The electricity and gas companies were privatised by the Government in UK mainly to brig down the prices by creating competition. Now companies make cheaper offer to new customers and most of the UK households have switched supplier to avail the offers.
However according to Ofgem still there are electricity customers (about 53% of the total population) who remain loyal to their old suppliers. It is now an established fact that those who move away from the old supplier for the first time are the biggest gainer.
According to reports, those customers who remain loyal to old electricity supplier are now paying at least 10% extra during the year. In their traditional areas, the old customers are charged L32 more a year by such companies. However, due to competition, the same companies offer lower tariffs to new customers outside “home” areas.
According to Ann Robinson of Uswitch almost all companies, in 10 out of 14 electricity regions, are charging cheaper than the former monopoly supplier. The long standing customers are treated as cash cows, by asking them to subscribe more than the competitive prices that are being offered to new customers in other regions.
The Government has already advised customers to switch suppliers. Now it is for the customers to act and avail the benefits.
