Why not go to bord gais 10% cheaper?

gizmo555

Fnergg wrote: »

Bord Gais Energy and Airtricity . . . have been focussing their customer recruitment campaigns therefore mainly on the middle classes, the customer segment most likely to be banked.

This is utter nonsense - BG in particular has been running a very high-profile mass market TV & radio campaign for months. How could this be described as "focussing" on the middle classes? Are you saying only the middle classes have televisions?

Fnergg wrote: »

Meanwhile, as you say, the fuel poor who would benefit the most from a price reduction receive the cold shoulder from BGE and Airtricity. No direct debit? Pay a €300 deposit. In other words, get lost. The Big Switch is not for the likes of you.

As has repeatedly been pointed out on this forum (including by ESB customer service representatives), ESB have the same deposit requirements. If the lady in the newspaper article linked to in this thread wants to switch back to the ESB without a direct debit, she'll have to come up with €300 for them too.

Fnergg wrote: »

You are quite right: it is fuel apartheid.

If so, ESB are engaging in it in just the same way as Bord Gais and Airtricity.

Catalpa1

Good morning Gizmo,
FIrstly I hold no brief for ESB Customer Supply BGe or Airtricity.I would probably describe myself as having an interesting in how the Energy market works with a particular emphasis on Renewables.
In relation to the points you make below.

This is utter nonsense - BG in particular has been running a very high-profile mass market TV & radio campaign for months. How could this be described as "focussing" on the middle classes? Are you saying only the middle classes have televisions?

I agree, BUT there is an element of "many are called but few are chosen" I know of a few cases personally with both BGE and Airtricity where if the customer strays away from the "terms of the contract" i.e does not honour the deposit/dd requirement they are disconnected, an example being the case last week of Airtricity disconnecting an elderly lady who had paid all her bills but didnt meet the dd/deposit requirement.
In a sense this is understandable ABC1 are what most suppliers want, they get their bill they pay by dd. They will read their meters, though I have a family member who has had MAJOR issues with BGE when submitting revised readings having been over estimated.So essentially it makes perfect business sense for the other suppliers to initially grab everyone they can and then weed out those who dont match the profile of an ABC1 and effectively force them back to ESBCS.

As has repeatedly been pointed out on this forum (including by ESB customer service representatives), ESB have the same deposit requirements. If the lady in the newspaper article linked to in this thread wants to switch back to the ESB without a direct debit, she'll have to come up with €300 for them too.

ESB Supply historically is the incumbent supplier, thus when competition came into the market they in essence had a credit history of every customer in the country. So for example the lady who paid all her bills with Airtricity and was disconnected. She comes back to ESB they know that she also paid all her bills with them ( this was stated on local radio in Cork) so when she moves back ESB don't see her as a credit risk they simple set her up as before NO DEPOSIT and NO DIRECT DEBIT requirment.
Some family members whose financial circumstances changed and they moved back to ESB were similarly convenienced, their previous history with ESB Supply was good so they were set up even down to using their original account number.
Now if you rang ESB supply today and had NO previous account with them I have no doubt they would charge you a deposit or a direct debit.
BGE have around 600k gas customers I wonder if you ring and wish to get your electricity supply from them will they use your existing gas account (assuming it is not on direct debit) as a basis for waiving your deposit.
So my own viewpoint is that yes there is an element of fuel apartheid, at play, those who cannot consistently honour direct debit or those who cannot pay €300 as a deposit will effectively be stuck with ESB Supply.You could make the case as other posters have that these are the very groups who need a discount the most.
Just my thoughts

Fnergg

gizmo555 wrote: »

This is utter nonsense - BG in particular has been running a very high-profile mass market TV & radio campaign for months. How could this be described as "focussing" on the middle classes? Are you saying only the middle classes have televisions?

As has repeatedly been pointed out on this forum (including by ESB customer service representatives), ESB have the same deposit requirements. If the lady in the newspaper article linked to in this thread wants to switch back to the ESB without a direct debit, she'll have to come up with €300 for them too.

My point is that thousands of unbanked customers of ESB Customer Supply are effectively disbarred from the opportunity of getting cheaper electricity because they cannot afford the €300 deposit requirements levied by BGE and Airticity.

It's not about "only the middle classes having televisions": it's largely about customers having bank accounts. Something like 25% of Irish households/individuals do not have a current bank account.

The ESB is forced by the Regulator to keep its prices higher than its competitors so that "competition" can be embedded in the Irish electricity market.

As long as this price regulation continues ESB Customer Supply will be unable to offer more attractive price offerings.

The customers who would benefit the most from cheaper prices therefore find themselves paying more than the better-off customers who have been able to switch.

"If the lady in the newspaper article linked to in this thread wants to switch back to the ESB without a direct debit, she'll have to come up with €300 for them too".

She has gone back to ESB Customer Supply and I understand that she has not been charged a deposit or required to pay by direct debit.

Regards,

Fnergg