taxman Posted October 19, 2012 Share Posted October 19, 2012 How do you know? What would the price of electricity and gas be if it had never been privatised? Do you think there is keen pricing between the big 6 energy providers? True competition where each business attempts to get more customers by cutting prices and improving service? Link to comment Share on other sites More sharing options...
Mecky Posted October 19, 2012 Share Posted October 19, 2012 How do you know? What would the price of electricity and gas be if it had never been privatised? Bingo!! My post No 22 Link to comment Share on other sites More sharing options...
frededwards Posted October 19, 2012 Share Posted October 19, 2012 Don't bother, he/she is just being deliberately argumentative. Link to comment Share on other sites More sharing options...
nightrider Posted October 19, 2012 Share Posted October 19, 2012 So what's your bright idea then? Its understood that there are approx 400 different tarrifs between the big 6 suppliers. All those slick salesmen and saleswomen get you on the phone talk nonsense to you and persuade you onto whatever tarrif suits them, card payment, token payment, standard, peak, off peak, night storage, duel fuel discount, direct debit discount, pre-payment discount, commercial users, student house..... Cut the crap and enforce the companies to offer the lowest rate by default. I think its a perfectly sensible proposal. (lets not forget thats all it is at this stage) What is so wrong with that? because given their past behaviour one quite likely outcome is the cheapest tariff will become far more expensive to compensate, so it may in fact be ill thought out (and now as it turns out is not the party's policy because David C was confused?!) Link to comment Share on other sites More sharing options...
ECCOnoob Posted October 19, 2012 Share Posted October 19, 2012 Well according to 'Dave'....It's a bit more than an idea! http://www.bbc.co.uk/news/uk-19986929 The exact details of how this will be achieved, in next month's Energy Bill, have yet to be decided. My point stands. Link to comment Share on other sites More sharing options...
maxmaximus Posted October 19, 2012 Share Posted October 19, 2012 Do you think there is keen pricing between the big 6 energy providers? True competition where each business attempts to get more customers by cutting prices and improving service? Have no idea, hence the question, which no one seems able to answer, so it would appear they don’t know if the price would be lower or higher either. Link to comment Share on other sites More sharing options...
andygardener Posted October 19, 2012 Share Posted October 19, 2012 Have no idea, hence the question, which no one seems able to answer, so it would appear they don’t know if the price would be lower or higher either. Complex question, the short answer is yes it likely would be lower. Energy companies are both producers and billing companies. The producer arm has to operate commercially so can't sell to their billing company at a preferential rate. The billing arm can vary prices, as they do, between regions so in any given region one or other of the big billing arms is cheapest, allowing them to offset customer desertions in regions where they are more expensive. Net result, constant churn of customers, with a huge expense in sales and marketing, which we have to pay for in increased bills. I'm all for free market enterprise, however there have to be exceptions...this is clearly one area in which privatisation has just added a load of overhead to the final bill rather than encourage genuine competition. Link to comment Share on other sites More sharing options...
SevenRivers Posted October 19, 2012 Share Posted October 19, 2012 The government in something of a surprise announcement (by Mr C) indicated that they will legislate to force energy companies to give customers the lowest price tariff. Pardon me if I'm missing something, but does that not mean there will only be one tarrif for each company. Who in their right mind would choose to pay a more expensive tariff? http://www.independent.co.uk/news/uk/politics/confusion-grows-over-fuel-bill-law-8216053.html Some people opt for a more expensive green energy tariff (which is folly anyway, if you read the small print, it never promises to increase the sourcing from renewables proportional the number of people buying the green tariff, just that they will "off-set" by planting a few trees etc). Link to comment Share on other sites More sharing options...
L00b Posted October 20, 2012 Share Posted October 20, 2012 Complex question, the short answer is yes it likely would be lower. Energy companies are both producers and billing companies. The producer arm has to operate commercially so can't sell to their billing company at a preferential rate. The billing arm can vary prices, as they do, between regions so in any given region one or other of the big billing arms is cheapest, allowing them to offset customer desertions in regions where they are more expensive. Net result, constant churn of customers, with a huge expense in sales and marketing, which we have to pay for in increased bills. I'm all for free market enterprise, however there have to be exceptions...this is clearly one area in which privatisation has just added a load of overhead to the final bill rather than encourage genuine competition. Neatly summed up. The insurance market has the exact same problem (marketing o/head, especially stipend to comparison websites etc. - IMHO higher aggregate, than costs associated with 'net loss' events where one party is uninsured) and I've been advocating for its regulation for aeons now. Link to comment Share on other sites More sharing options...
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