MSE News: Ofgem launches trials to help prevent energy customers from overpaying

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Energy regulator Ofgem is pushing ahead with plans to encourage customers to find the best deals...

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'Ofgem launches trials to help prevent energy customers from overpaying'

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molerat

And if they use the OFGEM mandated method of calculating "savings" what could possibly go wrong

System

molerat wrote: »

And if they use the OFGEM mandated method of calculating "savings" what could possibly go wrong

It will 100% accurate for first time switchers which is why Ofgem is so reluctant to move to a more accurate annual projection cost comparison.

Ken68

Can't see it happening. For suppliers to notify their customer where it is cheaper elsewhere goes against all business sense.
Like Tesco saying Lidl are cheaper.

D_M_E

It's flawed from the start, BUT I just wonder if, by making suppliers provide details of cheaper tariffs offered by other suppliers, they are hoping to start a price war and hoping that the current supplier will offer market-beating deals in the same messages?

System

From today's Daily Mail. NPower MD appearing before a HoC's Committee:

In the evidence session in Parliament this morning, Npower admitted that it used a business model that subsidised its cheaper online offers by charging existing customers standard variable or default tariffs (SVTs).

Simon Stacey, managing director for Npower Domestic Markets, said watchdogs were correct in its assessment of its business practices. 'I think the your assessment is right in a generality,' he told MPs.

'You have to recognise the standard price is effect subsidising the non-standard tariff.

'But if you put everybody on non-standard the price will inevitably go up.'


Read more: http://www.dailymail.co.uk/news/article-4176540/Big-Six-energy-firms-like-wife-beaters-says-Labour-MP.html#ixzz4XMSoOcPy
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Ken68

Odd prices too from SSE. The Standing Charge per month for a 3 year fix is half that of the 1 year tariff.

Pincher

They should get John Lewis to do energy.

No riff raff allowed. Only proven Waitrose and John Lewis card holders who actually shop may apply, as well as the usual credit checks. That should reduce the time wasters who don't pay their bills.

Loyal customers get John Lewis/Waitrose vouchers.

We can run independent customer satisfaction surveys, and only decent scores get their license renewed. Higher score can only be sustained by decent profit margins, so don't expect John Lewis to be cheap.

Being a John Lewis Energy customer is then a status symbol.