Ovo News Update: Predatory Energy Firms Rip Off 85% of Customers
Ovo News Update: Predatory energy firms rip off 85% of customers. This was the accusation of the big six energy suppliers by Ovo boss Stephen Fitzpatrick.
The suspicions have been there fore a long time and now energy firms have been accused of ripping of the majority of those who buy energy from them. The rip off is allegedly being perpetrated so that the companies concerned can fund new low cost sign up deals that then see prices rocket when the deal runs out. It is estimated that the scale of the rip off could be to the tune of one hundred and fifty pounds per year per customer.
Some of the most common complaints are that new sign ups find that their costs rocket when the tempting new sign up deal expires and they find themselves on a ‘normal’ tariff. The big six have also had criticism levelled at them from government who have warned them that they are seen by most of the public as money grabbing and ruthless. Stephen Fitzpatrick accused Scottish Power in particular of being predatory.
The Ovo boss said that he did not believe that it was right that energy companies should have such large gaps between the lowest costs that they offer and the average cost that is the reality for most of their customers. He added that the industry was worth some thirty billion pounds but that no one wanted to enter it, which says a lot about the competition, and the way that things are run in the industry.
Ovo News Update
Defending their position bosses of the big six have said that one way in which energy customers can get a better deal for themselves is to switch energy suppliers to get a more advantageous tariff. They hit back by saying that they were always being labelled as the baddies each time energy prices rose with accusations of profiteering frequently being made. However the beleaguered energy customer has been told that their energy costs are likely to be more than two hundred pounds a year more until at least 2014.
One of the directors of the big six did said that he felt that the major of energy suppliers could have been guilty of being too clever with the measures that they had taken to maximise company profits in the past. However while the price of energy is rising and making a real dent in disposable income, there is likely to be little sympathy for the big six energy companies.
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