Energy companies told to play fair

GlasgowGirl

Facilitator
Jul 22, 2008
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The BBC reports that Ofgen has told energy companies to stop charging customers different rates depending on whether they pay by direct debit or pre-pay meter.

The average annual bill for households on pre-payment meters was £118 higher than those who pay by direct debit following the latest round of price increases. Those who pay by cash or cheque each quarter pay about £80 a year more than those on direct debit.

I can see the sense in charging customers who pay by direct debit a little bit less, since this presumably saves companies money. But these disparities do seem very high, don't they?
 

Jorumian

Facilitator
Sep 1, 2008
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Birkenhead
Energy companies, like petrol companies, are major constituent parts of the problems I believe we face at the moment. We are constantly being told the cost of oil and natural gas has increased and so they "must pass the price hike on". And yet these companies are posting obscene profit margins, which the government is refusing to do anything about. Incidentally the cost of petrol fell markedly per barrel recently, I can't remember the cost of petrol or diesel falling by the same rate. Why are only the increases in price passed on to us, but the decreases conveniently forgotten?

This can only mean that we are all being vastly over-charged for our oil, electricity and gas.

It seems to me that the difference between paying by direct debit, over the counter or indeed by payment card is just another way for these companies to fleece the consumer.

Although perhaps it is a little naive to assume the government would do anything about this, given their vast tax levy on petrol, not to mention the VAT on fuel, and the fact that the Prime Ministers brother is a high ranking official in the auspices of one energy company, Eon I think.

It is time for Ofgen, Ofwat, Ofsted, Of Mice and Men, whoever, to have some real power to deal with these companies, and not be some fuzzy governmental Quango that is simply a facade to con the public into believing that things "are being monitored so that it is all fair and above board". It isn't and it is getting worse by the day.