A question about : Threat to Sainsburys?
https://home.bt.com/lifestyle/money/m...11363964245094
Quote:
The big energy companies must tell customers if they supply gas and electricity to other companies whose tariffs are cheaper than their own, regulator Ofgem has ordered. Under so-called 'white label' arrangements bigger companies supply energy to companies who don't hold their own supply licence. For example, Sainsbury's Energy is powered by British Gas, while M&S Energy and Ebico are powered by SSE. Current Ofgem rules state that suppliers have to tell their customers about their cheapest deal, but until now this has not applied to tariffs from white label brands. Closing the loophole This loophole will be closed from July. |
I cannot see BG allowing Sainsburys to undercut them by such a margin in future.
Best answers:
- For once Cardew, I disagree. For BG this Sainsbury's tie in is shoring up their market share - they are losing the switchers (only 95% are now with Big 6 compared to 99% a few years ago) to smaller suppliers, and plenty of those will go to Sainsbury's.
They will still continue to have the "stickies" who have their gas with BG and electricity with the legacy regional supplier, usually paying through the nose on standard tariff.
BG do all the leg work, billing customer service etc. I imagine the royalty fee they pay Sainsbury's is relatively low and will of course have been thoroughly costed. - You may well be right, but if publicised enough some of the 'stickies' might change a 'habit of a lifetime' and switch.
The publicity would need to come from the Tabloids - or someone on East Enders/Coronation Street switching; perhaps Dirty Den or Ena Sharples could set an example
TIC of course! - I agree this is unlikely to save anyone money, it will probably result in cheaper deals being withdrawn from white labels. You might see someone like BG set up a new company just to provide the white label suppliers, if the new company has it's own energy supply licence it would then mean BG don't have to tell their retail customers about Sainsburys deals etc. Just a waste of effort really.
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