Energy Companies Failing To Offer Price Capped SVT Only Offering More Expensive Fixed Contracts

molerat

https://uk.finance.yahoo.com/news/desperate-energy-firms-push-deals-105757660.html

tghe-retford

There's a saying around Internet free speech advocates, if we are presented with a roadblock, we just route around it.

The same concept around profitability applies to energy companies. If the standard variable tariffs (SVT) are loss making, they'll just promote their more expensive deals and hide away as much as legally possible the SVT in the hope you will either get so frustrated and quit applying for it or will have to work exceptionally hard to find it. As the request to axe the price cap has gone on deaf ears and there is no prospect of dealing with unprofitable fixed term customers in contract, energy companies will now maximise damage limitation and will now find alternative avenues to make profit. Like I say, they will route around the price cap and the unprofitable avenues.

QrizB

tghe-retford said:

If the standard variable tariffs (SVT) are loss making, they'll just promote their more expensive deals and hide away as much as legally possible the SVT in the hope you will either get so frustrated and quit applying for it or will have to work exceptionally hard to find it.

The flaw in that plan (if it is their plan) is that everyone finishing a fixed-rate deal will automatically move onto their standard variable rate if they don't switch or fix. And if the SVR is cheaper than the fixed deals, they won't switch.

dbks

I think the Scottish Power spokesperson is correct.

I think default tariffs only need to be made available where:
1. You move into a new property and you fail to agree a different tariff
2. You have come to the end of a fixed term tariff, and you fail to agree a new tariff with that supplier.