MSE News: 60% of customers could save £300 by switching energy suppliers

Former_MSE_Megan_F

Three out of five customers are still paying up to £300 too much for their energy despite near-record switching rates this year...

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'60% of customers could save £300 by switching energy suppliers'

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michaels

Last year when I fixed for 12 months the best fix was nearly 40% below the average SVT. This year the best fix is only 20% below SVT. I blame do-gooders for meddling in the market trying to save those who are too rich to bother to shop around from the consequences of their laziness.

Caddyman

This continued push to 'persuade' energy customers to switch to a cheaper tariff or provider is in my view, flogging a dead horse.

I haven't actually switched energy provider for several years. I'm with Npower and up until last year when I switched to a very low tariff for two years, I continually ensured I was on their cheapest tariff, sometimes swapping tariffs 3 times a year as a cheaper product came along.

The biggest problem out there, are the people who are, as has already been highlighted, too rich to even care or bother about what tariff they are on and are brass enough to admit they don't care what they're paying. The people who are genuinely unaware that they can switch tariffs or energy companies reasonably easily. And probably by far the largest group, who are just too lazy to even bother or are financially inept, but will sit back and moan because their energy bills are too expensive. That last group of customers do not deserve any help whatsoever and in my view deserve to be paying over the top because they are too lazy to do anything about their situation.

I have a former colleague who falls into that last group. He constantly cited that he didn't have the time to change tariff or provider (yet he had enough time to organise/book family holidays etc). It was only when I convinced him to sit down at his computer, got him to use the excellent CheapEnergyClub website, plugged in his energy use and then did a comparison, that he realised he was actually paying about £400 a year over what he could have been paying. And yet still, despite the fact he had a free phone number to call the energy company, he just said, 'I'll get round to it later' He admitted to me later that he hadn't bothered, and this is why people like him do not deserve any help at all. I wouldn't mind, but he isn't a financially well off bloke, he has a family and pays a mortgage. I'm of the opinion, you cannot help those who do not wish to be helped.

Consumerist

My thanks to all those who can't be bothered to switch; without them I would have to pay more.

brewerdave

@caddyman - its not just those who are too lazy/rich to switch -there are also a large chunk of the population who believe that its too risky to change away from the "default" suppliers (BG and their historic Local Electricity Board) - I've tried innumerable times to get an older relation to switch but its like hitting my head against the proverbial brick wall!!

Caddyman

brewerdave wrote: »

@caddyman - its not just those who are too lazy/rich to switch -there are also a large chunk of the population who believe that its too risky to change away from the "default" suppliers (BG and their historic Local Electricity Board) - I've tried innumerable times to get an older relation to switch but its like hitting my head against the proverbial brick wall!!

I don't deny that there are people out there who think it's too much of a 'risk' to switch, but maybe that idea is often used by a chunk of the population as an 'excuse' for the fact that they can't be bothered to even look at an alternative?

I could have easily switched from Npower a long time ago, but keeping on top of their tariffs and ensuring I switched to their cheapest tariff at every opportunity, negated the need to move. Had I moved supplier prior to my fix in June last year, I'd have actually at the most, only saved myself a maximum of around £30 a year, so from my own perspective, one could argue that I too was 'lazy' for not switching away to save myself a few quid. But there's the thing, in the grand scheme of things, it was just a few quid, not the £200 or £300 some people could actually save.

As it stands, there is not a single energy company out there, including the small independent suppliers, that can either match or undercut my present Npower tariff, I fixed at exactly the right time. I understand and as has been covered in other threads, that some of the small independent companies are good on customer service and indeed some of them are cheaper than the 'Big 6', but there are plenty of people who won't switch to them for their own personal reasons.

When my current Npower tariff comes to an end, if a different energy company can significantly undercut my present supplier, then I will move, but it would have to be a saving of over £50 to entice me to move. I'm happy with Npower, they've done me no ill and their billing and service are just fine for me personally.

I think if most people, who obviously aren't yet on Smart Meters, took the initiative and actually bothered to send in monthly meter readings as I do, they would soon realise just how much or little their energy use is. I know people who never bother reading their meter and just pay the estimated bill until a meter reader actually turns up. Friend of mine did that for nearly two years and recently found themselves in 'fuel poverty, owing hundreds of pounds in arrears through their lack of personal initiative. But of course it wasn't their fault, it was the energy companies fault for not sending a meter reader round! When I asked my friend why they never read their own meter and submitted regular readings, the answer was 'That's not my job, it's the meter readers'. I give up, I really do.

michaels

There also seems to be a misunderstanding that everyone could get the cheapest tariff. These are 'new customer offers', loss leaders to gain new customers. Obviuosly it would not be possible for all customers to be on a loss leader tariff so in reality it is pretty much a zero sum game, any reduction in tariff for those lazy enough to be on a standard tariff means a price increase for those who shop around.

phillw

michaels wrote: »

Obviuosly it would not be possible for all customers to be on a loss leader tariff

True, Companies pull offers when they become over subscribed. However I don't think MSE are hoping to get everyone to switch, they just want to make it look like they are making progress and a lot of these people have never ever switched.