There must be a better way to buy electricity and gas…

modsandmockers

When we buy petrol we prepay and when we need some more we prepay again. We are free to compare prices every time we buy.

The same principle applies when we buy central heating oil and/or solid fuel.

We are free to choose according to price or according to quality of service. We can choose a different supplier any time we like. If we think prices are about to increase we can buy extra. If we think prices are about to fall we can buy less.

Why is buying electricity and gas so complicated, and why is it so easy for the suppliers to rip their customers off with their unfathomable price structures and pathetic customer service levels?

Why not combine smart meters with prepayment? Householders can buy as much or as little energy as they like, and there will be a display inside the house like a motor vehicle’s fuel gauge so that householders can see when they need to fill up. Filling up would be done by phone, online or via a phone app - you would simply enter how many kWh’s you want to buy (or the amount of money you want to spend), and invite bids. Suppliers could offer discounts for larger quantities as well as any number of reward schemes for repeat customers. Once the purchase is made, the indoor display would be updated to show the new levels of prepaid energy.

People with no debit or credit cards would continue to top up their meters at a nearby cash terminal or local shop.

The idea of smart meters is definitely beginning to catch on, and they should present the perfect opportunity for the retail energy industry to finally drag its ‘business’ practices into the modern world.

AndyPK

So, how good are you at guessing if petrol is about to go up or down ?

I think its fine at the moment. You lock into a deal, and if a better one comes along you are free to move.

[Deleted User]

Over in Northern Ireland smart prepayment meters are very popular, about 40% are on them now, they re a big success and they re showing the rest of the UK how its done. The suppliers are getting more confident in their economy of usage and are offering prices less than the standard prices. Ovo and Utilita use the same meters. I can see a future where smart prepayment could possibly be the cheapest form of buying energy

windup

because most people have better things to do with their time, and the freezer doesn't understand when daddy forgot to top up

The system you propose is far more complicated than the one currently in place, if people can't fathom ((stdcharge + (units used x kwh price)), then how are they going to cope with forward pricing models

modsandmockers

windup wrote: »

because most people have better things to do with their time, and the freezer doesn't understand when daddy forgot to top up

The system you propose is far more complicated than the one currently in place, if people can't fathom ((stdcharge + (units used x kwh price)), then how are they going to cope with forward pricing models

How often do you allow yourself to run out of petrol? How difficult do you find it to understand the price of petrol?

windup

you are the one complaining about difficulty understanding price structures, I don't have a problem, it's primary school mathematics

I would be more than happy for someone else to fill the tank automatically for me whenever it is about to run out, and to pay for it with a fixed monthly direct debit.

The price of petrol at the pump changes almost daily, as does electricity, and gas, the suppliers even all that out and allow people to fix for a year or two to make life simple.

[Deleted User]

in Northern Ireland the dominant supplier Power NI operate a smartphone app for balance check and top up. All the suppliers operate online top ups. Inconvenient keys and cards and running to the shops to top up are a thing of the past.Operating costs for smart prepays are much lower so the prices are dropping. Prepays are gaining in popularity because of the convenience.

[Deleted User]

My beef with energy pricing is that the government needs to ban regressive tariffs and make progressive ones compulsory, and that wouldn't be very practical with a prepay scheme.

martinsurrey

windup wrote: »

you are the one complaining about difficulty understanding price structures, I don't have a problem, it's primary school mathematics

I would be more than happy for someone else to fill the tank automatically for me whenever it is about to run out, and to pay for it with a fixed monthly direct debit.

The price of petrol at the pump changes almost daily, as does electricity, and gas, the suppliers even all that out and allow people to fix for a year or two to make life simple.

So once you've bought your electricity in bulk, where are you going to store it?

Electricity is more complicated than petrol for the simple reason that electricity supply is more complicated.

antrobus

modsandmockers wrote: »

...Why not combine smart meters with prepayment?...

Already offered by Ovo Energy since March. Haven't you seen the TV advert?:)

windup

martinsurrey wrote: »

So once you've bought your electricity in bulk, where are you going to store it?

Electricity is more complicated than petrol for the simple reason that electricity supply is more complicated.

did you read and understand the thread before hitting quote and post