MSE News: Energy firms 'charging loyal customers £90 extra'

in Energy
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"Energy companies are charging their most loyal customers up to £90 more than those who have switched to them"
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Energy firms 'charging loyal customers £90 extra'

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  • JJ_EganJJ_Egan Forumite
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    Surcharge ????
  • matelodavematelodave Forumite
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    Why is this any different to insurance companies, mobile phone companies, broadband suppliers, SKY, Virgin etc they all give discounts to new customers to the detriment of their existing customers. It's even the same with banks & building societies who kick their existing customers in the teeth
    It's become an annual ritual when the renewals come up to have a trawl around to see what you can save and you can often save a bit just by swapping suppliers - over the past few years my ISAs have swapped back & forth between Nationwide & Santander, I'm on my fourth electricity supplier in about 5 years.
    Never under estimate the power of stupid people in large numbers
  • Nada666Nada666 Forumite
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    Name one single cheaper tariff that is not also available to loyal customers - oh, there are none.

    Unlike other markets (insurance etc) where 'loyal' customers are excluded (often) from the best deals this is not the case with energy suppliers - every loyal customer is entirely free to take two minutes of their time to check and change.
  • Nada666Nada666 Forumite
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    (Also I don't get the 'up to £90' figure - it is well over £90 (easily more than £200 for many customers.))
  • chanz4chanz4 Forumite
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    MSE your barking up the wrong tree with the facts described, tariffs are no different and are standard.

    Also as others have said what about insurance companys, they charge how much per change?? Also load premiums but they are left alone
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • JSRJSR Forumite
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    Am I right in thinking that the entire article can be summed as: people who never switched from the standard tariff are still on the standard tariff.
  • Richie-from-the-BoroRichie-from-the-Boro Forumite
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    JSR wrote: »
    Am I right in thinking that the entire article can be summed as: people who never switched from the standard tariff are still on the standard tariff.

    That's my reading of it too.
    ""the biggest energy companies add a surcharge to the tariffs of customers that they inherited from their time as monopoly suppliers""
    The 60% [stickies] that never switch are the primary cause of no competition and the biggest [subsidy] benefit to the rest of us who do switch tariff and/or supplier. The detail and difference between gas and leccy is here, gas for example has trebled since 2010, so those who have not switched gas in 4 years are paying an average from £26 to £76 more in those 4 years because they did not switch !
    Disclaimer : Everything I write on this forum is my opinion. I try to be an even-handed poster and accept that you at times may not agree with these opinions or how I choose to express them, this is not my problem. The Disabled : If years cannot be added to their lives, at least life can be added to their years - Alf Morris - ℜ
  • JoyfulJoyful Forumite
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    What a bad piece of reporting MSE. Sounds like you are getting just as sensationalist as the newspapers. There are always people who don't like change and even if the suppliers tell them about it they still will not do it. Those on the standard tariff are treated the same as new customers. They all have the option to change tariff.

    This is from the British Gas website. It gives some insight as to the changes that will be made by the energy suppliers but it's up to the customers to act on them too. You can take a horse to water............

    http://www.britishgas.co.uk/blog/articles/how-do-british-gas-prices-stack-up-against-other-suppliers
    Self Employed, Running my Dream Jobs
  • edited 26 March 2014 at 3:25AM
    reduxredux Forumite
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    edited 26 March 2014 at 3:25AM
    This home has been with the same supplier for about 10 years

    There is not a single tariff in the country that would have been cheaper for that time. For 3 or 4 years of a fixed price deal plenty of companies tried to say we can offer you a better deal, then were surprised to find they could not even get within £100.

    Right now it's on the cheapest tariff available from the same company, and there is still no way to save much by switching.

    It needed to be changed a few weeks ago as the government forced abolition of the previous tariff and there was a prospect of rates going up quite a lot if it went by default on to the standard tariff.

    Perhaps this last point could be something to be highlighted by certain journalists.
  • Bark01Bark01 Forumite
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    This isn't loyalty its disengagement and laziness. Its not the suppliers fault.
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