MSE News: New energy heavyweight promises to 'roll over' customers onto cheapest deal

MSE_Andrew

Engie, one of the biggest power companies to rival the 'Big Six' energy giants for years, is launching a new 'roll over' deal which switches existing customers onto its cheapest deal when an offer ends...

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'New energy heavyweight promises to 'roll over' customers onto cheapest deal when tariff ends''

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teddysmum

This is of little or no use, as, at the moment, your company informs you well before a fix ends, giving the option to take the best new fix with them, anyway.


This company is only promising to put customers onto its own cheapest tariff, which may well be much higher than found elsewhere.

footyguy

Though regulator Ofgem rules stops firms from rolling customers onto another fix once their current one ends, Engie has said it will move customers onto a 'price equivalent' of its cheapest available deal, with no exit fees if they want to switch.


This means that when the fix ends with Engie, you'll be moved onto a variable tariff - in line with Ofgem rules - but that tariff price will only cost as much the supplier's current cheapest deal.

If I understand this correctly, the tariff you are rolled over to is a special variable tariff.
This special variable tariff is price matched to the cheapest tariff the supplier is currently offering.

So presumably, as a tariff is replaced (often for a higher priced one) then the vraibale part kicks in, and the customer then will be charged at the new (higher) rates.

In which case, I'm not sure the assertion

Paul Rawson, Division CEO of Energy Solutions at Engie UK said:...
"...Our Rate Rollover Promise takes the onus away from the customer to switch tariff to get a better deal. ..."

If you want the surety of a fixed rate, you will still need to request a fixed rate tariff (but perhaps that is what the supplier is hoping customers won't do with this latest ruse)

Pincher

You still have to lure the customer in, so the simplest thing is a first year discount. So, when you join, the tariffs are

Standard tariff: £1,200
Sucker tariff: £1,100
You pay: £1,000 = £1,200 - £200 discount

In year two, you pay the Sucker tariff, which is the cheapest tariff offered.