MSE News: Energy customers 'pay too much'

stator

The only thing energy companies should be forced to do is standardise the standing charge. It should be the flat rate the network operator charge them plus £20 for admin running the account, so every energy company would have the same standing charge and the only thing variable would be the cost of energy. That would make it much easier to compare providers.

Sledgehead

dori2o wrote: »

One way to reform the energy market IMO would be to restrict the number of tariffs a business can have for each type of meter.

IMO that makes the market much fairer and much less complicated, and guarantees everyone is getting value for money.

The same must also be true of features on cars. Or vacuum cleaners. Or ketchup.

:rotfl:

KTF

buzzyourboots wrote: »

I recently used the energy club to move from co-operative energy to a new supplier. I was presented with a bill from the co-op for £540 outstanding. A combination of low standing orders and meter estimates apparently! Any advice welcome.

Submit actual readings on a monthly basis.

Sledgehead

stator wrote: »

The only thing energy companies should be forced to do is standardise the standing charge. It should be the flat rate the network operator charge them plus £20 for admin running the account, so every energy company would have the same standing charge and the only thing variable would be the cost of energy. That would make it much easier to compare providers.

I have a similar problem with the number of sultanas in muesli. Cheaper often has less sultanas, so a straightforward cost comparison if really difficult. I did try separating the dried fruit from the nuts and oats two years ago. Boy was that an effort. Just when I thought I had the definitive information, the missus pointed out that some of the sultanas were in fact raisins. So I had to do it all again, and that's when I found that the quantity varies from bag to bag. Then there's the oaty dust levels. I want whole oats, not floor-sweepings. So after all that I was looking for something easy and worthwhile to do. So I went to a price comparison website and saved 200 quid on my energy bill. That done, i have no excuse but to knuckle under and sort out the muesli-sultana ratio .... wow do i wish they'd standardize it. And clothes too. I'm thinking we all wear khaki suits and flat caps. And songs - standardize those too. All we need is one. Now sing along, I'm sure you know the words :
"Then raise the scarlet standard high.
Within its shade we'll live and die,...."

Sledgehead

KTF wrote: »

Submit actual readings on a monthly basis.

If people would rather have gastric band surgery than move from their armchairs, what hope of that?

RedDwarf82

dori2o wrote: »

it must be extremely difficult for people who don't understand numbers or are not computer literate.

Sorry, what?

ANNUAL_COST = ANUAL_STANDING_CHARGES - DISCOUNTS/CASHBACK + COST_PER_KWH * NUM_KWH_PER_YEAR

The simplest possible tariff would be

ANNUAL_COST = COST_PER_KWH * NUM_KWH_PER_YEAR

The only added complexity is a sum.
Now, if somebody doesn't understand this, fix the education system... there is nothing wrong with the complexity of the tariffs.

Your annual consumption happens to be an unknown variable, that you must estimate. In other words, your bill will depend on how much you use... that's really a surprise to anybody??

I have not been educated here. But doesn't *everybody* see "y = a*x + b" functions before leaving school?

Sledgehead

mse_helen wrote: »

customers of the big six energy suppliers are choosing to pay [strike]paying[/strike] up to £234 a year too much for their gas and electricity bills...

read the full story:

energy customers 'choose to pay too much'




click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our new to forum? Intro guide.

fixed

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Sledgehead

RedDwarf82 wrote: »

Your annual consumption happens to be an unknown variable, that you must estimate. ......

... if and only if it is unimportant to you.

I know how much milk I drink a week and how much pork I eat.

I don't know how much water I use because I live in one of the cheapest water authority areas so can't be bothered to fit a meter. It does not matter to me.

People don't know how much gas they use because they use it like free water, because it is dirt cheap.

RedDwarf82

Sledgehead wrote: »

... if and only if it is unimportant to you.

I know how much milk I drink a week and how much pork I eat.

I don't know how much water I use because I live in one of the cheapest water authority areas so can't be bothered to fit a meter. It does not matter to me.

People don't know how much gas they use because they use it like free water, because it is dirt cheap.

"unknown variable" like in you don't know the *exact* value. Like in you don't know how much milk you will use in the next 12 months because you don't know if you will have mashed potatoes for dinner 42 or 43 times.

michaels

Martin Lewis on the BBC has criticised the 'scandal' that it is OAPs who are least likely to have switched. Presumably he is equally unhappy that they may also pay over the odds for insurance, cars, phones, food etc.

I thought we used the tax and benefits system to acheive a just society, I did not realise that every supplier in every market should have inbuilt 'social' pricing. Should we have cheaper list prices for cars for the over 65s as they may be less good at bargaining discounts?