Poll: Should this bill be passed into law?
As many are of the opinion, Aye (26)
56.52%
On the contrary, No (17)
36.96%
Abstain (3)
6.52%
This discussion is closed.
Birchington
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#1
V898 - Legacy Overcharging Bill 2015, TSR Government

LEGACY OVERCHARGING BILL 2015
An Act to regulate the overcharging of legacy customers by energy companies

BE IT ENACTED by the Queen's most excellent Majesty, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:-

1: DEFINITIONS
(1) A "Legacy Customer" is defined as a customer who has paid for the services provided by an energy company for 2 years or longer.
(2) "Overcharging" is defined as charging a customer a price for goods or a service higher that that advertised.

2: PUNISHMENT
(1) Any reported acts of overcharging will meet a penalty of 10 times the amount they overcharge their legacy customers.
(2) In the event that an energy company has faced penalties for 3 years in a row, the Secretary of State may choose to remove their licence.

3: COMMENCEMENT, SHORT TITLE AND EXTENT
(1) This Act may be cited as the Legacy Overcharging Act 2015.
(2) This Act shall extend to the United Kingdom; and
(3) Shall come into force on the 1st of January 2016.


Notes
This is the first bill aimed at putting into law the contents of the review from the Department for the Environment, Energy and Climate Change.

The amount that legacy customers have been overcharged by had increased from £20 on average in 2009 to £60 in 2013. This bill therefore has the potential to save customers substantial amounts of money on their energy bills and promotes ethical trading.

Since 2008 Ofgem has been aware that the Big Six have taken advantage of the stickiness of their legacy customers by charging them more than new customers. This has given the companies the opportunity to cross-subsidise discounts for new customers and undercut competition from challenger companies. Despite Ofgem’s attention to this issue, the amount legacy gas customers were overcharged almost trebled from £20 to just under £60 from 2010 to 2013. Legacy electricity customers have been overcharged by around £34 since 2011.

To illustrate this: British Gas could be earning in the region of £637 million more per year selling gas to its legacy customers than would be the case if other suppliers sold them the same amount of gas.

A new regulation will be introduced stipulating that the Big 6 will face an automatic fine every year at x10 the amount they overcharge their legacy customers. Ultimately the companies should face the risk of having their licences revoked if they continue to overcharge their legacy customers with the added risk of overcharging companies having their licenses revoked.
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Jammy Duel
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Nay

I would rather keep the bills down for the new customers and those that actually bother checking these things rather than those who are negligent or don't care.

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Josb
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Nay. People should use the capitalist competition between companies to keep the costs down.
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Jammy Duel
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(Original post by Josb)
Nay. People should use the capitalist competition between companies to keep the costs down.
You might want to remember that half the house don't believe that works on the basis of people being too stupid to manage their own affairs.
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Josb
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(Original post by Jammy Duel)
You might want to remember that half the house don't believe that works on the basis of people being too stupid to manage their own affairs.
I feel surrounded by communists when I come here.
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Jammy Duel
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(Original post by Josb)
I feel surrounded by communists when I come here.
Must be even worse when you can't even escape it in your party subforum
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Aph
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No because I see no issue with introductory offers and my issue with direct debit customers in regards to this bill weren't addressed.
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United1892
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(Original post by Josb)
Nay. People should use the capitalist competition between companies to keep the costs down.
It isn't working.
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Rakas21
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(Original post by United1892)
It isn't working.
When it comes to energy suppliers we actually see fairly low profit margins and easy switching so i'd say it does somewhat (albeit like bank accounts, a lot of people don't choose to switch). The real stinker in energy is the National Grid which has the sole franchise across the land and craps on people in the north to subsidise London and then on top of that a good 10% of your energy bill is taxation, all of which can be scrapped and either replaced by a tax elsewhere or via spending cuts as i'd prefer.

We do have a generating problem though since we end up needing to provide guarantees on stuff like nuclear rather than letting the market freely build what it's already chosen as the most efficient (coal).

