Got a letter from our energy supplier, dated 6/12/2013.
"We're changing your energy discounts and rewards".
"As part of an industry wide programme to create a simpler and clearer, fairer and more competitive energy market, blah,blah,blah..............
We want to assure you though, that you will not pay any more on this tariff because of these changes.
What these changes mean for you - Discount for how you pay.
You currently receive a 6% discount for paying a fixed amount each month by Direct Debit. If you continue to pay this way you'll still get the equivalent of a 6% discount but this will reflect as a reduction in both your rates and standing charges."
This is where it gets interesting. The paragraph continues, "If we cannot collect your Direct debit on two occasions we will cancel your Direct Debit instruction and send you a bill each quarter, which you will need to pay within 14 days. We will write and let you know that we are doing this. Your unit rates and standing charge will increase by 3.2%.
If you do not pay on time we may move you to our standard tariff" (????). "This is a variable tariff and its prices may be higher than your current tariff.
Your new unit rates and standing charges are shown in the table on this letter."
Well now. The reassurance of being fairer and clearer has smoothly diverged into one of dire threats if D/Ds cannot be collected.
Also, if any accounting errors occur (we do know that this can, and does, happen), some customers will find it more confusing and difficult to trace a discounting error - saves their admin problems if errors go undiscovered, of course.
What about 'rounding up'? Whereas rounding up one final figure for the discount, they will now 'round up' four separate figures - electricity: standing charge, first unit rate and remainder unit rate. - Gas: standing charge, first unit rate and remainder unit rate. Might be very insignificant individually, but very lucrative across millions of customers.
Worryingly for some of our more vulnerable older folk, the double-edged sword of this letter could raise considerable fear that in some way they may have done something to cause the contents of this letter. The supplier will obviously brush it aside as a "standard letter", but it is a badly phrased and thoughtless standard letter.
The industry has already earned bad press, and it and parliament have started to draw up battle lines for confrontation in the near future. What backroom steps by the industry's accountants, to counter government interference, are already being devised, and how financially disastrous to the energy users might that be(for it is the users who will pay for non-viable impositions resulting from government fudging?
"We're changing your energy discounts and rewards".
"As part of an industry wide programme to create a simpler and clearer, fairer and more competitive energy market, blah,blah,blah..............
We want to assure you though, that you will not pay any more on this tariff because of these changes.
What these changes mean for you - Discount for how you pay.
You currently receive a 6% discount for paying a fixed amount each month by Direct Debit. If you continue to pay this way you'll still get the equivalent of a 6% discount but this will reflect as a reduction in both your rates and standing charges."
This is where it gets interesting. The paragraph continues, "If we cannot collect your Direct debit on two occasions we will cancel your Direct Debit instruction and send you a bill each quarter, which you will need to pay within 14 days. We will write and let you know that we are doing this. Your unit rates and standing charge will increase by 3.2%.
If you do not pay on time we may move you to our standard tariff" (????). "This is a variable tariff and its prices may be higher than your current tariff.
Your new unit rates and standing charges are shown in the table on this letter."
Well now. The reassurance of being fairer and clearer has smoothly diverged into one of dire threats if D/Ds cannot be collected.
Also, if any accounting errors occur (we do know that this can, and does, happen), some customers will find it more confusing and difficult to trace a discounting error - saves their admin problems if errors go undiscovered, of course.
What about 'rounding up'? Whereas rounding up one final figure for the discount, they will now 'round up' four separate figures - electricity: standing charge, first unit rate and remainder unit rate. - Gas: standing charge, first unit rate and remainder unit rate. Might be very insignificant individually, but very lucrative across millions of customers.
Worryingly for some of our more vulnerable older folk, the double-edged sword of this letter could raise considerable fear that in some way they may have done something to cause the contents of this letter. The supplier will obviously brush it aside as a "standard letter", but it is a badly phrased and thoughtless standard letter.
The industry has already earned bad press, and it and parliament have started to draw up battle lines for confrontation in the near future. What backroom steps by the industry's accountants, to counter government interference, are already being devised, and how financially disastrous to the energy users might that be(for it is the users who will pay for non-viable impositions resulting from government fudging?