big 6 to reduce prices?

NittyGritty

what would this mean for those on long fixes, or even 1 or 2 year fixes, how would they plan to reduce their prices, will it be a one off payment or would they reduce unit prices (hard to see if on fixed terms) or will it be a case of sorry u fixed wont affect you etc.
personally I,m on npower 2017 deal

MillicentBystander

Would they be under any obligation to reduce them at all is the question. I do think it significant that the upper echelons of the switching sites are dominated by fixed deals, though...

Pincher

Interesting point, since you have an opportunity to switch penalty free if they increase prices.

All this to-ing and fro-ing must be wasting huge amount of admin time, which can only add to the costs.

With all the blame somebody else law suits, like the cigarettes, I look forward to a class action for incitement to switch, against MSE.

The charges are:

1. Rumour mongering,
2. Incitement to switch for profit,
3. Causing financial loss by people who fixed too high for prolonged term.
4. Causing excessive administrative overhead, which further add to the cost of energy.

MSE should take up £100billion of corporate liability insurance, otherwise the insurance company will try to claim they were under insured, and pay out less.

So, an entire compensation industry will be born, like PPI. People who didn't fix will be called up to fill out a claim form.
A high energy user fixed on an expensive tariff could be £1,000 worse off.

There, that's how you get your refund.

Or you can just switch tariff, which is a lot easier.;)

NittyGritty

even when mse knew about possible cuts they were still pushing for fixed deals, while I know its the choice of the person who decides to switch, it does kind of make you wonder, do they really have peoples intrests at heart. as even MSE have a vested intrest in pushing these fixed deals as they and other switching sites get a cut.

whilst I,m glad I went for fixed deal even now after these cuts (small I know) but come winter 2014, or 1st jan 2015 they will rise again

NittyGritty

well I guess this as just answered it. good news I guess, even tho its just a small saving...

Will the big six providers pass this saving on?
MoneySavingExpert.com asked the big six energy suppliers whether or not they'd be passing on the Government's savings. All will pass on the WHD rebate, although other details are less clear or vary by company. Here's what they said:

• British Gas will pass on all three elements of the Government's savings onto all existing customers, including those on fixed deals, from 1 January. The savings will also be passed onto tariffs being sold from the same date. It says an average dual fuel customer will save £53 as a result.
• EDF will pass on the savings made from the WHD rebate onto all of its customers, including those on fixed deals. It says the saving will also be passed onto its tariffs on sale from the same date, although prices won't change. It's yet to set a date for this. ECO and network savings won't be passed on as EDF says it factored these in when it announced a 3.9% price rise this winter, smaller the other big six suppliers.
• E.on will pass on the WHD rebate to all customers, including those on fixed deals, although it's yet to decide when this will take place. It also hasn't decided whether it will also be passed onto tariffs being sold from then onwards. It is yet to announce if the other two savings will be passed on.
• Npower will pass on all three elements of the Government's savings onto all households, including those on fixed tariffs. Savings will also be passed on to tariffs currently on sale. A date hasn't been set yet.
• Scottish Power will pass on all three elements of the Government's savings onto variable and prepay customers only. Fixed electricity customers will only get the £12 WHD rebate. These savings will be passed on in "early 2014". Scottish Power is also yet to confirm whether tariffs on sale from then onwards will incorporate the savings.
• SSE says all three elements of the Government's savings will be passed onto variable and prepay customers before April. It's reviewing whether or not to pass the savings onto those with a fixed deal. Savings will also be passed onto tariffs currently on sale

NPowerUser

Rotten tomatoes for Scottish Power and SSE

Nada666

NittyGritty wrote: »

• Npower will pass on all three elements of the Government's savings onto all households, including those on fixed tariffs. Savings will also be passed on to tariffs currently on sale. A date hasn't been set yet.

Good luck with that. I am sure their systems will cope wonderfully with the complication. :rotfl:

DUTR

I'm not sure why there is so much excitement? The prices are still going up, just not by as much, £53 over a year will barely buy a night out for two.

NittyGritty

your right, its not much, but its better than nothing.