A big problem is that where we have a good solution you'll lose if you insist on that solution but other people get away with doing something that's crap but customers like better. We often have to mandate a poor solution that will be tolerated because if we mandate the better solution it will be rejected, and if we don't mandate anything the outcomes are far worse.
Today for example I changed energy company†. I made a telephone call, from a number the company has never seen before. I told them my name (truthfully but I could have lied) and address (likewise). I agreed to about five minutes of parameters, conditions, etc. and I made one actual meaningful choice (a specific tariff, they offer two). I then provided 12 digits identifying a bank account (they will eventually check this account exists and ask it to pay them money, which by default will just work) and I'm done.
Notice that anybody could call from a burner and that would work too. They could move Aunt Sarah's energy to some random outfit, assign payments to Jim's bank account, and cause maybe an hour of stress and confusion for both Sarah and Jim when months or years later they realise the problem.
We know how to do this properly, but it would be high friction and that's not in the interests of either the "energy companies" or the politicians who created this needlessly complicated "Free Market" for energy. We could abolish that Free Market, but again that's not in their interests. So, we're stuck with this waste of our time and money, indefinitely.
There have been simpler versions of this system, which had even worse outcomes. They're clumsier to use, they cause more people to get scammed AND they result in higher cost to consumers, so that's not great. And there are better systems we can't deploy because in practice too few consumers will use them, so you'd have 0% failure but lower total engagement and that's what matters.
† They don't actually supply either gas or electricity, that's a last mile problem solved by a regulated monopoly, nor do they make electricity or drill for gas - but they do bill me for the gas and electricity I use - they're an artefact of Capitalism.
Comments
A big problem is that where we have a good solution you'll lose if you insist on that solution but other people get away with doing something that's crap but customers like better. We often have to mandate a poor solution that will be tolerated because if we mandate the better solution it will be rejected, and if we don't mandate anything the outcomes are far worse.
Today for example I changed energy company†. I made a telephone call, from a number the company has never seen before. I told them my name (truthfully but I could have lied) and address (likewise). I agreed to about five minutes of parameters, conditions, etc. and I made one actual meaningful choice (a specific tariff, they offer two). I then provided 12 digits identifying a bank account (they will eventually check this account exists and ask it to pay them money, which by default will just work) and I'm done.
Notice that anybody could call from a burner and that would work too. They could move Aunt Sarah's energy to some random outfit, assign payments to Jim's bank account, and cause maybe an hour of stress and confusion for both Sarah and Jim when months or years later they realise the problem.
We know how to do this properly, but it would be high friction and that's not in the interests of either the "energy companies" or the politicians who created this needlessly complicated "Free Market" for energy. We could abolish that Free Market, but again that's not in their interests. So, we're stuck with this waste of our time and money, indefinitely.
There have been simpler versions of this system, which had even worse outcomes. They're clumsier to use, they cause more people to get scammed AND they result in higher cost to consumers, so that's not great. And there are better systems we can't deploy because in practice too few consumers will use them, so you'd have 0% failure but lower total engagement and that's what matters.
† They don't actually supply either gas or electricity, that's a last mile problem solved by a regulated monopoly, nor do they make electricity or drill for gas - but they do bill me for the gas and electricity I use - they're an artefact of Capitalism.