Green price reductions....

undercover_peon

So I've been thinking about this for a little while and I think on balance the energy suppliers have ran rings round the government (yet again).

The government said there is no practical bar to the reductions being passed on and they expect that they will be passed on in full.

The way I see it some suppliers are basically pocketing free money from the government.

I know you can argue that a fixed rate is just that, you benefit from the peace of mind that price stability provides. However I do feel this is a little disingenuous.

The energy companies knew, or ought to have known, the costs of green levies and therefore would (or should) have accounted for them when setting prices. It is akin in my eyes to the VAT amount changing, they would pass this on either way.

I really do think the time has come to dispense with Ofgem and get somebody with a clue to fight for consumers.

I don't even think people would mind so much if prices were rising and it was explained as look more people across the world want more of the stuff so we're stuck. It is all this smoke and mirrors stuff that people dislike.

When a company says, with a straight face, moving jobs to India will improve service you have to ask at what point does the regulator or the government DO anything effective?

I've lost count of the number of times an Ofgem edict or action had an unintended consequence (usually the exact OPPOSITE of what was intended).

I'm going to sign the Npower petition as I feel they are the worst example, but am open to suggestions about what can be done about Ofgem.

Can't we get whomever worked for consumer focus (I think that was the name) back given that with gas sculpting they achieved a much better outcome for customers than ofgem did despite having no real power to do so?

Bluebirdman_of_Alcathays

So you advocate a system where fixing prices is just a gold plated benefit for the savvy? Shall we do it with fixed price mortgages too?

The idea of fixing was always that, for a slight premium, you could protect yourself against price rises. If it falls, well, you're on a fixed price. Tough. People got too used to the fact that prices kept going up. Now it's gone down and some people have been caught out. Is that really the energy companies fault? Or should people engage their brains before entering into a fixed term contract.

I commend the companies that have reduced their fixed tariffs due to the green reduction, but I completely reject the notion they should be compelled to. Taking a fixed future rate on anything (shares, bullion, currency, or indeed energy) is a risk. Act accordingly.

NittyGritty

think your missing the point, the government Reduced the Green levy, and as such ALL (the top 6) companys Regardless of being on fixed, or standard should pass on the reduction

theres a difference between a price descrease and the governments CUT in green tax. this is added to ALL bills Regardless of fixed/standard/variable deals

that was the WHOLE point of reducing the levy.

Bluebirdman_of_Alcathays

Rubbish. Companies with fewer than 250,000 customers don't charge it at all. How do you think FU end up at the top of price comps all the time?!

It isn't the same as VAT, which everyone has to pay. It's a cost imposed on select suppliers, no different to their staffing costs or the cost of energy. As with all external business costs it is transferred to the consumer, but a universal tax it isn't.

NittyGritty

I,m talking about the top 6, the smaller companys don't have the green levy!

Bluebirdman_of_Alcathays

If you take out a fixed mortgage, and the bank changes it's interest rates, would you expect your repayments to change? Or only if it works in your favour?

A fixed price is a fixed price. The consumer agrees that contract. Again, I commend those companies that have passed the benefit on to all. But they don't need to.

NittyGritty

Bluebirdman_of_Alcathays wrote: »

If you take out a fixed mortgage, and the bank changes it's interest rates, would you expect your repayments to change? Or only if it works in your favour?

A fixed price is a fixed price. The consumer agrees that contract. Again, I commend those companies that have passed the benefit on to all. But they don't need to.

your right it is, a fixed price, which is neither here nor there in the governments reduction, it was made to cut the bills for ALL not just a few, suggest you re read their announcement

Bluebirdman_of_Alcathays

NittyGritty wrote: »

your right it is, a fixed price, which is neither here nor there in the governments reduction, it was made to cut the bills for ALL not just a few, suggest you re read their announcement

So what's the point in the whole process? Are you suggesting government can ride roughshod over agreements entered into by consumers and companies? As you've belated attested to, the green levy was not a tax paid by ALL, so why should ALL consumers benefit?

NittyGritty

Bluebirdman_of_Alcathays wrote: »

So what's the point in the whole process? Are you suggesting government can ride roughshod over agreements entered into by consumers and companies? As you've belated attested to, the green levy was not a tax paid by ALL, so why should ALL consumers benefit?

wrong , the green levy is paid by All ( the top 6 energy companys) regardless of being on fixed,standard,variable deal

Bluebirdman_of_Alcathays

NittyGritty wrote: »

wrong , the green levy is paid by all on the top 6 energy companys

Are you saying there is nobody with Utility Warehouse, First Utility, Ovo, ebico, economy energy, good energy, green energy, economy energy.........

Keep digging :T

NittyGritty

Bluebirdman_of_Alcathays wrote: »

Are you saying there is nobody with Utility Warehouse, First Utility, Ovo, ebico, economy energy, good energy, green energy, economy energy.........

Keep digging :T

are any of those signed up to the green levy tax ? think you find the answer to be No, read what I said above, top 6 as they are called. incase you don't know who the top 6 are (npower, scotish power, e.on, SSE,EDF and BG)

and secondly why would any of the above get a reduction on the green levy when none of the above even have it added to their bills?

all the above are cheaper because they don't have the green levy added to bills.

but anyway we will agree to disagree