This may sound strange to some people, but it really is quite simple math, and the coalition government, especially Mr Davey, should be held to account and asked to explain why they are inadvertently adding to costs, whether in innocence or through a lack of understanding on how businesses pass on costs to customers.
Switching utility Company(s)
What happens when you use a switching company to move utility providers, well they get paid a commission. Does the consumer pay directly for this service, the answer is No. However, the cost to the utility company being X is passed on in general costs and an increase in tariffs. No free lunches.
We are all aware you can freeze the price of your utility for a period of time, but what does this action mean in reality. One; if you switch and international energy prices fall you lose out. But more likely you are just putting off the inevitable increase, great your circumstance may change for the better, but the fact is you will pay in the end.
And what about those loyal customer(s) who do not opt into freezing their utility bill, well they have to pay for those that do. Yes you guessed it, through higher general tariffs or standing charges. Whatever way they choose the consumer will always foot the bill.
Some people might not realise this, but when Gordon Brown ‘stole’ £20bn from the mobile companies for 3G spectrum, who paid, yes you guessed it, mobile charges were set higher to re-coup the monies over time.
Now how can we ensure Energy prices are kept to a minimum, the answer is to take away government, bureaucracy, regulations and allow individuals to purchase directly from Energy pools. With the buyer making the decision on final pricing to be paid, with a standing charge for delivery to your house, flat or mansion. It really is not rocket science, it just means taking responsibility & stop being lazy.