How to fix energy price tariffs
The big six energy companies hide their charges by bamboozling customers with various tariffs and offers. When you are brave enough to switch you end up paying through the nose to another supplier.
Falling wholesale prices for energy are not passed onto the consumer. The mouthpiece from Energy UK has said that the reason for the slow fall in household bills is ‘because energy companies buy ahead to fix prices and to plan … the gas and electricity we are using today has already been paid for.’
Erm! Why do household energy bills instantly rocket upwards by the maximum amount when the price of a barrel of oil increases?
Ofgem and the Energy and Climate Change (ECC) parliamentary select committee have struggled trying to understand why the consumer is being fleeced.
I felt a cold shiver go down my spine after listening to the excuses and reasons the big six underlings gave to the committee justifying the inflation busting price increases they have imposed over recent years.
The most cringe worthy moment was the concern they had for the poor who had a choice of heat or eat this coming winter. I was waiting to hear one of them say people should turn their fridge freezers off this coming winter and save money on their bills by storing their frozen food in the living room.
Here’s an idea Ed Davey and ofgem – Create a new way for the energy companies to inform the consumer about their charges. Have a one yearly fixed unit cost (kWh) price for gas or electricity.
So for example if one energy company offers an all inclusive unit cost of of 18p (kWh) including the green charges, VAT, bosses bonuses, connection and transmission charges, new power station costs, insulate a poor person with a furry onesie etc. ‘Tut! Silly me, I almost forgot to include the electricity or gas!’
Then another energy company offers a unit cost of 14p (kWh) then the option for the consumer to switch with confidence for a year is in their own power.
A consumer not possessing a degree in quantum mathematics could then review their average monthly or yearly unit consumption by just getting a calculator out and for example multiply an average yearly 3,300 kWh usage multiplied by 18p this would be £594.00p. The other example if I am not mistaken is £462.00p.
Ironically this idea could be termed as transparent and would introduce true competition into the energy market! Alas! I fear it is doomed to failure.
Has the regulator managed to see through the smoke and mirrors and fight for a better deal for the consumer? Break up the cosy cabal that the big six claim is a competitive market.
“In a previous life I was cooked tomatoes on a slice of regressed haunted toast. I know this because during a power cut I was resurrected as tomato on bread.”
Is your energy price a fix?