Another UK plc disgrace....
Discussion
http://www.bbc.co.uk/news/health-12420077
From article..
"Domestic fuel costs have risen sharply in recent years, but Prof Ashton says the problem is compounded by the two-tier tariff used by most energy companies, with a high initial unit cost which falls when more energy is used.
"We spend a lot of effort trying to prevent premature deaths at all ages but particularly in the elderly.
"This is something that we ought to be able to do quite simply, and one of the things is addressing this iniquitous pricing structure."
The lethal impact of the recent cold snap is already emerging in death figures. In Cumbria there were nearly 200 extra deaths in just over a month over Christmas and the New Year."
&
"...was surprised to discover that as a low energy user, a lot of her consumption is charged at the higher tariff."
Disgusting and environmentally unethical tariff practices by the utility companies.
From article..
"Domestic fuel costs have risen sharply in recent years, but Prof Ashton says the problem is compounded by the two-tier tariff used by most energy companies, with a high initial unit cost which falls when more energy is used.
"We spend a lot of effort trying to prevent premature deaths at all ages but particularly in the elderly.
"This is something that we ought to be able to do quite simply, and one of the things is addressing this iniquitous pricing structure."
The lethal impact of the recent cold snap is already emerging in death figures. In Cumbria there were nearly 200 extra deaths in just over a month over Christmas and the New Year."
&
"...was surprised to discover that as a low energy user, a lot of her consumption is charged at the higher tariff."
Disgusting and environmentally unethical tariff practices by the utility companies.
phil-sti said:
why can't it just be one price?
It has to be confusing otherwise all consumers would simply switch to the cheapest provider instead of the current system of switching to what they think is the lowest provider. It's the same model as mobile tariffs. If you can keep it convoluted then you can sell a more expensive product.It's one of the by-products of a competitive market place.
The simplest thing a regulator could do would be to ban all non fixed unit price tariffs but then they would have to deal with the cartel that would form, either deliberately or accidentally.
DonkeyApple said:
It has to be confusing otherwise all consumers would simply switch to the cheapest provider instead of the current system of switching to what they think is the lowest provider. It's the same model as mobile tariffs. If you can keep it convoluted then you can sell a more expensive product.
It's one of the by-products of a competitive market place.
The simplest thing a regulator could do would be to ban all non fixed unit price tariffs but then they would have to deal with the cartel that would form, either deliberately or accidentally.
I absolutely agree with you. What's pitiful is that energy and mobiles are both industries with big, expensive and utterly ineffective regulators.It's one of the by-products of a competitive market place.
The simplest thing a regulator could do would be to ban all non fixed unit price tariffs but then they would have to deal with the cartel that would form, either deliberately or accidentally.
Now where have we seen a big, expensive and utterly useless regulator before? Seems to go with the territory.
Ozzie Osmond said:
I absolutely agree with you. What's pitiful is that energy and mobiles are both industries with big, expensive and utterly ineffective regulators.
Now where have we seen a big, expensive and utterly useless regulator before? Seems to go with the territory.
Regulators answer to Govt and recieve their powers from Govt.Now where have we seen a big, expensive and utterly useless regulator before? Seems to go with the territory.
Govt does not want to give the regulators too much power as they rely on the tax reciepts from the companies being regulated. The more lax the regulation the more players in the market and the more all players can charge and the more creative they can be and so the greater the tax reciepts.
Govts have to trade off the level of regulation versus the income from the particular industry. The more money a Govt requires the greater the incentive for it to be lax or even relax regulation.
As you say, we have just seen first hand what happens when a Govt de-regulates a market too far or fails to actually regulate in the first place.
However, we have also seen that we are now in a situation where we require as much revenue as possible.
ofcorsa said:
These higher low volume unit costs were introduced as a response to standing charges being dropped I believe?
Correct, some tariffs have standing charges, some don't. Those that don't have a standing charge have this high initial price followed by a reduced rate. It amounts to the same thing in terms of what you pay. That these so called consumer experts don't understand that speaks volumes.Its just the energy companies (exactly like the telcos & mobile operators) making it as diffficult as possible for customers to make direct pricing comparisons.
Its really boring, but just a product of smart-Alec marketing/pricing/product managers doing what they do best.
Its symptomatic of much that goes on in lots of businesses - a huge amount of time & effort goes into disguising pricing and trying to hide profitability.
herewego said:
I'd like to see the tariffs turned upside down. A low starting tariff, increasing with consumption.
Would make sense, and tie in with the govt's aim of us being more efficient.What people pay to heat their home with fuel oil is remarkable compared to gas and electricity.
What a pity we aren't more like the Egyptians.Lets all get out there and basically say we have had enough of being shafted from every direction possible.Its getting to a point where you may as well give your salary to the Gov and ask them to give you back what they can afford to because the way taxation is going directly and indirectly their will be little left to spend on anything but food.
Ozzie Osmond said:
But aren't we going to make a huge profit from nationalisation of Lloyds, RBS etc????????
It's looking better now Merlin is out and is toothless. The problem is that the more the state controlled banks are punished the weaker and less valuable they become.
As ugly as it is the smartest thing to do is to build them up as quickly as possible, get as much revenue as possible and sell them off to the highest bidder in the best package.
Once they are off our books then tax the s
t out of them. But hitting something we own is just moronic. I'd we were smart we'd be bogging them up so as to sell them for the largest amount and then hit them for even more money, especially if we sell the holdings overseas which is the most likely scenario.
Sadly, we are so bitter and thick as a race we are s
tting on our own doorstep knowing it's knocking the resale value hard. DonkeyApple said:
Anything nationalised is by nature of apalling management, non profit. In fact most stick prices through the roof and post massive losses.
I'm sure some nationalised companies will make losses, I'm sure some won't. Personally as part of UK PLC I would want our nation to subsidize heating/power for our people, it's not what I would have in a perfect world and I don't see it happening, but I would prefer it what we have now
The French have an 85% Nationalised company that makes €3.905 billion profit. It does not surprise me
http://en.wikipedia.org/wiki/Privatization#Opposin...
http://www.guardian.co.uk/business/2010/feb/03/ofg...
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