Cheaper energy deals for switchers delayed as regulator maintains ban

MSE_Emily

Rules that prevent energy firms from offering cheaper deals to new customers will remain in place until March 2025, regulator Ofgem has confirmed. It means you're less likely to be able to cut your bills by switching supplier for the time being – though there are still some deals worth considering now...

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Cheaper energy deals for switchers delayed as regulator maintains ban

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bob2302

Personally I think that's a good thing.

Swipe

bob2302 said:

Personally I think that's a good thing.

Care to elaborate?

Bendo

Swipe said:

bob2302 said:

Personally I think that's a good thing.

Care to elaborate?

Mostly it adversly affects the elderly who aren't as tech savy and won't switch. It's much fairer to require the same price to be charged to existing and new customers.

MP1995

Bendo said:

Swipe said:

bob2302 said:

Personally I think that's a good thing.

Care to elaborate?

Mostly it adversly affects the elderly who aren't as tech savy and won't switch. It's much fairer to require the same price to be charged to existing and new customers.

Do you think this is still true, what age do you call elderly, pensionsers?

The reason I ask is that both parents are pensioners and they know they have to switch to save on a number of insurance and mobile phone products for example and energy.

Maybe a generation ago or maybe those of age ?

MattMattMattUK

I think this is a good thing and should be extended to all services. I think businesses should not be able to restrict deals to "new" customers provided they have completed their initial contract period. I do not mean people should be automatically moved, they should still have the choice, but if a deal is available to new customers it should also be available to existing customers.

wrf12345

It seems to be filtering through, my motorcycle and house insurers are both offering the same deal to me as new customers (both have actually gone down by a few quid not up by forty percent). Nearly seventy and start the day on the internet, hunting down bargains, doing my social media, etc and know people in their eighties who are fine with the internet. Some people can't be bothered changing, others have misguided faith in the large, established companies and just use the power of their inflation linked pensions to deal with increases. Ofgem, IMO, messes up everything it touches but that is nothing new in quasi govn bodies and quango's.

mmmmikey

wrf12345 said:

It seems to be filtering through, my motorcycle and house insurers are both offering the same deal to me as new customers (both have actually gone down by a few quid not up by forty percent). Nearly seventy and start the day on the internet, hunting down bargains, doing my social media, etc and know people in their eighties who are fine with the internet. Some people can't be bothered changing, others have misguided faith in the large, established companies and just use the power of their inflation linked pensions to deal with increases. Ofgem, IMO, messes up everything it touches but that is nothing new in quasi govn bodies and quango's.

Age is in the mind - sounds to me like you're still young ( but probably towards the top end )....

Scot_39

Swipe said:

bob2302 said:

Personally I think that's a good thing.

Care to elaborate?

30 failed suppliers and the resultant market instability for one.

In many cases in part due to Ofgem setting a low benchmark for financial reserves and u hedged supply basis.To underpin their previous switch to save mantra.

If people are offered a switching discount

Do you think
a) the company eats that as a reduced profit
Or 
b) loads the pricing and costs onto other customers


Our energy bills are already full of cross subsidies - for green power levies,CfDs etc - wind CfD alone £37 in £613 wholesale total for gas and electric (so maybe 10% of electric wholesale costs), plus network costs of integrating green farms, 

To pay for others ho.es to be insulated (in the policy cost)

for those in debt - £27 unless on prepay,

£10 for prepay levellisation if not on prepay etc

We don't need discounts for switchers adding even more.

So a long as costs are strictly limited within current cap operational amounts - say marketing budget compenent of said  costs at current levels  and these don't rise fine.


And in any case the discounts haven't really disappeared - what do you think the referral code systems effectively achieve ?

born_again

Good news.
New customers should not get better deals, as per other area's that are regulated.