Has the ofgem plan for a maximum 4 tariffs been scrapped?

wakeupalarm

Has the Ofgem plan for a maximum of 4 tariffs from each supplier been scrapped?

It seems several energy companies are bringing out a different tariff every month, for example EDF Blue or Extraenergy v1-v4 in the space of a few months.

I thought there was to be a maximum of 4 tariffs from each suppler and they had to move existing customers onto one of these 4 tariffs.

So has this been scrapped before even coming into force?

Nada666

They can bring out a new tariff every month or every day if they like. All it means is if they already have four tariffs available to new customers then one of them has to be retired.

Trying to find and identify your current tarrif in the pull-down list of older tariffs on a comparison site is not going to be any simpler or shorter!

spiro

Nada666 wrote: »

They can bring out a new tariff every month or every day if they like. All it means is if they already have four tariffs available to new customers then one of them has to be retired.

My understanding is that when they bring out a new one they have to move existing customers onto one of the current 4 tariffs. The 4 tariff rule will not apply to smart meter tariffs.

Nada666

How on earth can that be a thing? A supplier can only react to the market once every eighteen months to change the price of the two fixed tariffs they offer? Or offer a new switcher a fix that lasts for shorter and shorter periods?

Are you two not confusing those on legacy variable tariffs who will be moved onto the current tariffs? I may be wrong but I cannot picture how the scenario you suggest could be real.

EG there are currently some suppliers with two fixes, April 2015 and December 2017. If you switch December 2014 the fix will only last until April 2015 or they withdraw the fix and only offer two tariffs. They offer today's December 2017 fix all they way through 2015 and 2016 at the same price or withdraw the fix - leaving them with no fixes to offer new switchers. (I may be being dumb and confusing something obvious, though!)

wavelets

wakeupalarm wrote: »

Has the Ofgem plan for a maximum of 4 tariffs from each supplier been scrapped?

It seems several energy companies are bringing out a different tariff every month, for example EDF Blue or Extraenergy v1-v4 in the space of a few months.

I thought there was to be a maximum of 4 tariffs from each suppler and they had to move existing customers onto one of these 4 tariffs.

So has this been scrapped before even coming into force?

Are you serious?

Do you really think an energy regulator will order it's suppliers to maintain all tariffs (and prices where these are fixed) from now until eternity?

Nice thought, but surely just thinking about it for a second would have shown something wrong with your logic there. :cool:

Bark01

Each supplier can only have 4 tariffs in each Ofgem category on sale at any given time. If they launch a new product they generally withdraw an old product, so the number of tariffs on sale doesn't change.

The standard set up for suppliers is 1 core tariff, 1 short term fix, 1 long term fix, then a spare slot for something different.

Ofgem categories are below: Standard meters fall into category A, EC7 fall into category C, Smart meters are included in the cap but if they have the same prices as another tariff they don't count extra. There is an extra category F that is exempt form the product cap and is used for bespoke heating systems (generally legacy tariffs)

Category A Metering Arrangement means using [an Electricity/ a Gas] Meter on the basis of contractual arrangements whereby the Domestic Customer is required to pay for the Charges for the Supply of [Electricity/Gas] on the basis of a single Unit Rate

Category B Metering Arrangement means using [an Electricity/ a Gas] Meter on the basis of any contractual arrangement [electricity only (other than a Category C Metering Arrangement, Category D Metering Arrangement, or Category E Metering Arrangement) whereby the Domestic Customer is required to pay for the Charges for the Supply of [Gas/Electricity] on the basis of Time of Use Rates

Category C Metering Arrangement means using an Electricity Meter on the basis of contractual arrangements whereby the Domestic Customer is required to pay for the Charges for the Supply of Electricity on the basis of two separate Unit Rates in circumstances where, during each period of 24 hours, one Unit Rate applies to up to two separate specified periods of time during that period of 24 hours and the other Unit Rate applies to the remaining separate periods of time during that period of 24 hours

Category D Metering Arrangement means using an Electricity Meter on the basis of contractual arrangements whereby the Domestic Customer is required to pay for the Charges for the Supply of Electricity on the basis of two or three separate Unit Rates in circumstances where, during each period of 24 hours:
(a) one Unit Rate applies to a specified period of time during that period of 24 hours ("Period A");
(b) one Unit Rate applies to a specified period of time which is different to Period A during that period of 24 hours ("Period B") ;
(c) one Unit Rate applies to the remaining periods of time during that period of 24 hours which are separate to Period A and Period B.

Category E Metering Arrangement means using an Electricity Meter on the basis of any contractual arrangement whereby the Domestic Customer is required to pay for the Charges for the Supply of Electricity on the basis of Time of Use Rates in circumstances where, during each period of 24 hours:
(a) one or more Unit Rates apply to different periods of time which are determined by the licensee and/or a Licensed Distributor and activated via the use of radio signals during that period of 24 hours; and
(b) no more than one Unit Rate applies at any given period of time during that period of 24 hours

wakeupalarm

wavelets wrote: »

Are you serious?

Do you really think an energy regulator will order it's suppliers to maintain all tariffs (and prices where these are fixed) from now until eternity?

Nice thought, but surely just thinking about it for a second would have shown something wrong with your logic there. :cool:

I think you have misunderstood what I was asking about as I have no ideal why you are talking about from now until eternity.

Thankfully bark01 has answered the question.

Nada666

wakeupalarm wrote: »

I think you have misunderstood what I was asking about as I have no ideal why you are talking about from now until eternity.

Thankfully bark01 has answered the question.

Well, there are some suppliers with fixed tariffs until 2018 - expecting them to maintain those for four years at the one price is as close to eternity as to make no odds!