MSE News: Energy users are put off switching because they haven't heard of the...

Hengus wrote: »

I am not questioning your decision, I am questioning the underpinning logic behind it. Why would GBEnergy’s customers be ‘miffed’ (and I was one of them) when the Supplier of Last Resort (Coop Energy) took over the supply to customers, with no supply break, and on the same fixed tariff terms. Customers had to do nothing but allow their monthly DD payment to go through. When the tariff term ended, the standard 49/42 day notice was given and all credit was refunded if the supplier was changed.

By way of comparison, if my broadband/phone supplier is forced into insolvency as I am typing this ( the day after my monthly payment was taken), then I will lose my broadband and phone service for at least 12 days and any credit owed to me will be added to the long list of unsecured creditors. I will also have to enter into a new minimum term contract with another telephone/broadband supplier.

https://www.choose.co.uk/news/186k-fast-firenet-collapse.html

‘Big’ does not necessarily mean financially secure. Have a look at the link below re NPower’s financial situation:

http://www.telegraph.co.uk/business/2017/08/11/loss-making-npower-warns-against-meddling-energy-market/

Under UK contract law, the parent company (UK or foreign) is not normally liable for the debts of one of its subsidiaries.

With respect, just because you weren't 'miffed' at GB Energy's collapse, please don't assume that everyone has the same attitude you clearly have. I would have been miffed personally, even though there is a 'safety net' in place. At the end of the day, you had zero control about who took your account. The 'safety net' quite literally forced it upon you. Agreed, you lost nothing, but your supplier shouldn't have gone bust in the first place.

Also, I fail to understand why you keep referring to the non existent arrangements regarding the collapse of other utilities such as broadband? You've mentioned it in other threads on the same subject. In my view, those arguments are irrelevant to this context. Honestly? I couldn't care less whether or not my broadband has in place the same 'saftey net' as the energy industry. We're not talking about their lack of protection, we're discussing the reasons why people aren't necessarily keen to switch to energy companies they've hardly heard of. I'm one of those people. You may find my attitude illogical and without substance, but that's the way I think.

As for Npower's current issues highlighted in your link, I was already aware, it's not exactly a secret, but it isn't going to make me switch away anytime soon. I personally wasn't affected by their 'calamitous' IT roll out in 2013. Not a single issue with billing in that respect. Obviously I feel sorry for those who were. As for Npower selling energy at a loss because of stiff competition from new start companies, well my heart bleeds for Npower, especially when I'm on a stupidly low tariff they offered up for two years in June last year. Tough on them!

As for the small independent energy providers, it's interesting to read in the Guardian link that I provided, what the CEO of Co-op Energy said, 'that some small suppliers had told him they did not want to grow beyond 250,000 customers because, if they did, the obligations mean they would no longer be able to compete on price'. You should therefore be thanking 'illogical' folk like me for helping to ward off that possibility.

I've no desire to enter into a 'tit for tat' with you. We have differing opinions. You've made the leap into the independent energy supplier pit, I'm just not joining you. I wish you luck with whomever you choose to take your energy from.

Hengus wrote: »

I am not disagreeing. Ofgem itself has said that it awards Supply Licences on the basis of a completed application form and a £450 licence fee but in doing so it is not giving any guarantees that the Licence Holder is ‘a fit and proper person to run a company’. My point is that the level of protection now offered to domestic energy customers far outweighs the protection that you and I have for such things as insurance, broadband and mobile phone contracts. If any of these businesses go into liquidation then we are on our own. No credit protection plus the need to take out a new contract with A N Other. With energy, the insolvency process is seamless. Ofgem appoints a supplier of last resort and even the DD mandate does not have to be re-written.

So what are the actual risks? Put simply, bad billing and poor customer service. I, and others, had issues with Iresa’s incorrect use of calorific values and this led to a complaint to The Energy Ombudsman (at a cost of £460 to the supplier).

