Price Comparison Website Taking a Break

Wilt

tghe-retford said:

I have to wonder now if Ofgem is being lobbied by energy companies to allow the premature ending of current fixed deal contracts (without penalty) or risk the collapse of a significant percentage of the energy market

There wouldn't be much point in that as it isn't within Ofgem's gift to provide - the ways a supplier can exit from their contract with you is set out in the Terms and Conditions both you and the supplier agreed to when you signed up.

If we enter a world where we can just start unilaterally changing contracts I might make my own tweaks, starting with my standing charge and unit rates being modified to 0.

QrizB

Wilt said:

tghe-retford said:

I have to wonder now if Ofgem is being lobbied by energy companies to allow the premature ending of current fixed deal contracts (without penalty) or risk the collapse of a significant percentage of the energy market

There wouldn't be much point in that as it isn't within Ofgem's gift to provide - the ways a supplier can exit from their contract with you is set out in the Terms and Conditions both you and the supplier agreed to when you signed up.

For example, Octopus's T&C state:

11.3 We will not change the prices applicable to your Contract while you are on a Fixed Rate Tariff

jamesperrett

Any sensible and solvent supplier would probably have bought enough energy already to cover their fixed price contracts. The problem is with barely solvent companies who haven't been able to afford to buy ahead.

Sea_Shell

So if you're with a "big 6" company and come to the end of your fixed rate tariff, then you are pretty much stuck being moved on to their variable rate if all the options around switching have been taken away.

It's like being forced to renew your car insurance, regardless of the price, because all the other companies are refusing to quote.

bristolleedsfan

Sea_Shell said:

So if you're with a "big 6" company and come to the end of your fixed rate tariff, then you are pretty much stuck being moved on to their variable rate if all the options around switching have been taken away.

Plenty of options to switch, increasingly over recent months more and more energy suppliers have been offering cheapest tariffs direct, not via comparison sites save on switching commission which is evidenced via uswitch when tick box within filters to show all tariffs including those cannot switch via uswitch.

This winter SVR tariff will be cheaper than most newly taken out fixed rate tariffs as suppliers can, and have been charging what they want for fixed rate tariffs.

Inigo_Montoya

I suspect the best we can hope for is that wholesale energy prices come back down, possibly after the winter ?, to more "normal" levels - then hopefully we should see new deals being offered 

the companies going bust recently have done so at the worst possible time leaving people like me previously on fairly decent fixed rates now being transferred to the SOLRs standard variable rate which will likely increase over the coming months & from  which there is no escape for probably at least a few months while the transfer takes place - also there are no cheaper deals to escape too anyway

tghe-retford

Swipe said:

If entered into a fixed rate contract it's legally binding. Absolutely nothing Ofgem can do to change that.

One that I can exit (in many cases after paying a fee and giving notice) for any reason but the supplier cannot in extraordinary circumstances. Not viable.

Even for the big six (As already mentioned, EDF and SSE have pulled their own quotes) and the only option we will have is to pay out a lot more for energy which will hit everything because everything requires energy and life will become a lot more expensive with the consequences that brings. Blaming customers for not sacrificing all their spending elsewhere and paying for the most expensive tariff from the big six is not a solution.

[Deleted User]

Inigo_Montoya said:

I suspect the best we can hope for is that wholesale energy prices come back down, possibly after the winter ?, to more "normal" levels - then hopefully we should see new deals being offered 

the companies going bust recently have done so at the worst possible time leaving people like me previously on fairly decent fixed rates now being transferred to the SOLRs standard variable rate which will likely increase over the coming months & from  which there is no escape for probably at least a few months while the transfer takes place - also there are no cheaper deals to escape too anyway

The reason that suppliers are going bust is because they have failed to purchase enough energy at an affordable price to meet their contracted requirements.  As customers come and go, it can difficult to calculate how much energy needs to be hedged and how much into the future. These are the perfect ingredients for a company failure. Ofgem has also required them to be less aggressive when it comes to pursing consumer debt. In sum, the market has changed dramatically.

FWiW, the wholesale price of gas today is 5.396p/kWh - up from 4.774p/kWh a week ago - and up from 1.019p/kWh a year ago today.

SoLRs cannot afford to offer tariff protection. If it was offered, then there would be a claim for repayment that would only add costs to all customer bills. I know that it is little comfort but my guess is that supplier failures have only just started. Many suppliers were making a trading loss before the market turned so dramatically upwards.

spot1034

Interesting discussion at the start of Radio 4's Moneybox, which should be available to listen again after the programme ends.   https://www.bbc.co.uk/programmes/m000zsx4

Swipe

tghe-retford said:

Swipe said:

If entered into a fixed rate contract it's legally binding. Absolutely nothing Ofgem can do to change that.

One that I can exit (in many cases after paying a fee and giving notice) for any reason but the supplier cannot in extraordinary circumstances. Not viable.

The exit fee forms part of the contract. I see nothing about the suppliers having an exit clause.