Tories announce energy price rises for those who shop around to protect big business

michaels

http://www.bbc.co.uk/news/uk-politics-39685106

Basically the profit made on customers who are too lazy to look for the best deal will be capped. This will reduce the ability for companies to be able to cross subsidise new customers with cheaper deals so pushing up prices for those who do bother to look at how much something costs before buying it.

It will also make it harder for new entrant small suppliers because the headline savings they can offer compared to 'standard tariffs' will be lower so consumers will decide that if they can only save £10 per month it is better to stick with a big name that they know. Hence helping out the big companies that form part of the corporatist state. There is a reason why companies like google who disrupt markets are not founded in the UK.

The return earned by the suppliers overall is not excessive so the regulator will not insist that the total amount billed should fall - it will just be more evenly spread and with less completion it will probably be slightly higher.

And all this from a govt that claims that there is currently too much regulation.....

Thrugelmir

michaels wrote: »

Basically the profit made on customers who are too lazy to look for the best deal will be capped. This will reduce the ability for companies to be able to cross subsidise new customers with cheaper deals so pushing up prices for those who do bother to look at how much something costs before buying it.

And all this from a govt that claims that there is currently too much regulation.....

Seems a simplification. Being lazy has nothing to do with it. Not everyone has internet access for example.

mrginge

I realise it's a bit socialist, but I don't think people should have to spend their time shopping around for fundamentals like energy.

Rinoa

Of course we all want the best deals. I'm on the MSE scheme which is very good - especially if you use a lot of gas.

But I'm not sure I want the best deal out there if it means some old dear is sitting in a cold house frightened to switch on the central heating.

Graham_Devon

It's not simply the "too lazy".

It's many who are not able to switch due to being in rentals or shared buildings. Then there are those with less capacity than you or I. Then there are the elderly.

I'd rather pay a little more myself and still shop around it if genuinely meant those less fortunate (for whatever reason) weren't being taken for a ride in order that I can save £15 a year. I can do that by turning the heating down a notch if I wish...as could you.

POPPYOSCAR

mrginge wrote: »

I realise it's a bit socialist, but I don't think people should have to spend their time shopping around for fundamentals like energy.

I whole heartedly agree with you.

westernpromise

If toastie were still here he'd be saying that old people should used as fuel.

michaels

mrginge wrote: »

I realise it's a bit socialist, but I don't think people should have to spend their time shopping around for fundamentals like energy.

If for example BT had remained the monopoly supplier of telephony including mobiles you can be sure prices would be a lot higher, service would still be rubbish but an awful lot more people would still be employed by the company.

Competition leads to economic gains for all (except perhaps the employees and owners of monopoly companies) through increased efficiency. If you fix prices there will be less innovation, fewer new entrants and higher prices overall - seems like a high price to pay for 'fairness'.

Millions waste a fortune each year overpaying for iPhones that they have no need of - should the state intervene to prevent them being taken advantage of?

POPPYOSCAR

michaels wrote: »

If for example BT had remained the monopoly supplier of telephony including mobiles you can be sure prices would be a lot higher, service would still be rubbish but an awful lot more people would still be employed by the company.

Competition leads to economic gains for all (except perhaps the employees and owners of monopoly companies) through increased efficiency. If you fix prices there will be less innovation, fewer new entrants and higher prices overall - seems like a high price to pay for 'fairness'.

Millions waste a fortune each year overpaying for iPhones that they have no need of - should the state intervene to prevent them being taken advantage of?

I disagree.

I used to pay a lot less for my phone and fuel than I do now.

vivatifosi

I have an all electric house with E10. Switching isn't that easy in a market with a handful of suppliers, and where the suppliers expect you to pay for a new meter as part of the switch.

michaels

mrginge wrote: »

I realise it's a bit socialist, but I don't think people should have to spend their time shopping around for fundamentals like energy.

If you want to see how well it works when the state fixes prices I suggest you emigrate to Venezuela....