest profit

EDF only want one thing - to maximise their profit for thie shareholders.

However, with all the talk of consumers wanting simplified bills (which Ofgem have ended up making a right hash of) EDF have thown their hat in the ring saying they would offer a really simple charging structure (just like Ebico already do).
But they have to remain competitive, so have said they will only do this if the other 5 "big 6" suppliers follow suit.

You cant have 2 week switching because of the cooling off period.
I don't think removal of the cooling off period would go down well with most people.

libra10

I tend to disagree with some of the comments noted, and feel that energy bills with their primary rates and secondary rates are too complex for most consumers to understand.

We recently received our Eon energy bill which listed gas and electric usage at two different rates, for both gas and electric.

As there was an increase during the billing period, this was also listed and charged, again at two separate rates for each type of energy.

I got my head round that, then at the bottom VAT is added, which makes the whole thing more confusing.

Also, some tariffs offer additional Tesco or other vouchers to enter into the equation.

In my opinion, you need the brain of a nuclear physicist to understand what is going on!

On the other hand, if we need to fill our cars with fuel, the price is clearly displayed on the forecourt, and it's easy to see which garage is most competitive.

I even receive a weekly email advising which is the cheapest garage in my area.

Why can't energy companies do something similar?

sheffield_lad

clear pricing great but we (the one's who look for a deal and don't stick on standard tariff), would defiantly pay more.

For old folk or people who never switch and/or pay via card at the PO it makes it easy to see what is used.

I can't see it triggering a price war either.

penrhyn

Ebico have flat unit pricing, and as a result its only worth going with them if you are a very low user.

Yorkie1

Dual tier pricing was a nightmare when I was with NPower. If I recall correctly, the amount of units in the lower tier varied according to which month you were in - and identifying the detail from their T&Cs wasn't easy.

Nicholas-bloody-Parsons

A single tariff instead of two.... That will really simplify it.

The advertised tariffs bear no relationship whatsoever with my gas usage as they use the metric system and my meter is imperial. It might as well quote the prices in Martian.

Further to that there would still be regional rates ( am in the south or south east area? I havent the foggiest! ).

Then add VAT. Is it 5% , 17.5% or 20%?
Then Minus the dual fuel discount. Again a variable amount.
Then Minus the direct debit discount. Again another random amount.

Finally dont forget to add the Nectar points

And for additional fee they will cover your boiler for breakdowns and include annual maintenance checks.

And then they wonder why customers stick with tried and trusted Gas cos.