I do have an ongoing concern about Powershop which Ofgem has been considering now for over 2 months. If I don’t get an answer shortly, then I will just switch away. The only thing that keeps me with them is their excellent customer service. That said, like many new companies, it is worth looking to see whether there is more to them than just a man with a laptop. Powershop is a well established NZ/AU energy supplier.

Hengus wrote: »

This is not a ‘tit for tat’: it is a balanced discussion, I hope, about the misconceptions that are putting people off choosing small/newer suppliers. All I am pointing out is that whilst the choice of supplier is of course an individual one, the risks associated with moving to a smaller supplier are misunderstood by many. Many people still believe that if their supplier goes bust they will be left with no supply, and no credit protection. This is why people in the round are reluctant to switch imho.

Interesting err, discussion.

I know you are not disagreeing. I know we have different approaches to energy, probably for personal circumstances.

Just to say, I don't 'have a go' at anyone in particular. Life is too short. I accept everyone has opposing views, although i have to admit, I sometimes don't understand the logic of someone who is clearly educated? After all, you have chosen companies who you clearly haven't been happy with in succession - GBE, Iresa and now Powershop. Why? Purely for the cheaper tariff? Entertainment? :rotfl: I really don't know, but i personally just wouldn't go there in the first place. Anything I say, is purely my (opinionated) view. I play the 'energy game' in a different way to you, but that's not to say either is the right or wrong way.

But - we all have different views and expectations and what would we do without the experiences of our resident guinea pig?

(tongue in cheek, please don't take offence).

I often wonder what you are like in real life, as you are someone I've grown to 'know' and respect as a name on tinternet:)

I couldn't agree more buglawton.

Whilst I admire the efforts of Hengus to put forward a balanced viewpoint either defending, promoting or extolling the virtues of the many choices we now have in the energy sector and kindly highlighting the protections in place, the problem is, the personal experiences given relating to switching to some of these smaller suppliers, has done nothing to alay my general suspicion of some of them and has to be honest, downright put me off.

Personally, I don't want to be switching from one energy supplier to the next, either every few months or every couple of years. Switching 3 times over what period? How much money has been saved? Why would I personally want to suffer the inconvenience of either a company going bust because it simply couldn't take the strain in the market, or hasn't got a clue about how to bill people correctly using correct calorific values, or can't be bothered to answer 'phone calls or emails, or perhaps just doesn't have the staffing back up to deal with customers?

Some would argue, that any saving, even a tenner a year is worth switching for. Well I guess that depends entirely on your circumstances. For me, last year when I switched tariffs with Npower, and believe me, I am a regular tariff switcher with Npower, my record is 3 tariff switches with Npowr in one year, I saved an annual average of £100. I wasn't even on their SVT, I just found out about a cheaper tariff with my own supplier logging into CheapEnergyClub. Npower had made zero effort to inform me themselves and yet the tariff I switched to had been out for around 2 weeks when I contacted them. Clearly making an effort to inform me as an existing customer, perhaps isn't a good business decision. It still didn't put me off from staying with them, I got a cheaper tariff and that is all that matters.

If more households actually made the effort to organise their energy finances, you wouldn't have so many whingers complaining about the overall cost of their energy, and I'm specifically targeting those whose downright apathy leads them to remaining on a suppliers SVT. There's many reasons for such apathy, but mostly it's just entirely related to the 'I can't be bothered attitude'. But if one is going to sustain such apathy, they certainly shouldn't whinge about it!

I'm never saying 'never' to switching to a much smaller independent energy company, but they're going to have to up their game considerably in my view and prove over a number of years that they can weather the storm and give a level of service that I personally find acceptable. In nine months time when my current superb Npower tariff ends, I'll review my options. Any decision I take will be after serious calculated thought, not necessarily driven by the overwhelming urge to save a few quid or try out some rushed in market upstart having paid their £450 licence fee operating out of some high rise in Anytown, perhaps sacrificing a level of stability, longevity and customer service that I currently find on the whole, very good with my current supplier.

I'm one of them, it's like insurance, cheapest quote by a company not heard of - no thanks.