Fewer tariffs demanded in energy bills reform: what it means for you

Former_MSE_Michael_C

"Energy firms will be forced to offer a maximum of four tariffs per fuel in a bid to... "

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"Fewer tariffs demanded in energy bills reform: what it means for you"

Wywth

Only 4 tariffs per supplier?

Presumably that is per supplier licence (else how is a supplier defined?)

That could lead to issues with suppliers that offer 'branded' tariffs, such as Age UK, M&S, etc.

Also Ebico might find that there is no room left for them if SSE want all 4 tariff offerings for themselves.

Edit: These type of supplies, referred to as "White Label Suppliers" in the Ofgem proposals, will not be affected until the end of 2014 "to allow alternative arrangements to be made".
Ofgem go on "We think it is in consumers‟ interests to give further consideration to the right regulatory framework for these alternative business models, which have the potential to deliver greater competition. We will progress that debate through the autumn."

Edit 2: "Parent and white label suppliers will be exempt from providing each other‟s tariffs in cheapest tariff messaging until 31 December 2014."

Wywth

Link to full Ofgem proposals here:

http://www.ofgem.gov.uk/MARKETS/RETMKTS/RMR/Documents1/The%20Retail%20Market%20Review%20-%20Statutory%20Consultation%20on%20RMR%20Domestic%20Proposals.pdf

MillicentBystander

Wywth wrote: »

Only 4 tariffs per supplier?

Presumably that is per supplier licence (else how is a supplier defined?)

That could lead to issues with suppliers that offer 'branded' tariffs, such as Age UK, M&S, etc.

Also Ebico might find that there is no room left for them if SSE want all 4 tariff offerings for themselves.

Haven't Ebico got their own supply licence? Even if they haven't I can't see OFGEM being comfortable with their proposals reducing the number of suppliers in the market.

PS Aren't these new proposals exactly what the much maligned (by some on here) Utility Warehouse have been doing for years?

Edit: Oh dear, Ebico don't have their own licence. Not good.

Ironically, however, the four-tariff cap now emerging from Cameron's pledge and Ofgem's Retail Market Review (RMR) could put white label energy suppliers - including Ebico - out of business. As RMR currently stands, a white labeller will either have to offer the same tariff as its partner or obtain its own supply licence from the energy regulator - something Levermore recognises as "a real threat to us".

http://www.utilityweek.co.uk/news/news_story.asp?id=198309&title=A+few+good+men

penrhyn

No more cheap deals, dumbed down tariffs for the, for those who can't be arsed to sort out the best deal for themselves.

MillicentBystander

penrhyn wrote: »

No more cheap deals, dumbed down tariffs for the, for those who can't be arsed to sort out the best deal for themselves.

What about the 80 year old granny in Martin's example? Should they REALLY have to pay top dollar so you can keep getting your subsidised deal? No fair minded person would say yes, surely....

penrhyn

:DGranny gets her winter fuel allowance.:D

Nada666

... plus she gets more than the winter fuel allowance in pension credit guarantee every month of the year.

Wywth

Having read the Ofgem report further, it appears whilst there is definitely an exemption to white label suppliers until end of July 2014, this exemption could well be extended if such white label suppliers are not tempted to apply for their own supply licence (Ofgem have already been informed of the difficulties many would face in doing so, including the cost which would have to be passed onto customers) or a "licence lite"


So it seems all a major supplier has to do is team up with other organsiations and then they can offer as many white label tariffs as they want :cool:

Edit: this could be fun!

Carlsberg gas & electricity tariff - probably the best energy tariff in the world

Stella Artois tariff - a reassuringly expensive energy tariff

Aldi energy tariff - like brands only cheaper

penrhyn

Now that standing charges are going to be universal its the ideal opportunity to scrap the BBC licence fee and add it to the electricity bill.

In other news, there are only 186 days until Christmas.
A bottle of Laphroaig will keep out those winter chills, can you thing of a better use for your wfa?

Cardew

Energy companies can still offer discounts for those who take gas and electricity together, if they sign up online or if they pay by direct debit.

These discounts will not serve to create a new tariff under Ofgem's definition but will be defined as money off one of the four core tariffs, expressed in pounds and pence.

With(apparently) no restriction on the size of discount for dual fuel, on-line accounts or payment method, the permutations for the best deal are huge.

e.g. Would it be better to forgo the dual fuel discount and get gas and electricity from different companies.

As discounts are to be in 'pounds and pence' will it stop inducements such as Nectar points being offered? Or firms like UW tying in gas and electricity supply to discounts on their telephony services.

How will a 'Pounds and Pence' discount be applied to a tariff? As a flat rate regardless of consumption, or per kWh? e.g. would someone using 500kWh get the same discount as someone using 20,000kWh?

This is NOT an argument against discounts, merely that they can make matters just as complicated.