What's the point in multiple energy suppliers now?

in_my_bumble_opinion

All they'll really be doing for the next 2 years is administering a fixed price to their various customer bases.

No real value in switching, no fixed deals, no EV tariffs, etc.

Of course there are a few exceptions to the above, such as legacy fixed deals below the new cap or whatever, but basically the vast majority of us will be getting exactly the same service from every supplier.

So the only real point in having all these different suppliers is for when things get back to 'normal' in two years, right?

Well, no doubt some savvy MSE forumites have played the switching/fixing game well for the last few years and will be ok with a return to all that, but I would contend that for the majority of people in Britain, the multiple suppliers system is/has been confusing, messy and stressful to a greater or lesser degree.

So I'm asking this question, what is going to be the appetite in the country for a return to the way things have been?

I think people are going to quickly get used to having flat rates for gas and electricity set by the government and will not enjoy the idea of going back to the way things were.

Thoughts?

mmmmikey

I haven't really formed a strong view on this, but it could be that the scare around rising prices has forced people to engage and understand how the market works better. So there is a counter argument that says that going back to where we were would be better than it ever has been (or not as bad depending on your perspective).

Ultrasonic

I'd guess energy suppliers will still be having to work to actually purchase the energy they sell on, although I'm not sure what incentive may exist to do so as cheaply as possible.

Administering customer accounts is also no small task, particularly at a time when many may be getting into financial difficulty. Something tells me that most energy supplier staff aren't currently looking forward to a stress-free couple of years!

Thinking long term, a form of price competition will likely always appeal to those willing to put a bit of effort into trying to save money, whilst a single price would probably appeal more to those who aren't. 

The_Green_Hornet

if there is no price competition then all that is left is customer service competition but unless Ofgem instructs the suppliers to allow switches on the SVT then that isn't there either.

Enjoy your two years in stasis.

MWT

in_my_bumble_opinion said:

All they'll really be doing for the next 2 years is administering a fixed price to their various customer bases.

No real value in switching, no fixed deals, no EV tariffs, etc.

Of course there are a few exceptions to the above, such as legacy fixed deals below the new cap or whatever, but basically the vast majority of us will be getting exactly the same service from every supplier.

What makes you think that there isn't still going to be room for innovation like the EV tariffs?

in_my_bumble_opinion

MWT said:

in_my_bumble_opinion said:

All they'll really be doing for the next 2 years is administering a fixed price to their various customer bases.

No real value in switching, no fixed deals, no EV tariffs, etc.

Of course there are a few exceptions to the above, such as legacy fixed deals below the new cap or whatever, but basically the vast majority of us will be getting exactly the same service from every supplier.

What makes you think that there isn't still going to be room for innovation like the EV tariffs?

I suppose I'm basing that on the current reality. There are no EV tariffs currently available for new/switching customers (unless you get friendly/lucky on twitter with someone from Octopus). I'm struggling to see the incentive for suppliers to provide them in the near future, though I could be wrong of course.

sienew

in_my_bumble_opinion said:

All they'll really be doing for the next 2 years is administering a fixed price to their various customer bases.

No real value in switching, no fixed deals, no EV tariffs, etc.

Of course there are a few exceptions to the above, such as legacy fixed deals below the new cap or whatever, but basically the vast majority of us will be getting exactly the same service from every supplier.

So the only real point in having all these different suppliers is for when things get back to 'normal' in two years, right?

Well, no doubt some savvy MSE forumites have played the switching/fixing game well for the last few years and will be ok with a return to all that, but I would contend that for the majority of people in Britain, the multiple suppliers system is/has been confusing, messy and stressful to a greater or lesser degree.

So I'm asking this question, what is going to be the appetite in the country for a return to the way things have been?

I think people are going to quickly get used to having flat rates for gas and electricity set by the government and will not enjoy the idea of going back to the way things were.

Thoughts?

Given switching saved most people hundreds of pounds a year previously, I imagine there will be massive demand to return to how things were. Those who didn't switch previously will probably have experienced flat rates (the price cap) anyway so won't notice a difference.

Our previously highly competitive market has given us some of the cheapest energy in Europe for the last 20 years. People will be very keen to return to that.

I would argue that we aren't all getting the same service from every supplier now. I was with SSE a few years ago and they were quite terrible, I'm with Eon Next/Sainsburys now and the customer support and service is 100x better. I wouldn't describe them as being the same at all.

All the people who are now stuck either with their existing supplier or because they were moved to a supplier of last resort who potentially experience issues or have complaints about their supplier will realise the issue of living in a world where there is no other suppliers or options to switch and how bad that can be.

MWT

I would let the dust settle on these changes then we'll see how things look.

I certainly wouldn't bet against Octopus finding ways to be creative and competitive even in this environment.

Sterlingtimes

There are considerable differences in Economy 7 tariffs between suppliers. E.ON is far better than Octopus for those who use far more at night than during the day.

Ultrasonic

Sterlingtimes said:

There are considerable differences in  Economy 7 tariffs between suppliers. EDF is far better than Octopus for those who use far more at night than during the day.

I wonder if this will remain true under the new cap?

Sterlingtimes

Ultrasonic said:

Sterlingtimes said:

There are considerable differences in  Economy 7 tariffs between suppliers. EDF is far better than Octopus for those who use far more at night than during the day.

I wonder if this will remain true under the new cap?

I also wonder. For my 94-year-old mother, who uses 80% of her electricity at night, E.ON is considerably cheaper at present.