Thursday, 18 October 2012

You Won't Read This Dave Because I'm Not A Professional Lobbyist

But I know how to help people get the cheapest tariffs on their energy bills.

Every year, say 1 June, the utiliy bill contains a box with the kilowatt hours of gas and electricity used over the past twelve months. Based on this and the postcode, the next line will give the cheapest appropriate tariff of any energy supplier together with a website address or a phone number. It will be up to the consumer to switch.

Saying that everyone will be on the cheapest tariff simply means there will only be one tariff and that tariff will probably be the expensive standard tariff,. Tariffs are different because it costs different amounts to supply energy depending on volume supplied or the method of payment to name only two factors. Put simply, dual fuel direct debit medium to large consumers fixed duration in cities are the cheapest to supply hence their unit prices are the lowest. People who don't use much energy or want to pay in cash/cheque in arrears or by meter are more expensive to service because the costs of supply equipment are spread out over a smaller amount of product and because the cost of collecting payment is higher. But if we all have to pay the same then the prime customers will be forced to unfairly subsidise the sub-prime just like women will pay more for car insurance and men more for  life insurance or annuities.

No comments: