Energy rip off,

Kronos · 7 Jul 2015 at 17:30

It’s official: energy companies have taken advantage of loyal customers to the tune of
£1.2 billion.

That’s the damning indictment of a year-long investigation by the Competition and Markets Authority (CMA) announced today
http://www.bbc.co.uk/news/business-33420734

Comes as no surprise to me as I have discovered after British Gas blocked my move to another supplier because they said I owed them money a mere £28,80, but it was enough for them to raise an objection. Turned out not only did I not owe them money but that they owed me some £173 56. Of course it will take some time to reach my bank account according to British Gas but not a word of apology.

Avenged7Fold · 7 Jul 2015 at 17:31

Worst thing is, all the energy companies are just as bad as eachother.

Danthus · 7 Jul 2015 at 17:32

In other news, water is wet.

Von Smallhausen · 7 Jul 2015 at 17:33

Nationalise the power companies, even if for a set time.

wazza300 · 7 Jul 2015 at 17:34

theres no legislation to force them to lower prices

Danthus · 7 Jul 2015 at 17:36

One change I would like to see introduced with immediate effect is a switch to the price being given solely as a price per unit, no standing charges, no x amount for the first x amount of units.

All suppliers offer a price in pence for one unit of gas and electricity.

Uther · 7 Jul 2015 at 17:41

Von Smallhausen said:
Nationalise the power companies, even if for a set time.

Absolutely this. Free market has obviously not worked, re nationalise, help the deficit

Zenduri · 7 Jul 2015 at 17:42

Sigh.. slow news day again?

So the jist of all this is basically, people who don't switch and shop for the best prices get charged more on a standard variable rate and the combined saving these static users could have made is £1.2billion

If you go to the petrol pumps and BP increase their prices to more than Tesco, most people will go to Tesco for their fuel. People just seem to ignore the fact when it comes to energy.

If people want to be able to switch quicker between suppliers then the miles of regulation and red tape needs to go. The whole reason it takes so long to switch is due to the excessive red tape regulations.

Zenduri · 7 Jul 2015 at 17:45

OldCoals said:
One change I would like to see introduced with immediate effect is a switch to the price being given solely as a price per unit, no standing charges, no x amount for the first x amount of units.

All suppliers offer a price in pence for one unit of gas and electricity.

Standing charge is set by the distribution network in your area and has nothing to do with the energy company. It's essentially a charge that's passed on from the Distributor in your area to the energy company, to you.

Also unless I'm way out of whack, as I know more about business energy supply than residential, no supplier uses "x amount for the first x amount of units" anymore?

arknor · 7 Jul 2015 at 17:57

I'm on a prepay meter so always ripped off.

probably a right faff changing on a meter and any other company isn't likely to just remove it even though I have no outstanding debts

The day I moved in the meter was actually on a fairly cheap rate, I informed the electric company I had moved in and the next time I checked the rate had been whacked up about 4p per kwh

rip off kwh and a rip off standing charge.

Unit rate

Normal 14.207p per kWh

Standing charge

26.019p per day

Tariff Comparison Rate (TCR)

17.02 p per kWh

You can use your TCR (Tariff Comparison Rate) as a guide to help you compare your tariff with others, from us or other suppliers. It’s based on how you pay, your standing charge and unit rate. It includes your discounts and VAT at 5%. It’s a guide only as it is based on Ofgem average use figures: electricity 3,200 kWh/year and gas 13,500 kWh/year. Your actual charges will depend on the energy you use

MrMoonX · 7 Jul 2015 at 17:59

arknor said:
I'm on a prepay meter so always ripped off.

probably a right faff changing on a meter and any other company isn't likely to just remove it even though I have no outstanding debts

The day I moved in the meter was actually on a fairly cheap rate, I informed the electric company I had moved in and the next time I checked the rate had been whacked up about 4p per kwh

rip off kwh and a rip off standing charge.

