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Cheaper energy deals for switchers delayed as regulator maintains ban

MSE_Emily
MSE_Emily Posts: 201 MSE Staff
Third Anniversary 10 Posts Photogenic
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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Comments

  • bob2302
    bob2302 Posts: 439 Forumite
    100 Posts Name Dropper First Anniversary
    Personally I think that's a good thing.
  • Swipe
    Swipe Posts: 5,468 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    bob2302 said:
    Personally I think that's a good thing.
    Care to elaborate?
  • Bendo
    Bendo Posts: 456 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    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
    MP1995 Posts: 495 Forumite
    100 Posts Name Dropper
    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 ?
  • wrf12345
    wrf12345 Posts: 726 Forumite
    Sixth Anniversary 500 Posts
    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
    mmmmikey Posts: 2,072 Forumite
    Part of the Furniture 1,000 Posts Homepage Hero Name Dropper
    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 :smile: )....
  • Scot_39
    Scot_39 Posts: 2,716 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 31 July 2024 at 12:08PM
    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
    born_again Posts: 18,307 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Good news.
    New customers should not get better deals, as per other area's that are regulated.
    Life in the slow lane
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