Ofgem - more short-sighted grandstanding and hatred of pensioners and Scottish Power

Nada666

Ofgem have now fined Scottish Power for allowing those quarterly payers who dutifully pop into the Post Office to pay their bills promptly a competitive price for their energy.

Those pensioners, who for whatever short-sightedness themselves, choose to continue paying quarterly will never again be allowed to pay a decent price.

What on earth is wrong with Ofgem? How do they justify their pathological hatred of people who pay their bills on time?

undaunted

I believe they've fined them for an excessive differential in prices - i.e. are suggesting that those who choose to pay by cash or cheque or DDI (which they are quite entitled to do without being branded as "short sighted") should not be charged so much more than those paying by DDI as was previously the case. They have not stopped them paying a decent price at all. It is for Scottish power to decide what they charge people and how they comply with the rules applicable to all companies, have achieve that halving in differential not something Ofgem imposed a ban on as you suggest.

I find it interesting that on average those paying quarterly in arrears were paying the same as those paying up front by PPM - each around £80 more than those paying by DDI. Are the costs of each of those two really the same & does the interest generated on payments made up front, savings on not having to chase late payments etc get deducted from the supposedly higher costs of these meters I wonder ?

http://www.theguardian.com/money/2014/may/20/ofgem-penalises-scottish-power-energy-bills-overcharging

http://www.utilityweek.co.uk/news/scottish-power-fined-750000-for

Nada666

Where are the demands from Ofgem to increase prices to prepayment customers?

Why are suppliers allowed to make the charges pro rata consumption? It does not cost more to write letters chasing £10 than it does for £100. So for pensioners and the disabled who often choose to pay cash and choose to pay immediately and often have higher consumptions this will be more expensive for them. Many will now pay much more than £150 extra per year. (Yes, yes, I know, I am usually moaning that pensioners are perfectly capable of paying by DD. That's not the point.)

And prompt payment discounts have been banned - they are classed as 'restrictive'.

undaunted

Prices for prepayment customers were brought down (for similar reasons & rightly so) so why would anyone want to put them back up?

They were already paying more - that's the point of the fine. The intention was to get the extra they were being charged brought down not cost them more. If suppliers do otherwise that is down to them. They may one day finally find themselves brought to book - though I have little faith in Ofgem or the current Govt being the ones to do it (and not too much in Milliband delivering either)

Nada666

I thought you said in the first post that the direct debit delta should accurately reflect actual cost - but you do not believe that prepayment meter customers should have their charges increased to reflect their costs.

They have separate networks to pay for, they make multiple transactions, they have interest free repayment plans over ridiculously long periods, plenty of people expect them not to carry the cost of installing and removing meters at whim... is that not way more expensive than paying your bill the day it comes through your door?