Reduced tariff choice = rip off?

SteveRoffey

Just had a letter from First Utility telling me that as a result of the consultation with OFGEM to simplify tariffs my current tariff will be discontinued from April 2014. My account will be switched to a tariff which they estimate will be £11.50/month more expensive!!!! Even the best fixed tariff they are offering will be £7.50/month more. I can't find any mention of these new tariffs on any of the comparison sites, they are still offering only the current tariffs.

sheffield_lad

new tariffs have to now include standing charge for most this means little difference but for you (I assume a low user), it's going to cost a bit more.

All companies are moving to standing charge so even if you find one currently without it soon will be.

GL

spiro

The rules don't stop them setting the SC to £0.00.

sheffield_lad

spiro wrote: »

The rules don't stop them setting the SC to £0.00.

indeed but that is a double edged sword as customers who use average or above will generally benefit from a standing charge and lower unit rate.


There are only 4 tariffs I guess a smaller company could go for low users but would it be profitable?

Nada666

spiro wrote: »

The rules don't stop them setting the SC to £0.00.

I do wish people would stop posting this rubbish. The number of tariffs are limited to four. It is idiotic to suggest that a supplier should waste one of them on an unviable option. Ofgem have banned suppliers from offering universally suitable two-tier tariffs (or even more suitable three-tier ones.) This is not the suppliers' choice.

(Although I do not see this being the OP's problem - FU have never offered tariffs suitable for low users afaic remember.)

As to the original post, of course with only four tariffs available the prices are going to ratchet up. Ofgem and consumer groups have campaigned to oppose loss-leading tariffs available to those who switch.

Nada666

sheffield_lad wrote: »

indeed but that is a double edged sword as customers who use average or above will generally benefit from a standing charge and lower unit rate.

They would receive the exact same advantage from a two-tier tariff.

sheffield_lad

Nada666 wrote: »

They would receive the exact same advantage from a two-tier tariff.

I was only pointing out a higher standing charge is sometimes an advantage if the unit rate is low & agree this can happen with two tier which is going to become obsolete.

MK55

You may have been on an Evergreen tariff? These are coming to an end inline with the RMR from OFGEM.

Gopes

Actually, I am not convinced these changes benefit medium-heavy users either.
I have received the same letter, and spent a little time doing some sums on my usage over the past 12 months:
Current Tariff (which I am tied to until July 2015 ):
Electricity Standing Charge = 10.50p
Electricity Unit Rate = 12.243p
Gas Standing Charge = 21.00p
Gas Unit Rate = 3.783p

New Tariff:
Electricity Standing Charge = 1.62p
Electricity Unit Rate = 16.633p
Gas Standing Charge = 2.28p
Gas Unit Rate = 4.030p

Now over the past 12 months, I have consumed approximately 23000KWh of gas and 4500KWh of electricity.

By my calculations, under my current tariff, I have paid £1536 (£947 gas and £589 electricity) over those 12 months.

Applying the new charging structure, this usage would have cost £1689 (£935 gas and £754 electricity).

OK, so my standing charges drop to a very small amount (whooptidoo!!!), but the fact that the unit rates have risen by 35% (Electricity) and 7% (Gas) has a far greater impact.

B@stards!!!

SteveRoffey

Gopes, the figures you quote are interesting as my usage is roughly the same as yours, i.e. 23000 gas, 3900 electricity, and my current standing charges are the same. However the unit rates I am currently paying (on iSave v14) are higher!
The new tariffs offered show both the standing charges and the unit rates to be higher than the ones you are quoting, how can this be if there are only four tariffs?
iSave Everyday
Electricity Standing Charge = 2.27p
Electricity Unit Rate = 19.463p
Gas Standing Charge = 2.43p
Gas Unit Rate = 3.977p
iSave Fixed April 2016
Electricity Standing Charge = 2.38p
Electricity Unit Rate = 16.877p
Gas Standing Charge = 2.55p
Gas Unit Rate = 4.254p

Gopes

That is very interesting. I am also currently on the iSave v14. For completeness sake, my letter sets out as follows:
Existing Tariff (iSave v14)
Electricity S.C. 10.50
Electricity U.R. 12.243
Gas S.C. 21.00
Gas U.R. 3.783
Monthly average price 85.42

iSave Everyday
Electricity S.C. 1.62
Electricity U.R. 16.633
Gas S.C. 2.28
Gas U.R. 4.030
Monthly average price 96.96

iSave Fixed April 2016
Electricity S.C. 1.70
Electricity U.R. 14.127
Gas S.C. 2.39
Gas U.R. 4.271
Monthly average price 92.96

iSave Fixed April 2017
Electricity S.C. 18.25
Electricity U.R. 15.751
Gas S.C. 18.25
Gas U.R. 4.049
Monthly average price 98.06

I am in Kent / SE London - I am wondering whether geographical location comes in to it - but otherwise I would have expected everyone to be offered the same 4 tariffs...

I sense a call / complaint to customer services coming on.
Gopes

Edit Seems this is quite common: http://www.dailymail.co.uk/news/article-2051648/Postcode-lottery-energy-prices-Firms-charge-180-areas.html