An Emerging Supermarket Cartel?

Today, the major supermarkets are all "price matching".

They are all deeply concerned about getting a good deal for us. They apparently want to ensure that down trodden grubby little Englanders like you and me can stretch their pennies as far as possible.

Yea right.

Look at this from a different angle.

Company X states that it will price match anything from Companies W,Y and Z. For the consumer this propaganda reads as "Shop with us, we are the nice guys at company X - if our prices are higher than elsewhere we'll take a hit and match prices.

Hmmmm... nice guys eh?

Now look at the hidden corporate Company to Company sub-text

"If you undercut us we will reduce our price to match yours.  It does not matter how you have reduced your price, we will match it. Even if it means we sell at a loss. Remember we are a huge company. Cause us too much pain and we will cause you an enormous amount of damage. But only if you try to out-compete us. Follow our pricing and keep within an acceptable limit then we can maintain an air of competition. We can all clean up.

But, if you want a price war we will will give you a war.

Who wants a war? Especially when it could cut profits.

Instead in practice we get this.

Company X tweaks a product price upwards slightly. So initially, they are more expensive than their peer group. When challenged, they price match. Consumers are conned into thinking this is because company X is being "competitive". Then the other companies, one by one, follow suite and up their price. We end up with a transparent price hike for no reason other than company X wants to increase it's profit margin.

Then it can all start again.

This scenario is an open cartel. Normally cartels are closed conspiracies. (i.e. companies secretly conspire to fix prices). In the above context the conspiracy is all done by innuendo and propaganda. But it is still a cartel.

Happy shopping - and watch out for those "good deals".

(apologies for the long absense - I have been otherwise engaged.)

Love & Kisses
Billothewisp

Time to Break the Energy Cartels

Go onto any price comparison site. Select one of the big utility companies. Have a look at how many different tariffs there are.

Here is the result of one quick scan I did for electricity tariffs. It includes dual fuel, but only on a variable direct debit.

• NPower have 29 different tariffs
• British Gas have 58 tariffs
• Scottish Power 15 tariffs
• EON have 10 tariffs
• OVO 54 tariffs

Don't forget this is only variable direct debit. God knows how long the full list of tariffs is.

This is not done for "customer choice" this is done to obfuscate and confuse. It is a deliberate policy of making things difficult to understand so as to undermine the customers visibility of what they are really paying.

But even forgetting about the massive casquade of apparently different though essentially identical tariffs,  there are even worse liberties taken with consumers.

Take some elderly relatives of mine.

They are hardly infirm and are still very much in command of their faculties.

But they don't get on with the internet and they come from a period of time when Utility Companies were trusted and held in high regard. A bit like the banks (need I say more?)

Needless to say, these fine people are inevitably on a high tariff.

Nobody at Npower has told them that they could save £150 simply by changing their current tariff for another virtually identical one.

But it gets worse.

Npower have recently increased their monthly direct debit.

They have done this even though NPower currently owe them £400.

Thats is a continual and increasing overcharge worth currently over half their annual bill.

A free loan from the old to the averacious bastards at another greedy energy utility.

This is shameful. Dare I say for any normal business it would also be regarded as immoral. An deplorable activity bordering on criminality.

Energy Utilities are given a virtual profit guarantee and an easy market.

I don't think that it is too much to ask for them to behave in a moral and decent manner.

Until this scandal is addressed, more and more people are going to be forced into energy poverty. More and more of the old and vulnerable will die for the lack of a little heat.

Just so the utilies can continue amassing their huge immoral fortunes.

This has got to stop.

But is there anyone in government with the balls to address the problem?
I have my doubts.