Currently all the 15 million users on standard variable rate are temporarily being subsidised, after 15+ years of providing the subsidies to all the switchers. When the price cap is increased these 15 million users are each going to be shafted for about £85 to pay for all the 'lost' credit that the switchers had with their failed suppliers, and that on top of a big increase in the SVR as well.
Even though this is state aid and not allowed by the EU ?.
Incorrect, for 15 years the companies providing lower costs were making profits. The people on alternative standard variable tariffs were just providing the supply companies with a larger profit, none of which was returned back to the customer.
In many cases the difference in costs were not anything to do with the cost of the fuel but inefficiencies within the different companies. The "new" starters had the benefit of starting fresh with IT, few staff, only dealing with customers prepared to pay by DD, paperless billing and having most(all) of the system on-line. The big players have been playing catch up by reducing their staffing numbers by 10,000s. Even with greater staff to customer numbers some of the big, more expensive, players had a reputation for poor customer support.
Are you kidding ?. Some of the minnow cherry-picking 'energy' companies had almost no overheads. Some were set up in someones bedroom.
The big 6 suppliers employ thousands of staff, own fleets of vehicles and buildings to house them all. This costs money. Lots of money, so overall they don't make the sort of profits that you misbelieve they do.
The minnow companies just cream off the cheapskates with so-called lower rates but in many cases just ramp up the direct debit to keep your excess money for free. All this credit vanished when they went belly up and in normal circumstances you would have to join the end of the queue of creditors and probably never get it back. What is happening is that the 15 million on SVR are having £85 added to *their* bills to pay
*your* lost credit.Those 15 million are mostly (I suspect) home owners who have the vote. Boris is going to be slaughtered at the next election if he gives the switchers a free ride at the expense of those that never switched
I doubt it because the focus will be on the stupid rates everyone is paying, not that surcharge.
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