Tuesday, 20 November 2012

Fewer tariffs must be good.

The government says it wants customers placed on the cheapest available tariff and if you are paying more then you will be switched automatically to your supplier's cheapest rate.  Consumer groups warn that the plans could mean some of the cheapest tariffs on offer disappear. Well companies will want to  make what they consider to be a fair profit so they tell us that the government plans will lead to less choice for consumers.

Well I don't want a huge choice. I don't want to work out whether I am on the best tariff from the company that provides my energy. I don't want to compare the charges from my company and its rivals. For me four choices of tariff are three too much. It's not like going to a supermarket and comparing the price of a tin of beans with the rival supermarket and who does that? Supermarkets entice us with adverts and loss leaders and before you know it we are hooked. We go to the same supermarket(s) out of habit. Advertisers know the importance of image when we are buying anything. There isn't a lot you can do with the image of gas and electricity but if you can make people feel cosy with an image of an energy tariff then you will make more money.

If the choice of tariffs is reduced then that's not a bad thing. If we get value for money then that's a good thing.

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