Letter: Range of energy tariffs proving so confusing
Tuesday 1st November 2011, 8:37AM GMT.
It is no use Mr Huhne saying it should be easier for people to find different tariffs for energy.
There should be a single tariff for everybody, not a maze of deliberately confusing prices nobody can understand.
The suspicion exists that there is a cartel on energy prices, but the government should forget the green agenda, that threatens to bankrupt the United Kingdom, and instead burn coal.
Many experts now say that a rise in CO2 levels would actually benefit the world, by increased crop yields (Sunday Times, October 16 report) and a warmer climate in the winter.
W F Kerswell
Picklescott
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The method of expressing potential savings as “£y per year” or supply price as “typically, £x per year” based on an average household is pure marketing ploy to mislead. “Average household”? Who is an average household? These statements are pure efforts to confuse people. They should simply quote their price per Kw of energy and the standing charge per day and be done with it. When I ask this question of thiose who call offering alternative supply, they insist on trying to change the sales pitch back to a fantasy figure based on an average household.
Being told that your payments on direct debit will be “£ per month” is again misleading – they will calculate actual use at end of 12 months or even earlier and adjust accordingly – usually upwards.
And while they’re at it, they should ban the ubiquitous “standing charge” which has gradually been reintroduced after its widespread demise up to a few years ago. It means that the energy companies grab from you even if you’re using zero energy.
They say that it covers maintenance of the system, but on my gas bill, they also charge a “transportation charge” which my supplier told me goes to the owner of the network for delivery and maintenance charges.
The supply company that I am with have no tariffs at all without a standing charge and as I now use so little electricity, (70p per day), the standing charge (additional 17p) works out as an extra 24% “surcharge” on my bill. It’s worse with gas, where the charge adds on a couple of £ each and every week.
As some respondants will no doubt say that that is the price of energy nowadays because it’s getting scarcer, let me pre-empt them and say that it’s not, it’s a gratuitous charge which bears no relationship to anything, especially as it varies across tariffs. I note that the “capped rates” to 2014 have a far higher standing charge than the standard tariff. Giving something with one hand and taking more back with the other?
If you’re on a capped tariff, please check standing charge rates against standard tariffs. You may be shocked to see what you actually are paying. It’s actually cheaper for me to be on standard tariff than a capped rate from my supplier and being so allows me flexibility to move should the government and OFGEM finally get their act together and bring the energy companies to heel.
Even if you do your best to save energy, they still bring out the shears to fleece you. Where’s my reward for being environmentally aware?
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I just love the way ofgem, offwat etc work. they take an eternty to actual come up with something that the public have known for years. Fine the company, and all the fine money then goes straight back to the goverment and so on. How about dishing the fine money out to the public being ripped off, then they will be doing a service.
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What experts said that?
You obviously have little understanding of how global warming and the greenhouse effect actually work.
“Warmer climate”? Warming is not significant in terms of daily temperature, but has a greater effect in the polars. And even if it was significant, crops require sunlight to grow, not heat.
Yes, bills are high. Because the oil sellers are charging what they want and we bow down before them, while the energy companies choose to improve their margins. Nationalise it.
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