Naivety? Decency?

The news today has had various reports, interviews, commentaries and evasion regarding the high number of long-standing customers of the top 6 energy suppliers paying more than the cheapest rate.

Whilst the industry’s position is basically “If you don’t ask for a change, we will charge you the higher rate – because we can”, it strikes me that this is just another example of how ‘The Market’ fails the majority.

If you want a mobile phone, there are an infinite variety of makes, models and packages to choose from, and the choice is yours. You don’t NEED a mobile phone, there are alternatives, and what you select, or get lumbered with, is up to you, and the small print.

Electricity is electricity, gas is gas. If there were faster versions in the cables, or hotter versions in the pipes, then a market makes sense. But it is what it is. So the price is down to what the supplier can get away with. And if you do not keep track on when your contract expires, then any appealing introductory rate disappears and back you go to the higher (highest?) rate.

Now, those introductory offers can only exist because the majority of customers don’t change supplier after the contract ends, and the difference subsequently charged covers the lower introductory price. At least, that would be the fairer argument.

However, I am not convinced that that is the truth. If the introductory rate is a viable economic price for the provider, then this is nothing less than exploitation of a population by providers of necessary energy.

I will hold my hands up and admit that I am a foolish and muddled socialist, who sees more value in social provision than individual acquisition; but I do accept that commercial markets exist, and will continue to do so.

But does it have to be at its most avaricious in every sector? There must be circumstances where, because we have no choice regarding the energy we use, that a more supportive and less exploitative approach can prevail. As always, those with less will always suffer more, so go on Theresa May, start caring for them all right here!