Energy news in general

SJMALBA

The fact that Centrica is so enthusiastic about this is something of a red flag, for me; then again, maybe I'm just an incorrigible cynic?

pochase

Keeping competition down?

They have the money to fund there operation that other suppliers might use customer credit for. I would assume that Shell will also like this.

bristolleedsfan

SJMALBA said:

The fact that Centrica is so enthusiastic about this is something of a red flag, for me; then again, maybe I'm just an incorrigible cynic?

It is something Centrica are already doing -

"It has voluntarily protected £200m of customers’ money in a separate bank account.

O’Shea said: “It’s not our money, it’s our customers’ money. Energy customers have overwhelmingly said that they expect their credit balances to be fully protected and it’s time we all acted in the interests of customers.”

Xbigman

Its also been reported as £300m. With their customer base of around 4.3 million that's £70 per customer protected (using the higher £300m figure). Are they honestly saying the average customer is only £70 in credit. I find that hard to believe. 


Darren

pochase

Coming out of winter with credits at their lowest that is very possible I would say.

wild666

I can think of one company, OFTM, that will not be happy they like to increase DD's to way above what the customers actual usage is. In my case back in 2018 they wanted a 70/30 split of £120 winter and £70 summer a whopping £1400 plus given that my yearly usage was a third of what they wanted, in winter I would have paid for the yearly usage in a little over 3 months. My yearly usage was only 2100 kWh electric and 1500 kWh gas and their kWh prices were 10.4p E and 2.01p G with a £6.99 monthly fee on the electric.

I think that companies sometimes try and factor in the next price increase when they do a DD increase but they should wait until the increase happens not applying it months in advance to get the user to build up a credit that they might not use by the time 12 months are up.

Xbigman

pochase said:

Coming out of winter with credits at their lowest that is very possible I would say.

Its June so I don't think this is exactly coming out of winter, plus it was one of the mildest winters on record. What is a typical DD right now? Over £70 I'd say. Centrica are therefore claiming their average customer is less than one month in credit. A lot of companies now require you to be at least one month in credit. 
I'm merely pointing out £300m (or £200m) looks a big number, but isn't that big given the scale of the company making the claim.


Darren

bristolleedsfan

Xbigman said:

pochase said:

Coming out of winter with credits at their lowest that is very possible I would say.

Its June so I don't think this is exactly coming out of winter, plus it was one of the mildest winters on record. What is a typical DD right now? Over £70 I'd say. Centrica are therefore claiming their average customer is less than one month in credit. A lot of companies now require you to be at least one month in credit. 

Octopus Energy system ( unlike British Gas system which was built on payment on receipt of bill) was built on customers making first monthly payment on day of switch. ( Yes customers have been able to choose a later date for first payment however only if they ask)

This is what Octopus have said   https://www.cityam.com/octopus-energy-locks-horns-with-centrica-over-market-reforms-as-bidding-war-for-bulb-llights-up/

"Octopus noted its customers are in debt to the company most of the year and owed the firm £670m at the end of winter – undermining the notion it could even use credit balances to fund wider commercial ambitions"

agentcain

pochase said:

Keeping competition down?

They have the money to fund there operation that other suppliers might use customer credit for. I would assume that Shell will also like this.

I would much prefer this than what all these scammers have been doing all these years in the name of "competition", which brought little benefit to the consumer. If you didn't notice, we are all paying increased standing charges because energy cowboys went bust, taking off with customer balances which were mostly positive, given that it was the end of summer. These credits should always have been a separate entity, not accessible to the company for investment etc.  

superkoopauk

Greg Jackson not happy about Ofgem's proposals

https://www.current-news.co.uk/news/octopus-energy-criticises-crude-ringfencing-calls-as-it-pushes-for-rigorous-market-reform