MPs are calling to bring forward a price cap in the domestic market. Whilst on the face of it, it sounds like a good idea, the truth is that it probably isn’t. Why? The likely result of a price cap is that suppliers pull their cheapest tariffs and customers become even less engaged, under the mistaken belief that they’re being taken care of. The reality is that whilst they won’t be overcharged as much as a customer on a standard variable tariff, it certainly won’t mean they’re on the cheapest tariff available to them.
Ofgem published research yesterday that highlighted 2 key things: Firstly, the problem is not standard variable tariffs in that it’s not the name that is an issue, and whatever replaces them risks being not much better than what we have today. Secondly, what customers really want is to automatically be switched to the cheapest tariff available to them.
Thankfully, this is where Labrador can come in as the only service that can provide a personalised and automated switching service. So instead of the government spending time and money on making the energy market less competitive, hopefully, it can focus on making it more competitive, which of course is one of our core ambitions. That way, the government might even have money to direct elsewhere…
In other news (yes, energy tends to be in the press virtually daily given it’s an issue that affects us all!) three-quarters of all fines issued to energy suppliers in the last 10 years have related to supplier failure to meet their obligations in relation to domestic customers.
It’s not hard to see what is likely to be at the heart of those issues – the Energy Ombudsman releases annual reports which highlight the key customer complaints relate to billing and switching. Again, being areas where Labrador can radically improve the customer experience – if you have a smart meter (that also happens to work no matter which energy supplier you choose to be with), then you should enjoy accurate bills. And an independent switching service that can also make easy opening and closing meter reads, has the potential to make real impact.