Another Brilliant Move

[KARL]

A while back we (my household) ended up unavoidably paying more for a utility because the Ombudsman ruled that an "improvement" to the regime should be introduced. All suppliers were forced to make the change and there was no escape. From memory this was to do with fixed telephone services and/or internet - I just remember being astonished that the institution supposedly tasked to protect consumers forced an increase in costs.

Now we have been told that the zero standing charge tariff we are on for gas is to be abolished and a quick check around other suppliers reveals they are all dropping zero standing charge tariffs. The impression I am being given is that Ofgem (i.e. the government) has dictated a change which forces the different suppliers to drop zero standing rate tariffs. We use no gas but want to have the option and now we will be forced from paying nothing to paying for every day.

I always thought that ombudsmen and such were intended to hold back increases in costs, not give them a boost - I guess I am not in tune with reality in the UK. This development clearly also reduces consumers' choice, another surprise to me.

[Buenchico]

Ofgem's ruling was actually that energy suppliers were obliged to drastically reduce the number of different tariffs they offered, with the 'zero standing charge' ones often being the first to go.

This was first discussed here 5 years ago
https://www.theanswerbank.co.uk/Business-and-Finance/Personal-Finance/Question1288895.html
(where I mentioned that my own gas bill had risen from about £30 a year to around £100 a year because of the changes)

You were moaning about it 3 years ago
https://www.theanswerbank.co.uk/Home-and-Garden/Question1419472.html

. . . and again last year
https://www.theanswerbank.co.uk/Home-and-Garden/Question1566532.html

[ladybirder]

Karl last week I signed up for a Fixed Term deal into 2020 with Ebico with zero daily standing charges.

[-Talbot-]

You were moaning about it 3 years ago




That's ruined blaming it on Brexit.

[KARL]

Thank you Chris for reminding me - what a moan, eh ? Seriously though, if "improvements" instigated by the government make matters worse for people then that is pretty difficult to accept, is it not ? Is it really impossible for these people to introduce a string of changes in something like this without including a downside ?

[fiction-factory]

The idea is to reduce the number of tariffs. There were far too many and suppliers were deliberately making it too complicated, so the regulator. There is a case for saying the regulator should keep out and just leave it to the market but the problem (not to me) is that about 30% of us are savvy in this area and the other 70% are so baffled by it they end up not switching or taking any notice of Martin lewis and just stick with the most expensive deals

[KARL]

Ladybirder, we just received a message from Ebico today saying the zero daily charge tariff is going to disappear. I plan to check out the possibility that this applies only to us. Our contract does not have an end date. As I mentioned, other suppliers have been dropping their zero daily charge tariffs just lately.

Talbot, are you not being a bit touchy - or is this how your sense of humour reacts ?

[ladybirder]

Looks like I just got mine in time then Karl. You say "Is going to disappear". Will you have time to sign up before it disappears?

[fiction-factory]

>I plan to check out the possibility that this applies only to us.

I'm pretty certain it will apply to other Ebico( never heard of them) customers) too.

Comparison sites will help you out here. I assume you are a low user of energy if you like zero standing charge. Put in your consumption and it should help you find the best deal

[KARL]

Ladybirder, watch this space - I will update after talking to Ebico tomorrow.

[ladybirder]

Yes, do let us know. Good luck.

[KARL]

Well, well. It turns out we were on Zero Variable and they are continuing a Zero but it is a Zero Fixed. However, it is a fixed rate for consumption for only one year so, ladybirder, you seem to have struck lucky either by beating some deadline or simply been given privileged treatment. We will now be on this tariff for the coming year and no doubt then we will have to go through the hoops again. This now looks most likely to be something that will cause some to accept paying, either through inertia/inactivity (not looking into things just accepting what is dished out) or by actual design (supplier sets a trap - the very thing so often complained about).

[ladybirder]

Karl I have just checked and from early November I will be on the Zero Fixed Rate Green tariff and it is for a year only. Probably the same as you are getting. I thought it was until January 2020 but that must have been another one I was considering, so sorry if I misled you. Most tariffs are for one year so no big deal. I did look for a two year fixed with zero daily rate but couldn't find one. Which don't recommend taking a Fixed longer than a year as rates may go down - that made me laugh;-)

[KARL]

Mystery solved - we'll both have to go through the "process" in a year's time but, at least for me, if it is still no standing charge but a change in rates for consumption (yes, surely up) then maybe there will be little or nothing to do as the zero rate is what matters. We literally use no gas but want to keep the meter in place so we would just roll on to the next contract/year - hopefully a "do nothing" scenario.

[ladybirder]

Karl "do nothing" means you are automatically put onto your supplier's Standard Variable Rate which will be higher than what you currently have and will certainly have a DSC. But you will probably be offered another year's fixed deal which will be better than the SVR. Whatever you do, don't do nothing.

[KARL]

I meant I hope we will receive a message saying "Here is the updated version, if you are OK with it you don't have to do anything because you'll be put on it" - but maybe I am assuming the famed common sense and maybe that would be too easy. We'll wait and see.