Price capping of default tariffs I rather think that the difference between your fixed tariff and the SVT should be more than you say. Money supermarket says: “The average Big 6 standard variable tariff is £1,131 and the cheapest fixed rate tariff is with Green Network Energy at £878 – the difference is £253. According to MoneySuperMarket data, correct as of March 2018.” From this we can see that the cap of around £70 is just a little more than 25% of the difference. A very modest cap I think. Frog in a tree
Price capping of default tariffs Frog, Yes, I agree that a fixed tariff is cheaper but that is why you chose it. It gives you a price for standing charge and a price per unit which works for you. It isn’t really a case of just concluding that the charge will be less than £1276 p.a. (or whatever the figure was). I pay around £900 dual fuel for new build (hence energy efficient) where two people live. This is on a fixed term contract but if it were SVR it would be (maybe) £980 p.a. The cap does not work for me. Now a couple with 4 kids in an energy inefficient home could easily pay more than £1276 () on a fixed term or SVR. If they are on SVR they get help , if on fixed then not. The cap doesn’t seem to work.
Price capping of default tariffs All I can say LRM is when I compare my fixed term tariff it is still massively cheaper than the estimated average of SVR after the cut. I seems clear to me that those on SVR will still be making excessive profits for the big energy companies. Frog in a tree
Price capping of default tariffs frog_in_a_tree: Pretty much this market response is a reflection of the pathetic softness of the cap Frog, what level of cap would be appropriate in your view. As I see it the cap helps the vulnerable and lazy as you point out and I am assuming that you make this distinction because one group deserves help whilst the other does not. In this case would it not be better if the regulator worked out how to identify the vulnerable and directly help them rather than simply set a global tariff and say anything above this is “profiteering”.
Price capping of default tariffs Along with the other energy suppliers, CNA has seen a big increase in its share price, around 5% in this case. Pretty much this market response is a reflection of the pathetic softness of the cap. The average SVT customer stands to save around £70 pa. this is nothing when compared with the savings that can be made by switching to a fixed tariff. Vulnerable (and lazy) customers will continue to be exploited mercilessly. Frog in a tree
Results Hi…I knew that. The transfer takes place tday so I need to take meter readings. I will look Octopus over but will switch if I can find better value. Bulb looks promising. Cheers, Frog in a tree
Results Frog - you will be moving to Octopus, who have also just picked up M&S energy customers. Will their systems and processes cope?
Results paddington - hope is the word indeed – something positive needs to come out of this or it’s going to be a sad loss all around. Games
Results Hi Games. Perhaps you and I are hoping that relative stability will be enhanced by a good sale price for the nuclear interests that are being prepared for disposal from September according to the RNS. PB
Results Speaking as an Iresa customer, we will be dumped on to another supplier with balances protected. I think that Co-operative picked up the customers from the last collapse. If you were an Iresa customer, then you are by definition a switcher after cheaper rates and so British Gas seems an unlikely destination. Cheers, Frog in a tree
Results Frog, maybe they can pick up a few from Iresa who went bust a couple of days ago. Perhaps if all the non producers were to go bust, the energy companies might stand a chance of some profit. Maybe they could start by cutting Conn’s pay packet - or better still remove his job function altogether, it might operate better with out a highly paid CEO? Games
Results From the ii newsfeed: "In the six months to June, Centrica posted earnings before interest, tax, depreciation, and amortisation of GBP1.32 billion, up 7% year-on-year. However, the company’s adjusted operating profit was down year-on-year, by 4% to GBP782 million. Despite this, it held its dividend at 3.6 pence per share for the interim period, and Centrica said it expects its 2018 dividend to remain at 12p, as long as cash flow and net debt targets are met. Centrica said higher commodity prices and good production from the Rough field in the North Sea “largely” offset the fall in profit from its customer-facing divisions. In the Centrica Consumer business, adjusted operating profit fell 20% year-on-year to GBP430 million, with the fall hardest in the UK Home segment. Centrica said in the first quarter of 2018 energy consumption rose due to the harsh winter weather in the UK, but the company was hit by the full period impact of the UK prepayment cap brought in April 2017, lower customer numbers, and higher costs. Centrica Business adjusted operating profit slid 57% year-on-year for the half to GBP96 million." I also heard on the TV news that thay have lost another 100,000 domestic account customers. Frog in a tree
Results [link] Hard to make head nor tale from this lot, but on balance it doesn’t look pretty. The statement that dividend can be maintained at 12p subject to cash flow targets looks ominous. I suspect given that they just missed this lot of cash flow targets, the next lot is highly suspect, especially as Conn seems to say anything to keep his job, however far from the real situation. Oh why do I keep hanging on here? Games
EDF raises prices again Frog “The poorly regulated privatised model has been very bad for consumers.” Yup, THAT is the problem. Sort out the regulation. If it isn’t administered properly, then ANY new buiness coming in, eg Amazon, will get away with whatever it can. “In my view, CNA is not a safe long term investment.” Hmm. At the moment, it doesn’t look too rosy, but who knows? I use First Utility and have found them ok. As you doubtless know, they’re owned by Shell. If the new energy frontier is, eg, solar powered, then maybe a FAANG will invest in the huge solar farms and buy the likes of Centrica as Shell did with First Utility. And similarly improve the service. That may produce a windfall for utility shareholders, but again who knows. New entries are potentially just as bad as the supposed awful big 6, look no further than Extra Energy. The complaints chart for suppliers by size has lines converging; ofgem.gov.uk – 17 Jun 13 Compare supplier performance on complaints See data on energy suppliers' performance in handling consumer complaints. " The cynical exploitation of loyal customers is not a good look." No, it isn’t. But imo the cynical exploitation of customers league has been topped by tech companies. By a country mile.
EDF raises prices again El Kel I agree with much of what you say. Of course there is no reason to believe that the tech giants will be trustworthy custodians of our utilities. Having said that, technology is here to stay and the Big 6 will have to get on board or get taken over. CNA’s current predicament is largely of its own making. The cynical exploitation of loyal customers is not a good look. It prospered for a long while making excessive profits which disincentivised any move to making the business more efficient. The result was inevitable. The poorly regulated privatised model has been very bad for consumers. In my view, CNA is not a safe long term investment. Cheers, Frog in a tree