On the bill though i said i'd abstain and have.
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RayApparently
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(Original post by Rakas21)
When it comes to energy suppliers we actually see fairly low profit margins and easy switching so i'd say it does somewhat (albeit like bank accounts, a lot of people don't choose to switch). The real stinker in energy is the National Grid which has the sole franchise across the land and craps on people in the north to subsidise London and then on top of that a good 10% of your energy bill is taxation, all of which can be scrapped and either replaced by a tax elsewhere or via spending cuts as i'd prefer.

We do have a generating problem though since we end up needing to provide guarantees on stuff like nuclear rather than letting the market freely build what it's already chosen as the most efficient (coal).

On the bill though i said i'd abstain and have.
Scrapping the tax would have to be accompanied by a price cap to stop the companies absorbing it as profit of course.
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Jammy Duel
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(Original post by RayApparently)
Scrapping the tax would have to be accompanied by a price cap to stop the companies absorbing it as profit of course.
Why would it? Competition laws would necessitate price cuts, you would merely be using it as an excuse to introduce price caps

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RayApparently
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(Original post by Jammy Duel)
Why would it? Competition laws would necessitate price cuts, you would merely be using it as an excuse to introduce price caps

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Informal collusion.
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James Milibanter
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(Original post by Josb)
Nay. People should use the capitalist competition between companies to keep the costs down.
(Original post by Aph)
No because I see no issue with introductory offers and my issue with direct debit customers in regards to this bill weren't addressed.
(Original post by Jammy Duel)
Why would it? Competition laws would necessitate price cuts, you would merely be using it as an excuse to introduce price caps

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Lol at the way you think the oligarchical nature of our energy sector allows for actual competition, and at the way you don't believe we should be stopping companies overcharging their customers.
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Jammy Duel
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(Original post by RayApparently)
Informal collusion.
(Original post by James Milibanter)
Lol at the way you think the oligarchical nature of our energy sector allows for actual competition, and at the way you don't believe we should be stopping companies overcharging their customers.
I must say, I did forget leaving the EU and then repealing all our price fixing legislation...
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Aph
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(Original post by James Milibanter)
Lol at the way you think the oligarchical nature of our energy sector allows for actual competition, and at the way you don't believe we should be stopping companies overcharging their customers.
If you want real change, nationalise. or go out and ban flights changing their prices as it gets closer to the departure ect. Or how about you stop introductory offers for Internet, mobile phones and everything else. Government policy should at least be consistent...
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James Milibanter
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(Original post by Aph)
If you want real change, nationalise. or go out and ban flights changing their prices as it gets closer to the departure ect. Or how about you stop introductory offers for Internet, mobile phones and everything else. Government policy should at least be consistent...
I don't know what you think overcharging is, but it's explained in the bill :facepalm:

(2) "Overcharging" is defined as charging a customer a price for goods or a service higher that that advertised.
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username456717
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Aye
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Aph
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(Original post by James Milibanter)
I don't know what you think overcharging is, but it's explained in the bill :facepalm:

(2) "Overcharging" is defined as charging a customer a price for goods or a service higher that that advertised.
Which would either mean introductory offers or being charged more due to paying via direct debit. If they pay more then the contract stipulates then that is covered in contract law already so what are you legislating against?
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James Milibanter
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(Original post by Aph)
Which would either mean introductory offers or being charged more due to paying via direct debit. If they pay more then the contract stipulates then that is covered in contract law already so what are you legislating against?
Aph, I'm legislating against the overcharging of customers, if you like families being ripped off for over £200 a year in many cases then fine, if not, then I really don't know what your problem is.

http://www.bbc.co.uk/news/business-33420734

http://www.independent.co.uk/news/bu...-10053050.html

http://www.theguardian.com/uk-news/2...-to-234-a-year
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Jammy Duel
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(Original post by James Milibanter)
Aph, I'm legislating against the overcharging of customers, if you like families being ripped off for over £200 a year in many cases then fine, if not, then I really don't know what your problem is.

http://www.bbc.co.uk/news/business-33420734

http://www.independent.co.uk/news/bu...-10053050.html

http://www.theguardian.com/uk-news/2...-to-234-a-year
Care to show the the penalty clauses in the contracts stopping people changing plan or supplier?
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