Energy customers 'paying too much'

[spring hall convert]

http://www.bbc.co.uk/news/business-33420734

"Millions of energy customers have been "paying too much for their energy bills", a year-long investigation by the Competition and Markets Authority (CMA) has found.
Between 2009 and 2013, British Gas, E-On, Npower, EDF Energy, Scottish Power and SSE collectively charged households £1.2bn a year more than they would have in a competitive market, the CMA said."

It's pretty damning that the CMA says that this isn't a competitive marketplace. The industry will be saying people should switch, I say life is really too short to have to worry about the price you are paying to stay warm every 6 months.

I frankly find it laughable that we expect any different. These companies sole ambition is to make money for their shareholders. If that involves ripping off the vulnerable and elderly, so be it.

 

[glasfryn]

http://www.bbc.co.uk/news/business-33420734

"Millions of energy customers have been "paying too much for their energy bills", a year-long investigation by the Competition and Markets Authority (CMA) has found.
Between 2009 and 2013, British Gas, E-On, Npower, EDF Energy, Scottish Power and SSE collectively charged households £1.2bn a year more than they would have in a competitive market, the CMA said."

It's pretty damning that the CMA says that this isn't a competitive marketplace. The industry will be saying people should switch, I say life is really too short to have to worry about the price you are paying to stay warm every 6 months.

I frankly find it laughable that we expect any different. These companies sole ambition is to make money for their shareholders. If that involves ripping off the vulnerable and elderly, so be it.

agree wholeheartedly and comes as no surprise

 

[beorhthelm]

with the meddling of the the energy regulator and government, its difficult to understand where this comes from, too easy to say "its the energy companies" without looking at the whole bill. are energy prices are well below the average for europe. is this conclusion drawn from people not having switched to the cheapest possible?

 

[The Andy Naylor Fan Club]

http://www.bbc.co.uk/news/business-33420734

"Millions of energy customers have been "paying too much for their energy bills", a year-long investigation by the Competition and Markets Authority (CMA) has found.
Between 2009 and 2013, British Gas, E-On, Npower, EDF Energy, Scottish Power and SSE collectively charged households £1.2bn a year more than they would have in a competitive market, the CMA said."

 

[carlzeiss]

Switched from Scottish Power to OVO 1 year year ago and couldn't be happier . Monthly Standing orders are down by 30% and their customer service is the best by far from any utility company I have dealt with . On top of that accessing my account info and uploading readings through the OVO website is a breeze .

 

[spring hall convert]

is this conclusion drawn from people not having switched to the cheapest possible?

It's not acceptable to blame the consumer. This is a market that has deliberately convoluted itself in order that people give up trying to understand it. It's not the only one.

Isn't it a sign of a failed market where people are paying over the odds for the same product? You wouldn't go into a shop and buy a can of Heinz Beans for a pound, when there's one for sale for 50p.

 

[beorhthelm]

It's not acceptable to blame the consumer.

i didnt. the pricing is terribly convoluted, if this is leading to people not realising they are charged more than elsewhere, then address that. talk of a price cap isn't the answer if that leads to no competition, or doesnt address complex pricing. my point is (and need to read the original report to find out) what is the definition of "too much" and what is the bench mark for that qualification? is this compared across the UK market or comparison with european? is this accounting for margin over wholesale prices? is it discounting taxes and subsidies?

and people do routinely pay over the odds for the same product, for convenience. that's not a failed market necessarily, it could be the pricing of that convenience.

 

[seagullsovergrimsby]

It's not acceptable to blame the consumer. This is a market that has deliberately convoluted itself in order that people give up trying to understand it. It's not the only one.

Even though the Big 6 and other suppliers have now been forced into only having 4 tariffs available to choose from they know that only a certain percentage of customers will switch suppliers on a regular/annual basis. They rely on customers gullibility to keep on paying the highest tariff because it maximises profits for the company and keeps the shareholders happy with their dividends. For years now it has been a case of screwing the customers.

 

[spring hall convert]

and people do routinely pay over the odds for the same product, for convenience. that's not a failed market necessarily, it could be the pricing of that convenience.

Which is where the bean analogy breaks down, I concede. It's not comparing apples with apples. The inconvenience here amounts to 5 minutes on the net every 6 months - seems a small price to pay for £250 a year but why are people put in that position? It's not right.

