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43% rise in standing charge at Coöp Energy
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I’ve had a letter from Coöp Energy telling me that my electricity-and-gas bill will go up by 10.54% on 8th January. It doesn’t say this in so many words, just lists the higher standing charge and increase per unit and leaves me to do the sums.
The figures come after a long passage of self-congratulatory guff. The Coöp compares itself with “some energy companies” who “raise their prices by as much as 10%” and says the good news is that its price rise is much lower. How have we kept it so low? it asks.
Yes indeed, how have they kept my rise down to just 10.54%?
I rang them up to see if my calculation was correct, which it was, and was fed a variety of specious justifications. Much of the rise is an increase in standing charge from £73 to £104.50 per fuel per year (+43%). This will appear on my bills, but I shouldn’t count it when calculating the increase, I was told; I should look at just the rise per unit. And it’s true: if you leave out the biggest part of the increase, what’s left does look much more reasonable.
The Coöp prides itself on being different – yet one of the arguments put to me was “other companies do the same”.
It boasts that it likes to be fair. “It’s particularly important to us that our customers feel fairly treated by us,” it says in a document devoted to the topic. The increase in standing charge is for those who choose to pay other than by direct debit, and is for “administrative input”. When I asked what administrative input could possibly cost £15.75 per quarterly payment (online by debit card), I was told that those who settle on time must pay the cost of chasing others’ bad debts. When I asked if they thought this fair, they repeatedly avoided answering the question.
It seems that, after all, they don’t care whether I feel I’m being treated fairly.
Time to look for another supplier, I think.
The figures come after a long passage of self-congratulatory guff. The Coöp compares itself with “some energy companies” who “raise their prices by as much as 10%” and says the good news is that its price rise is much lower. How have we kept it so low? it asks.
Yes indeed, how have they kept my rise down to just 10.54%?
I rang them up to see if my calculation was correct, which it was, and was fed a variety of specious justifications. Much of the rise is an increase in standing charge from £73 to £104.50 per fuel per year (+43%). This will appear on my bills, but I shouldn’t count it when calculating the increase, I was told; I should look at just the rise per unit. And it’s true: if you leave out the biggest part of the increase, what’s left does look much more reasonable.
The Coöp prides itself on being different – yet one of the arguments put to me was “other companies do the same”.
It boasts that it likes to be fair. “It’s particularly important to us that our customers feel fairly treated by us,” it says in a document devoted to the topic. The increase in standing charge is for those who choose to pay other than by direct debit, and is for “administrative input”. When I asked what administrative input could possibly cost £15.75 per quarterly payment (online by debit card), I was told that those who settle on time must pay the cost of chasing others’ bad debts. When I asked if they thought this fair, they repeatedly avoided answering the question.
It seems that, after all, they don’t care whether I feel I’m being treated fairly.
Time to look for another supplier, I think.
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Comments
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But that is how the system is set up - by all suppliers, not just the Co-op. Blame the consumer advocates, not the suppliers. Blame Ofgem, not the suppliers.
Suppliers want to give prompt payment discounts and analagous encouragement but idiots like Ofgem block this.
Of course it is not fair - the only way to avoid susbsidising scum who do not pay on time is to use direct debits. The way the market is set-up there is no other way.
Their justifications are not specious.0 -
(Also you appear to have not noticed a rather major feature included in the name of their brand - 'co-operative'. Surely you approve of such subsidies? That's the whole point - the strong, able, competent pay a higher share to help the weak and less competent. Of course, in practice, you quickly slip to the right and find that 'weak' and 'vulnerable' turn out to be the 'fec!less' spoiling the Commons.)0
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I’ve had a letter from Coöp Energy telling me that my electricity-and-gas bill will go up by 10.54%
How else did you think that they could pay for their coke habit?
http://www.bbc.co.uk/news/uk-250473760 -
(Also you appear to have not noticed a rather major feature included in the name of their brand - 'co-operative'. Surely you approve of such subsidies? That's the whole point - the strong, able, competent pay a higher share to help the weak and less competent. Of course, in practice, you quickly slip to the right and find that 'weak' and 'vulnerable' turn out to be the 'fec!less' spoiling the Commons.)
A droll hypothesis, which makes some assumptions about my thinking and circumstances, of which you know nothing.
Let me see if I've understood. When my bill goes up, I turn the heating off for longer, and put on another pullover, I should regard this support of bad debtors as charitable giving? In some cases, there may be a case for it – but perhaps the strong, able, and competent who pay by direct debit should also contribute.
Whatever, I can find no evidence on Coöp Energy's web site that it is registered as a charity, that this is part of what they are about, or any discussion of deserving and undeserving bad debtors.
Don't let me put you off hypothesising, though.
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The only assumptions I made were that you understood what a co-operative organisation is and what sarcasm is.
I absolutely agree that there should be no difference in price for those who pay by direct debit and those who pay quarterly on time. I was just describing reality. Ofgem and consumer groups successfully campaign against just such fairness. Don't shoot the messenger.0 -
The only assumptions I made were that you understood what a co-operative organisation is and what sarcasm is.
Well, I think I know what a coöperative is, and just to be sure I've checked in a dictionary. It is an organisation collectively owned and managed for joint economic benefit. A group can negotiate better deals than an individual, can cut out middle men, etc..
A coöperative is not set up specifically to aid its weaker members; it’s designed to help them all.
As for sarcasm – well if you think it’s appropriate here, then carry on. Can you make it witty while you’re at it? 0 -
How else did you think that they could pay for their coke habit?
http://www.bbc.co.uk/news/uk-25047376
Well, quite. 0 -
The only assumptions I made were that you understood what a co-operative organisation is and what sarcasm is.
I absolutely agree that there should be no difference in price for those who pay by direct debit and those who pay quarterly on time. I was just describing reality. Ofgem and consumer groups successfully campaign against just such fairness. Don't shoot the messenger.
I certainly do - and Co-Op Energy is nothing of the sort. It started out as such but the grim reality soon dawned upon them and the Big 6 template was enacted sharpish.0 -
But that is how the system is set up - by all suppliers, not just the Co-op. Blame the consumer advocates, not the suppliers. Blame Ofgem, not the suppliers.
Suppliers want to give prompt payment discounts and analagous encouragement but idiots like Ofgem block this.]
Another example of the law of unintended consequences, where regulators have had a knee-jerk reaction but arguably made the situation worse.0
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