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.

The Crime of Economy 7

First of all let me make this clear the concept of the Economy 7 domestic electricity tariff is excellent. It is just the execution that is flawed. (Wikipedia description here)

Economy 7 is a scheme dating from the 70's. Basically the consumers electricity is provided on two separate tariffs. The daily tariff is more than the night-time tariff. The night-time tariff is significantly lower than the median price. This is because during the small hours, electricity demand is low.

At night, electricity  generated from base load generation is often barely required and much generation capacity is wound down to minimum (and inefficient) levels.  During these quiet periods, generators sell their electricity at knock down prices. The theory of Economy 7 is that consumers can cash in on these quiet periods by using cheap electricity at unsocial hours.

Initially the driving force was to provide energy for night storage heaters. They  used the surplus night time electricity to provide heat during the day. Often derided, night storage heaters do not really deserve their dreadful press. True, they do have their limitations. But night storage heaters were the first practical example of domestic energy storage - which has yet to be beaten.

The practical problem with Economy 7 is that it impacts on the huge profits made by the utilities selling it. If the electricity at night is sold at half the day time tariff, even after winding their margins up, the utilities still earn less from each KW/hr than they would from a flat tariff. Utilities don't really care if the night-time energy goes to waste. They also know that most Economy 7 customers have night storage heaters and have no choice but to use Economy 7.

To ensure their (guaranteed) profit stays as high as possible, the utilities charge Economy 7 customers double for day time electricity so the 7 hour night period price can be halved. An Economy 7 customer needs to use at least 40% of their electricity during the night period which is 29% of the day. They need to do this just to break even.

If there was any common sense to this we would all be on Economy 7 tariffs, but at fair differentials not ones dictated by greed.

More of us would use washing machines and other heavy load appliances during the slack periods. This would make better use of our available electrical resources. There would be less waste, and actually less wear and tear on the infrastructure of the grid.

But the massive profits of British Gas, RWE nPower and the others would take a (slight) knock. But no government has yet had the guts to suggest the utilities should behave responsibly.

So don't expect ground-breaking Economy 7 deals any-time soon.

Gas Price Cuts: It Must Be Spring!

Billothewisp suspects our great and illustrious masters have much more pressing problems than worrying how much the plebs get ripped off by gas companies. After all winter is now nearly at an end and there is an election in the air.

Funny though it may seem, those wonderfully honest and non exploitative gas companies are all announcing cuts to the price of their gas, just as the daffodils start to poke their little yellow heads up through the frost. (See Here)

What a wonderful surprise for the general riff-raff who have been hammered by massive and unwarranted bills over the last six months.

What a coincidence though that the cheap gas will only come on tap as the temperature rises and the demand goes down. Such a pity for the average peasant who just won't need the gas, just as the price becomes less expensive..

Only a cynic would guess that the closeness of spring and summer could be the driving force for the downturn in the price. Only an even bigger cynic might well suspect the prices will go back up again come October, just as the demand rises.