 

[Gazwag]

Bunch of all of them, Mum and Dad were silly and switched three months ago, first bill they got from the new supplier was £4,000, since then it has gone up to £8,000 - current situation "It should be sorted in the next two weeks"

 

[KZNSeagull]

Whilst flawed, I would rather have the competition in the UK than the nationalised shite we have to put up with here.

 

[Machiavelli]

http://www.bbc.co.uk/news/business-33420734

"Millions of energy customers have been "paying too much for their energy bills", a year-long investigation by the Competition and Markets Authority (CMA) has found.
Between 2009 and 2013, British Gas, E-On, Npower, EDF Energy, Scottish Power and SSE collectively charged households £1.2bn a year more than they would have in a competitive market, the CMA said."

It's pretty damning that the CMA says that this isn't a competitive marketplace. The industry will be saying people should switch, I say life is really too short to have to worry about the price you are paying to stay warm every 6 months.

I frankly find it laughable that we expect any different. These companies sole ambition is to make money for their shareholders. If that involves ripping off the vulnerable and elderly, so be it.

This is all part of the ideology of choice, which involves the rational-calculating individual embracing this ideology and giving themselves a pat on the back for making the best choice, and reassessing that choice at regular intervals. It's a supply of gas and/or electricity. That is all. Why do we need choice here? Why do we need to waste our lives with the convoluted offers provided by the oligopolies -- that hone in on privatised utility sectors, and do very nicely as a result.

 

[spring hall convert]

It's a supply of gas and/or electricity. That is all. Why do we need choice here?

Exactly my point.

It's interesting when you compare it to supermarkets, where retailers who carry limited product ranges at excellent prices are very much in vogue at present (Lidl, Aldi.)

 

[desprateseagull]

Will customers get a rebate..?



The NBC probably stands for.. NO B****** CHANCE!

 

[beorhthelm]

... It's a supply of gas and/or electricity. That is all. Why do we need choice here? Why do we need to waste our lives with the convoluted offers provided by the oligopolies -- that hone in on privatised utility sectors, and do very nicely as a result.

so would you like to not have any choice? to have prices fixed across all suppliers?

and while the power companies do very nicely indeed, we in the UK have some of the lowest energy prices, even after tax and levies imposed. suggest something seems to be working.

 

[spring hall convert]

so would you like to not have any choice?

It's not a choice, it's a boring, onerous, overly complicated chore that amounts to a laziness/ stupidity tax.

 

[Machiavelli]

so would you like to not have any choice? to have prices fixed across all suppliers?

and while the power companies do very nicely indeed, we in the UK have some of the lowest energy prices, even after tax and levies imposed. suggest something seems to be working.

We live in a world of proliferating and meaningless choices (see energy supply, for instance) which claims at the more fundamental level that 'There is no Alternative' (i.e. there is no choice). So, I want political choice (being a democrat and all that) but not an ever-growing list of choices where it doesn't matter.

 

[fat old seagull]

i didnt. the pricing is terribly convoluted, if this is leading to people not realising they are charged more than elsewhere, then address that.talk of a price cap isn't the answer if that leads to no competition, or doesnt address complex pricing. my point is (and need to read the original report to find out) what is the definition of "too much" and what is the bench mark for that qualification? is this compared across the UK market or comparison with european? is this accounting for margin over wholesale prices? is it discounting taxes and subsidies?

and people do routinely pay over the odds for the same product, for convenience. that's not a failed market necessarily, it could be the pricing of that convenience.

Whilst it might not be to difficult for Mr Average to 'address that', perhaps (and I believe that is what the review is about) there are hundreds of thousands out there, not just the very elderly, that are completely in the hands of their suppliers and the various and complicated tariffs they use. So look at the whole picture and not just judge by your own capabilities.

 

[spring hall convert]

So, I want political choice (being a democrat and all that) but not an ever-growing list of choices where it doesn't matter.

Quite. We've all the choice in the world where it doesn't matter and very little where it does.

 

[KZNSeagull]

Quite. We've all the choice in the world where it doesn't matter and very little where it does.

But it does matter - you just don't notice it any more. Go back to one supplier and you soon will.