Existing energy customers barred from cheapest deals

Dagsyrugg

Hi

Thought this would be of interest:

http://www.bbc.co.uk/news/business-37521168

Regards

LMS123

I've just looked at the thread and it confirms exactly what I've been thinking.
I switched from EON to OVO a year ago and reduced my bills from about £1000/yr to £850/yr approx. It didn't go as smooth as I expected. I'm now switching back to EON for 2 reasons. Firstly, OVO has hiked their unit electricity price and, secondly, the comparison sites all came up with the "new customers only" EON tariff which I'm hoping will keep my bills lower.
So, reluctantly, I'm going back to EON and expect to have to search again for a better price in 12 months.
But it concerns me that this is going to be another annual chore to find the best price, along with car insurance, house insurance, contents insurance etc. I'm reasonably computer literate and have time to search for deals, jump through the on-line hoops to register, check emails to act on the next "stage", take meter readings etc etc. It's unfair on the elderly and those who aren't computer-literate or have no internet access. They end up paying over the odds for energy and insurance. Some energy companies have side-stepped the government's promise to give their customers the cheapest tariff, not aided by Ofgem and the CMA.

footyguy

Such deals were originally banned by the regulator Ofgem in April 2014. Following a recommendation from the Competition and Markets Authority (CMA) in April this year, Ofgem let it be known it would no longer enforce these rules.

So it was the CMA again?

As I said elsewhere, I think someone should probe the CMA as they no longer appear fit for purpose.

footyguy

LMS123 wrote: »

I've just looked at the thread and it confirms exactly what I've been thinking.
I switched from EON to OVO a year ago and reduced my bills from about £1000/yr to £850/yr approx. It didn't go as smooth as I expected. I'm now switching back to EON for 2 reasons. Firstly, OVO has hiked their unit electricity price and, secondly, the comparison sites all came up with the "new customers only" EON tariff which I'm hoping will keep my bills lower.
So, reluctantly, I'm going back to EON and expect to have to search again for a better price in 12 months.
But it concerns me that this is going to be another annual chore to find the best price, along with car insurance, house insurance, contents insurance etc. I'm reasonably computer literate and have time to search for deals, jump through the on-line hoops to register, check emails to act on the next "stage", take meter readings etc etc. It's unfair on the elderly and those who aren't computer-literate or have no internet access. They end up paying over the odds for energy and insurance. Some energy companies have side-stepped the government's promise to give their customers the cheapest tariff, not aided by Ofgem and the CMA.

Sign upto the CEC (other similar alert providers are available), and don't let it become a chore:

You will be alerted as soon as a better deal becomes available to you (subject to a trigger level you may set), even if it's before the existing deal ends
You might even get some cashback too - not bad for 2 mins of your time applying to switch

To those that don't have internet access, I think every comparison site offers telephone support (not the CEC, but their comparison service provider, MSM, does).
Ensure they tell you about any better deals they cannot switch you to, as some don't by default when telephoning.
Or they can get their grandkids to do it online for them

CHTT

The CEC does not get round the problem facing existing customers of a supplier not being able to obtain those tariffs which are 'exclusive to new customers only'.

Smodlet

LMS123, are you sure Eon have the best tariff for you? What about the BG Big Switch 5 tariff? There are still two days left to sign up to that one.

It is nice to see nPower (so far) doing something right that most of the other big six are doing wrong. Just called them and was told they are not aware of any plans to introduce tariffs available only to new customers at this time. They have weekly briefings, apparently, so this information is less than a week old. It would be nice if they would stand up as SP have done and announce they will not adopt this practice.

I agree with you, footyguy, the CMA sounds about as much use as a punctured prophylactic these days.

Farway

Smodlet wrote: »

It is nice to see nPower (so far) doing something right that most of the other big six are doing wrong. Just called them and was told they are not aware of any plans to introduce tariffs available only to new customers at this time. They have weekly briefings, apparently, so this information is less than a week old. It would be nice if they would stand up as SP have done and announce they will not adopt this practice.

.

N power, changed already, Moneybox R4 this lunchtime. Some new cheaper deals for new customers only

bumpercars99

Smodlet wrote: »

LMS123, are you sure Eon have the best tariff for you? What about the BG Big Switch 5 tariff? There are still two days left to sign up to that one.

It is nice to see nPower (so far) doing something right that most of the other big six are doing wrong. Just called them and was told they are not aware of any plans to introduce tariffs available only to new customers at this time. They have weekly briefings, apparently, so this information is less than a week old. It would be nice if they would stand up as SP have done and announce they will not adopt this practice.

I agree with you, footyguy, the CMA sounds about as much use as a punctured prophylactic these days.

That BG tariff isn't at all competitive for me coming about 10th so I wouldn't be surprised if that's the same for others. It's even beaten for me by a Sainsbury tariff.

I'm a low user though and my interests have definitely been damaged by the enforcement of standing charges by energy regulators, now this change has caused the inconvenience of a switch I wouldn't have made otherwise. Not really sure if there are people who've actually benefited from their actions...

SailorSam

Did you listen to Moneybox R4 at lunchtime ? This was the main subject on the programme. The guy from one of the energy companies, was trying to justify it by saying the same thing happens in other industries, notably with Insurance firms.

molerat

So other industries do it - it must be OK then. :mad:
CMA / OFGEM seem to be advocating the exact opposite of what the government are trying to achieve. Energy companies already have a pretty poor reputation so lets sink it even further by taking on the slimy tricks of other industries.

Smodlet

The BG tariff was not cheaper for me, either but, since my tariff is no longer available, I was just trying to be helpful. I would recommend nPower but am so sick of being shot down every time I say anything positive about them.

So many people are complaining about Eon atm and are leaving in droves (or say they are) I would exercise caution. The Eon tariffs' standing charges I have seen are obscenely high.

For my region I am on the cheapest tariff there is, not budging and fixed until next July. I have even looked at separate providers, what with Hengus or whoever it is always banging on about GB Energy and Zog... they are not cheaper for me. It is a regional thing.