'Simple’ new energy tariffs penalise the old and cold

20 March 2013

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?

TOPICS:   Utilities   Consumer Advice


  • abcde
    Hang on we're told to save energy but are charged more for using the 1st 500 units compared for the next ba-squilion. Hang on since 2011 that changed from 500 to 212 units to pay for the green agenda. If this was anything you would get charged more for the more you used? It never made sense except on poorly written sham consumer sites. Like switching saves you money! No it doesn't as the energy you might have used has to be re-sold (for a profit) on the we've bought it when you were a customer but can now make a profit selling it to the company you've gone too. How I laughed! Now send me the patronising email where by changing my habits like turning the heating on when it's bellow zero costs me money. 5 years ago my DD was £25 now even though I've really used less my DD has gone up last week from £34 to £47. My year on year data tells me I'm using less. Oh I could switch but as I live in rented accommodation the £22 a year I might save (if they don't put their prices up again... not going to happen) is off set v's the £50 leaving fee. Hay ho..... Win win win |o/
  • Han S.
    Is it just me or is that the Queen warming her hands on the fire?
  • Joan R.
    Huge rip off the new system. On the two tier if you did not use energy you did not pay, under the new system if you like me you do not use gas for Eight months of the year I still have to pay around £9.00 per month in standing charges for NOT using gas. Many old people in the summer months will lose out the standing charge can be more than the gas they use.

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