MSE News: Suppliers told to promote better energy deals, despite switching boom

Former_MSE_Lucinda

Energy switching is at a four and a half year high proving that customers are becoming increasingly savvy about cutting gas and electricity costs - but suppliers have been told to do more encourage all of their customers to save money...

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'Suppliers told to do more to promote better energy deals, despite boom in switching'

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System

So a supplier has 3 customers paying £700 a year and 7 customers on its standard variable rate (SVR) of £1000. The supplier writes to the 7 on SVR who all switch. Government happy but not the 30% who were on a low tariff as they suddenly find that they are paying £910 per year on renewal ( as indeed are the 3 that switched) just so the supplier can maintain its profit margin. i cannot believe for a minute that the Government would expect all those who switch would be able to go on to a £700 tariff. As more switch, the gap between fixed and variable tariffs will get ever closer.

teddysmum

Hengus wrote: »

So a supplier has 3 customers paying £700 a year and 7 customers on its standard variable rate (SVR) of £1000. The supplier writes to the 7 on SVR who all switch. Government happy but not the 30% who were on a low tariff as they suddenly find that they are paying £910 per year on renewal ( as indeed are the 3 that switched) just so the supplier can maintain its profit margin. i cannot believe for a minute that the Government would expect all those who switch would be able to go on to a £700 tariff. As more switch, the gap between fixed and variable tariffs will get ever closer.

The problem is that, as with other suggestions, such as the recent combination of broadband and phone line charges or the abolition of letting agent premiums, government thinking is headline promoting and very short sighted.

Consumerist

Frankly, I think the good old British public have got just what they deserve.

We clamour for competition in our markets then when we get get it, most of us are just too bl**dy lazy to deal with it.

Martin has been screaming from the rooftops that people should switch this or switch that but laziness is king in the UK.

ChaunceyGardiner

Consumerist wrote: »

We clamour for competition in our markets then when we get get it, most of us are just too bl**dy lazy to deal with it.

I'm not sure that's true. When everything was nationalised, people clamoured for a bit more efficiency and lower prices. Unfortunately, the baby was thrown out with the bath water and now profit would appear to be the only consideration.