I moved into a house with a prepay, I just called up and it was changed in 10 days, just do that

cainer · 7 Jul 2015 at 18:01

for around 12 years and up untill ~18 months ago i was on the standard variable rate with SSE, changing to EDF on their blue price deal saved me over £300 a year.
its just suckers/CBA people like i was that have made this over payment by not searching the best deal
blame yourself.. i did :/

Zenduri · 7 Jul 2015 at 18:03

arknor said:
I'm on a prepay meter so always ripped off.

probably a right faff changing on a meter and any other company isn't likely to just remove it even though I have no outstanding debts

The day I moved in the meter was actually on a fairly cheap rate, I informed the electric company I had moved in and the next time I checked the rate had been whacked up about 4p per kwh

rip off kwh and a rip off standing charge.

If the property had been vacant for a while the pricing wouldn't have been updated for x amount of time and the first time you enter the key it updates the pricing/settings to the current one.

If there is no debt on the meter related to yourself why the hell haven't you had it changed?

Ring ring...
"Hello energy company i have a prepay meter, i have no debt, can you credit check me and a book a credit meter installation please"
"Do you own the property or is it rented?"
"Own it.....("Ok sir lets do the credit check and book the appointment")"
"Rent it... ("do you have the landlord permission and a contact number for them to confirm its ok to change?") "

As long as you either own it or the landlord isnt an arse 10wd you can have a new credit meter on better rates.

Sorry Arknor but based on the info you've provided you're paying higher rates by your own doing and you will be contributing to the £1.2billion overpaying

spookywillow · 7 Jul 2015 at 18:03

Pre pay meter, Get a statement saying whats been bought on the top up card and actual usage which leaves a balance owing to myself as stated on the bill.....Call up to claim what they owe to be told "you can't be in credit on pre pay meters" and the credit gets wiped.

Scumbags.

Danthus · 7 Jul 2015 at 18:07

cainer said:
for around 12 years and up untill ~18 months ago i was on the standard variable rate with SSE, changing to EDF on their blue price deal saved me over £300 a year.
its just suckers/CBA people like i was that have made this over payment by not searching the best deal
blame yourself.. i did :/

What about the older generations?

It is a doddle for the likes of me to change, i am not so sure it is that easy for everyone.

Zenduri · 7 Jul 2015 at 18:08

My parent finished a 1 year fixed plan and 2 weeks ago when i visited them i sorted their tariff out onto a fixed 2 year that's cheaper than what they were orig on and saving them about £90 a year (not massive users).

The problem is people moan about energy companies and prices but 60-70% of the time problems can be solved and better prices achieved if the people moaning actually HELP THEMSELVES and stop waiting for someone else to do it for them.

cainer · 7 Jul 2015 at 18:08

OldCoals said:
What about the older generations?

It is a doddle for the likes of me to change, i am not so sure it is that easy for everyone.

im 83

Danthus · 7 Jul 2015 at 18:09

HybridX said:
Sigh.. slow news day again?

So the jist of all this is basically, people who don't switch and shop for the best prices get charged more on a standard variable rate and the combined saving these static users could have made is £1.2billion

If you go to the petrol pumps and BP increase their prices to more than Tesco, most people will go to Tesco for their fuel. People just seem to ignore the fact when it comes to energy.

If people want to be able to switch quicker between suppliers then the miles of regulation and red tape needs to go. The whole reason it takes so long to switch is due to the excessive red tape regulations.

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

So it wasn't their fault, the market doesn't work.

do_ron_ron · 7 Jul 2015 at 18:10

OldCoals said:
In other news, water is wet.

+1

What were we told. Nationalisation and market forces will ensure the cheapest price for all.

That's rip off Britain for you folks.

Zenduri · 7 Jul 2015 at 18:10

spookywillow said:
Pre pay meter, Get a statement saying whats been bought on the top up card and actual usage which leaves a balance owing to myself as stated on the bill.....Call up to claim what they owe to be told "you can't be in credit on pre pay meters" and the credit gets wiped.

Scumbags.

The prepayment statements are confusing but this is correct. The credit is representative of whats been paid onto the meter. What it doesnt really show is whats offset against the charges/debt.