Reports have emerged that energy companies are not allowing customers to get the fairest deals for energy, where the cheapest prices are being unfairly reserved for new customers only. Four of the largest companies have been found to be favoring the deals to win new business with repeat customers not getting a look in and being charged in some cases, hundreds of pounds more.
Chiefly British Gas, E.ON, EDF and SSE have defended their practices and responded saying they react to the demands of the market. British Gas have now acted accordingly and removed the tariff in question. As yet, the other suppliers have yet to respond, whilst the British Gas tariff has now been withdrawn, other suppliers are still restricting their offers to new customers only.
The regulatory body Ofgem has stepped in previously to protect the best interests of consumers to by putting a stop to deals in April 2014 however the Competition and Markets Authority (CMA) made recommendations and Ofgem stated the rules would no longer be enforced.
Ken Geddes, The Chief Executive of one of the largest energy comparison sites in Scotland conducted a secret shopper exercise in which he applied for a tariff with E.ON and then another company. The difference in prices left him, in his own words, “stunned” with the £260 difference, apparently having spent ten years in his job and never witnessing such a differential.
With the negative attention, the pressure is now on for the companies to fall in line and provide fairer pricing for both new and returning customers, particularly with the winter season fast approaching. The more vulnerable members of society such as the elderly may be most at risk of being stung from such pricing strategies and it is the duty of the energy watchdogs to protect such people from seemingly greedy pricing strategies.
With expected winter price hikes expected as always, it is hoped that the regulators can affect much lower prices ahead of the coldest time of year. People throughout the energy and heating industries will welcome fairer pricing strategies right across the board. Ensure that you always have a range of cost effective and top quality plumbing and heating supplies such as brass hosetail and a host of other parts from a leading supplier.