MSE News: Ofgem to change rules on 'personal projections' showing what you'll save

Former_MSE_Megan_F

Rules which mean energy customers are sometimes given the WRONG figure for potential savings if they switch tariff or provider are set to be changed...

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'Ofgem to change rules on 'personal projections' showing what you'll save switching energy deal'

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[Deleted User]

So the current proscribed way is incorrect (for people on a fixed term contract) BUT works for those on standard variable tariffs.

Now the bulk of the energy consumers are on standard variable tariffs so the current rules work for the vast majority of energy users. Who still never switch even though they are paying over the odds and the switching sites show their true savings/losses.

And the answer is to let the switching sites all have their own individual methods of calculating future savings/losses?

How does that make things better?

It makes it harder to compare across switching sites and add in the fact that sites can now drop any tariff they see fit, it just makes the current less than idea situation, worse. And you still will not get the people who should switch to switch. OFGEM will have confused them even more by every switching site returning different results! So they will run for the hills again.

Is it April 1st already?

System

Complete madness. What is the point of a Regulator that refuses to check whether people have the means to become a reliable energy supplier; that refuses to take reports of regulatory non-compliance seriously and now wants to give suppliers free reign to issue price comparisons in anyway that they deem suitable? If potential switchers were already wary of switching then this initiative is hardly going to inspire confidence. The present - and flawed - method of annual projections was brought in because some suppliers were not operating honourably. I doubt that they have all become good overnight. Give them free reign, then I can see that The Energy Ombudsman is going to be very busy adjudicating on whether suppliers have acted reasonably.

Please MSE, use your best endeavours to get consumer groups to stop this latest piece of Ofgem madness. The solution to this problem is already in place and used by most MSErs coming to the end of a fixed term contract: it is the 12 month cost of the present tariff compared to 12 months on the new tariff.

PS And will you are at it, please try to persuade anyone that will listen that Ofgem is not a suitable Regulator for the domestic consumer. It appears to lack the appetite and will to take consumer matters seriously.

robin58

Yet another Ofcom and shall I say MSE initiative which in the end will cost me more.

Why not challenge all the fuel suppliers to give me a good offer in the first place, without having to move to a possible worse provider just so I can get a saving.

Nero fiddling whilst watching Rome burning to me.

phillw

"While correct if looking over a year, it's a bad move – switch now and you'll pay MORE for four months, so you should wait."

Unless the prices are going to increase in four months time, in which case you'll save over the next four months but will pay MORE for the following 12.

To get the best deal you need both calculations and also calculate switching between single and dual suppliers. Plus an accurate prediction of the future.

MothballsWallet

I'm still trying to work out which is more useful:

Ofcom
Ofgem
A wilting trouser sausage

My money's on the last one personally.

robin58

MothballsWallet wrote: »

I'm still trying to work out which is more useful:

Ofcom
Ofgem
A wilting trouser sausage

My money's on the last one personally.

I usually found that any regulator with an 'OF...' in it's name has always costed me more money in the end.

All they do is create rules that the regulated just circumnavigate by the next weeze they came up to avoid the regulator new rules.

It's a cat and mouse game with me in the middle paying the price.

Consumerist

I think Ofgem's strategy is fairly simple: to keep making things worse for consumers so they will need to have "reviews" on a regular basis. If they accidentally happened to get it right, there will no longer be a job for them.

So, the "stickies" still won't switch and those of us who can be bothered will continue to get better deals than those who can't. Hoorah for that, at least.