How Would This Work

[emmie]

seeing as how many get benefits of one sort or another

http://www.bbc.co.uk/news/business-43022840

[Mamyalynne]

The albeit brief details in the article explain how it is hoped it will work.
If it prevents many from sinking deeper into debt it looks a good thing to me.

[ToraToraTora]

looks like the government are essentially going to force energy suppliers to offer a 2 tier price. In effect it means most of us woulod pay more if they are forces to offer cheap power to those that are deemed to need it.

[Mamyalynne]

//The tariff in question is known as the safeguard tariff cap and was introduced in April last year. It already covers five million people, mainly those on pre-payment meters.//

[Baldric]

It's explained in the link you provided.

[emmie]

perhaps i didn't understand it. So my energy company EDF could offer me a different tariff as i am on disability benefit. So who would make up the shortfall, those not on any benefits?

[Mamyalynne]

More on the Safeguard Tariff here.

https://www.ofgem.gov.uk/about-us/how-we-work/working-consumers/protecting-and-empowering-consumers-vulnerable-situations/consumer-vulnerability-strategy/vulnerable-customer-safeguard-tariff

I am sure the criteria is more than simply being on a benefit.

[Mamyalynne]

Link to a Doc, for this year here.

https://www.ofgem.gov.uk/publications-and-updates/safeguard-tariff-level-1-april-2018-30-september-2018

[emmie]

mamy
thanks

[youngmafbog]

Yes, the shortfall would be made up by those not on benefits.

Yet another reason not to work I suppose, ludicrous idea.

[Mamyalynne]

I think it takes more than simply being out or work to become a 'vulnerable customer' - just maybe it's cheaper in the long run to have this system than the cost of constantly producing demand letters, threats of legal action and disconnection (which often can't be actioned anyway).

Or maybe just let folk freeze? Some already do to a point.

[youngmafbog]

Surely if benefits really are not enough to cover the basics that is what needs addressing?

If that is the case of course.

[Zacs-Master]

That’s exactly what it is adresssing, YMB:
‘Under the plans, customers receiving specific state benefits would be identified and automatically moved to the safeguard tariff’

[sunny-dave]

Essentially (in the complete farce that is 'multiple tariffs for the same stuff'), I am being subsidised by people who don't seek out the best deal.

So that means I pay less (after shopping around) because I am subsidised by the rich, the lazy, the thick, the old and the disabled - who all fall onto the ruinous 'default tariffs' by not actively seeking anything better.

I am perfectly happy to take money from the rich, the lazy and the thick - but unhappy to take it from the old and disabled.

This initiative should help the last two groups move onto a sensible (if not the cheapest) tariff, whilst leaving me to still get a bung from the first three groups.

Seems OK to me.

[Spicerack]

A percentage of our standing charge has always gone towards people who don't pay their bills (or vulnerable customers)
Not saying it's wrong but it works out nicely for the power companies.

[Old_Geezer]

They shouldn't be given private data. Citizens should be able to request personal data being passed to outside organisations. Governments are the custodians of such data not the owners.

[Mamyalynne]

//The Department for Business, Energy and Industrial Strategy (BEIS) said data-sharing would take place under strictly controlled conditions and only with customers' consent.//


Energy companies are saying if anyone does not wish to be placed on the Safeguard Tariff they can request that.

[youngmafbog]

But is not addressing it though is it? Benefits wont increase the Government will effectively just put a tax on the fuel non benefit people use in the form of a higher tariff to support the subsided one.

Very wrong.