MSE News: Energy firms will face 'competition test', PM says

Former_MSE_Helen

"The Government is to launch a 'proper competition test' to see whether the energy market can be made more competitive..."

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Energy firms will face 'competition test', PM says




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DragonQ

Good. Hopefully something useful will come of it.

footyguy

Archna Luthra, MoneySavingExpert.com energy analyst, says: ...

"Currently it can take weeks to switch energy provider when all that changes is the bill payer – you can switch a bank account in seven days and a mobile contract even quicker. Suppliers are undermining the switching process and this must be remedied to shake up competition."

It should only take 7 days to switch supplier according to the regulator.

But that 7 days doesn't start until the expiry of the cooling off period.

Are you suggesting the cooling off period should be scrapped, making it easier for suppliers to slam other suppliers customers onto their own tariffs that may not be appropraite for their needs?

I don't think you will garner much support for that idea.

jobdone1

Any thing that will help quick switching is a great move forward i agree it should not take 6-8 weeks that's ow long a mortgage takes for goddess sake, Its hardly a mortgage. I do fear this is just smoke and mirrors for the run up to the general election though.

MillicentBystander

footyguy wrote: »

It should only take 7 days to switch supplier according to the regulator.

But that 7 days doesn't start until the expiry of the cooling off period.

Are you suggesting the cooling off period should be scrapped, making it easier for suppliers to slam other suppliers customers onto their own tariffs that may not be appropraite for their needs?

I don't think you will garner much support for that idea.

Nothing stopping the regulator ruling that the punter, if they so wish, can formally opt out of the min cooling off period in order to facilitate a quick switch. We all know the ridiculous wait for a G&E switch to happen is mostly down to deterring people from switching.

footyguy

MillicentBystander wrote: »

Nothing stopping the regulator ruling that the punter, if they so wish, can formally opt out of the min cooling off period in order to facilitate a quick switch. We all know the ridiculous wait for a G&E switch to happen is mostly down to deterring people from switching.

Nothing at all.

But as I say, I don't think you will garner much support for such approach.

footyguy

jobdone1 wrote: »

...i agree it should not take 6-8 weeks ...

I agree too, and so does the regulator who says it should not take any longer than 5 weeks currently

MillicentBystander

footyguy wrote: »

I agree too, and so does the regulator who says it should not take any longer than 5 weeks currently

But this is the same regulator who in 2010 ordered npower to repay £1.2 million to its wronged punters for the gas sculpting scandal whereas Consumer Focus, who then took up the case, got them to pay £70 million back. So perhaps we shouldn't take their word as gospel?

MillicentBystander

footyguy wrote: »

Nothing at all.

But as I say, I don't think you will garner much support for such approach.

From whom? And why don't you? I stressed it would be an option not a default position.

Ectophile

MillicentBystander wrote: »

Nothing stopping the regulator ruling that the punter, if they so wish, can formally opt out of the min cooling off period in order to facilitate a quick switch. We all know the ridiculous wait for a G&E switch to happen is mostly down to deterring people from switching.

If you give customers the option of opting out of the cooling-off period, then they WILL be opted out by the salesman, whether the customer knows about it or not.

It's a green light for dodgy salesman to switch people with no chance to think about it.

Consumerist

Whilst I agree that speeding up the switching process will, hopefully, encourage consumers to switch more often, I don't think that will address the main issue here.

With energy prices rising at their current rate, even if the government removes all green taxes at a stroke (~10% of the bill) it will not significantly reduce prices in the future.

The question in my mind is: are we getting good value for the money spent, at our expense, on modernizing the energy infrastructure?