'Simple’ new energy tariffs penalise the old and cold
The much discussed simplification of energy tariffs might end up making things worse for people who use less electricity. Low users, (who are usually pensioners huddled around a one bar fire) might have to pay more.
Ofgem has demanded energy companies abolish the current two-tier system, which charges customers more for the first units of energy they use. It’s a useless system, but low users benefit from it because they don’t pay any fees on top of the fuel they actually use.
However the simpler tariffs, which charge everyone a fixed rate for energy, also include a mandatory standing charge to cover the cost of billing, transportation, and all that gubbins. So while it looks fairer on paper, it also means Mrs Ploppy up the road - who lives on Goblin beef stew cooked on a single Baby Belling ring - will suffer even more.
Let’s have another think about that, eh, energy companies? Go back to the boardroom and discuss it before you change your prices in May? Hello? What do you mean you can’t hear us over the sound of your Easter holiday flight to Mauritius?