MSE News: Scottish Power cuts bills by £54

Bark01

LesU wrote: »

The only other explanation for SP's approach to refunds is that people on fixed tariffs (like myself) were being subsidised by the customers on standard variable tariffs. So logically, if SP aren't giving refunds back to the fixed rate customers, they should be giving back more to the standard rate customers.
Otherwise, as has been said, SP have just been given a nice Christmas present by the government (aka you and I as taxpayers).
If I was a standard variable rate customer I would be asking where the rest of the money has gone.

Just out of interest, has anybody seen any numbers regarding the proportion of SP's customers on fixed rates?

Getting a little tired of this argument.

Green levies have gone up lots of time in the past in these changes have not been passed onto fixed price customers. When you sign up to a fixed price product its gamble that prices won’t go down. Historically this has been a gamble that has paid off most of the time.

Cardew

Bark01 wrote: »

Getting a little tired of this argument.

Green levies have gone up lots of time in the past in these changes have not been passed onto fixed price customers. When you sign up to a fixed price product its gamble that prices won’t go down. Historically this has been a gamble that has paid off most of the time.

Surely that isn't the point.


Scottish Power have a business plan and they price their Fixed tariffs for commercial reasons.


In the 'small print' of those fixed tariffs they reserve the right to increase prices if there is an increase in VAT. This, reasonably, is on the grounds that it is government intervention that they cannot control.


There is now government intervention that 'refunds' £54(average) for every customer(£42 + £12) and is paid to SP.


Yet SP decide they will retain the £42 that the Government intends to go to every customer to reduce bills.

Bark01

Cardew wrote: »

Surely that isn't the point.


Scottish Power have a business plan and they price their Fixed tariffs for commercial reasons.


In the 'small print' of those fixed tariffs they reserve the right to increase prices if there is an increase in VAT. This, reasonably, is on the grounds that it is government intervention that they cannot control.


There is now government intervention that 'refunds' £54(average) for every customer(£42 + £12) and is paid to SP.


Yet SP decide they will retain the £42 that the Government intends to go to every customer to reduce bills.

So what about the government intervention that put the green funds up in the first place. this were not charged to fixed customers.

The £42 and £12 are separate amounts. All electrical customers regardless of supplier will get the £12.

Cardew

Bark01 wrote: »

So what about the government intervention that put the green funds up in the first place. this were not charged to fixed customers.

The £42 and £12 are separate amounts. All electrical customers regardless of supplier will get the £12.

The cost of the 'Green Levy' was, and is, notified to companies years in advance - there is a laid down timetable.


Indeed in evidence to the Parliamentary Committee on Energy the heads of the Utility companies detailed the impact in cash terms of the Green Levy on customers up to 2020.(iirc)


So SP's business plan took into account the Green Levy when they set the prices for their fixed tariffs.


The Government have decide to remove the obligation for Utility companies to collect the Green Levy from all customers and fund this from general taxation; an effective rebate of £54. This was done in order to reduce bills for all customers.


However SP have decided to pocket themselves £42 of that rebate for their fixed tariff customers.

MillicentBystander

Lol, could this industry get any more dodgy?

ryijynshui

Didn't they put prices up by 8.6% on the 6th Dec 2013?

Pincher

It's a bit odd, the Scottish Power February 2015 fix was around £40 more than my March 2015 fix back in November 2013, but now it's showing as only £5 more, for average consumption.

This means there was no hurry to get on the March 2015 fix back in October 2013. I could have stayed on the cheaper January 2014 fix until 31st December 2013.

What is happening to all those people who rushed to get a January 2017 fix? There must be enough of them to create another PPI style compensation claim. "All the publicity panicked me into fixing at a higher price, it's ALL YOUR FAULT." The "YOU" could be any unfortunate rumour monger, MSE even.

elle_may

Cardew wrote: »

The cost of the 'Green Levy' was, and is, notified to companies years in advance - there is a laid down timetable.


Indeed in evidence to the Parliamentary Committee on Energy the heads of the Utility companies detailed the impact in cash terms of the Green Levy on customers up to 2020.(iirc)


So SP's business plan took into account the Green Levy when they set the prices for their fixed tariffs.


The Government have decide to remove the obligation for Utility companies to collect the Green Levy from all customers and fund this from general taxation; an effective rebate of £54. This was done in order to reduce bills for all customers.


However SP have decided to pocket themselves £42 of that rebate for their fixed tariff customers.

Yes i agree fixed prices are a gamble and i have taken advantage of this for the first time, SP march 15. But as the goverment has said all customers should recieve it, as we have payed this, no matter what tariff or energy company we had before . Other utility's are paying on all tariffs , so did they not factor in this in when putting up prices. and fixed prices have olso risen Shame on scottish power for this.

Mr_K

It's all political cobblers. £54 is diddly squat, don't know why people are so excited. Its nothing compared to the rises in the last few years - as mentioned a lot of those on fix term deals won't get it. No doubt there will be rises again just before next winter that will more than swallow it up.

As the £54 is being got from 'general taxation' you'll still end up paying it anyway - just a bit more hidden.

A non-event and a non-story.

CharlieBilly

Seems SP are just pocketing extra money all its customers have already paid or will be paying for in their bills. They just be made to give that subsidy back to all its customers