loyalty doesn’t pay Big Six energy companies charge existing customers £300 a year more than new ones : Sun.

BIG Six energy firms are charging loyal customers over £300 a year more than new ones.

And the gap between the so-called standard rate that most families are on and the “teaser” rate to entice new customers is getting worse.

Energy prices are cheaper if you’re a new customer

Getty Images
Energy prices are cheaper if you’re a new customer

The Sun last year revealed seven in ten families were stuck on higher tariffs while new customers were offered cheaper deals.

New research by green power firm Bulb Energy shows in some areas nPower now charges existing customers £328 more than new ones — a 38 per cent surcharge.

In November the gap was £257 or 31 per cent.
Bulb Energy co-founder Hayden Wood said: “It’s most frustrating that this practice seems to be ­getting worse.”

Link : Sun.

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4 Comments

  1. The greed of these companies is astounding. This is the price we pay for Thatcher selling off utilities. The sooner they are re-nationalised, the better.

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  2. Loyalty never pays.

    Car insurance renewal always goes up every year, never comes down.

    The Automobile association (AA) membership starts for new customers at around £39, going up to £139 a year, and even if you don’t use them at all for years. It always goes up and up and up slightly every year.

    There’s no discount for not using their services. Just paying £130 odds every year for a plastic AA card (saying you’re a valued customer etc) and an acknowledgment in the form of a receipt.

    Quit the AA and try to be a new customer then ?. I did quit, but haven’t tried to renew as a new customer, but since my name and address is on their records for seven years in a row, I suppose I am not entitled to new customer status (even though I’ve never called them, or used them) with the result I wouldn’t be entitled to join for £39.

    No wonder these greedy companies are losing business.

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  3. Usually, when you ring up to cancel, they offer you a better deal. At least that’s true with Sky and mobile phone companies.

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  4. Their better deal was a reduction to £105. I politely declined their offer.

    I think £40 for the year would be fair, after all I wasn’t even using the service. And if I do make a call, then back up to normal rate the next year would be fair enough.

    So then, over a grand paid for a plastic card, and they can’t make a decent compromise, Nope, No Siree. They’re not on.

    Like

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