Energy news in general

Sea_Shell

Would it effectively mean that supplier B might otherwise have been £100 cheaper, but if they have to "compensate" supplier A for my leaving, they'd have to pay them £85, so will only be offering it to me at £15 cheaper....plus any exit fees I may have to pay to A.   So if more than £15 I wouldn't bother.

Xbigman

Sea_Shell said:

Would it effectively mean that supplier B might otherwise have been £100 cheaper, but if they have to "compensate" supplier A for my leaving, they'd have to pay them £85, so will only be offering it to me at £15 cheaper....plus any exit fees I may have to pay to A.   So if more than £15 I wouldn't bother.

That is exactly what it means.



As mentioned above, there is an assumption (by some people including ML) that it will apply to standard variable rates as well so as to stabilize the market. IE no energy company can enter the market and under cut everyone else and disrupt the market. However, that makes no sense and needs to be clarified. Remember, these are proposals and not set in stone rules. What will happen is anybody's guess.
My opinion - the days of cheap fixes are dying before our eyes.


Darren

PS  Thought for the day. What if I switch to a dearer tariff for better customer service. Does the company I'm leaving have to pay 85% to get rid of me?

QrizB

I guess the take-home is, if you're currently on the SVT, pick a supplier now that you expect to offer a decent deal in the winter.

I'm sure opinions will vary but for me, with only my gas currently on a variable tariff, I've chosen Octopus Tracker (to make the best use of the low summer gas prices) with a plan to change to Octopus Flexible if/when prices rise again in the colder months.

When my current electricity fix expires in September I'll consider a similar approach for that fuel too. (Unlike many of you I'm pretty much committed to Octopus for electricity, having taken a stake in Ripple's latest wind farm.)

StartledJesus

Xbigman said:

OFGEM's solution will stop cheaper tariff's coming through quickly but will protect the energy companies from going bust. That is part of OFGEM's remit too.

You could have fooled me! What happened in the second half of 2021? Of course, it could be argued that Ofgem should never have granted half the licences it did in the first place, to a motley crew of chancers and builders of houses of cards.

pochase

How would the market stabilisation work when the customer changes from one SVT to another with a different supplier?

For how long would the old supplier be protected, when could the customer go onto a fixed tariff after changing suppliers.

What happens when the customer changes to the next supplier? Does the first supplier keep the 85%, and the second supplier gets 85% of the remaining 15%?

At the moment that seems to be a wild idea with no real concept behind it.

StartledJesus

Bust energy firm bosses - where are they now? 

https://www.theguardian.com/business/2022/may/21/power-failures-what-are-the-bosses-of-britains-bust-energy-firms-doing-now 

Mstty

Now the BBC are suggesting £2800 or more for the price cap in October.....

Unless this was the line E.ON gave them for the interview and they haven't done their homework

BBC News - E.On UK boss warns 40% of customers face fuel poverty

https://www.bbc.co.uk/news/business-61541294

Mstty

StartledJesus said:

Bust energy firm bosses - where are they now? 

https://www.theguardian.com/business/2022/may/21/power-failures-what-are-the-bosses-of-britains-bust-energy-firms-doing-now 

Its an endless cycle for most of these people, they don't invest themselves just pocket lots of money and walk away Scot free....rinse and repeat.

bristolleedsfan

Mstty said:

Now the BBC are suggesting £2800 or more for the price cap in October.....

Unless this was the line E.ON gave them for the interview and they haven't done their homework

BBC News - E.On UK boss warns 40% of customers face fuel poverty

https://www.bbc.co.uk/news/business-61541294

Spring statement 28 March ish mentioned predicted figure of £2800 for October, BOE have been mentioning that as expected figure ever since.

Sea_Shell

bristolleedsfan said:

Mstty said:

Now the BBC are suggesting £2800 or more for the price cap in October.....

Unless this was the line E.ON gave them for the interview and they haven't done their homework

BBC News - E.On UK boss warns 40% of customers face fuel poverty

https://www.bbc.co.uk/news/business-61541294

Spring statement 28 March ish mentioned predicted figure of £2800 for October, BOE have been mentioning that as expected figure ever since.

Maybe OFGEM have been "told" that's what it WILL be, regardless of underlying fuel costs.   How they slice and dice it will be up to them!!! 🤣🤣

"Just make it convincing...the suckers have no choice"
😉