Thursday, 10 November 2016

Millions of consumers on 'energy autopilot'

Millions of consumers on 'energy autopilot'

Millions of businesses and households were missing out on substantial savings on their energy bills because they assumed they were on the cheapest tariff without actually checking, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said a new survey by the Energy Saving Trust showed the extent to which UK consumers were unaware they were paying too much.

The survey found thatm ore than 13 million British households missed out on savings last year because they didn't switch suppliers. It also revealed that a large number of consumers were on 'energy autopilot', with nearly 60% of non-switchers believing they were on the cheapest tariff available, which the Trust said was unlikely.

"This is further evidence that many businesses and households are missing out on substantial savings on their energy bills because they wrongly assume they are on the cheapest tariff," Mr Morgan said.

"The truth is that energy prices are always fluctuating and suppliers are constantly changing their fixed and non-fixed deals.

"This means that no-one can assume they are on the cheapest tariffs without shopping around on a regular basis, and switching supplier accordingly."

Recent figures from the enegry regulator Ofgem show that households can save around £300 each year just by switching suppliers, yet the majority of consumers fail to do this.

In fact, the Energy Saving Trust survey showed that consumers were more than twice as likely to change home insurer than energy provider, with only 24% oh households having switched at least four times in the past decade.

"These figures should really trigger alarm bells with Ofgem and the government, and prompt them to do more to encourage consumers to shop around and switch," Mr Morgan said.

"Bill and tariffs are still too complex for consumers to be able to compare deals easily, so more needs to be done to make it as simple to switch their energy supplier and their insurer.

"The government also needs to drive home the message that the savings to be made from switching supplier regularly really are substantial.

"Mostp eople wouldn't contemplate throwing £300 down the drain - yet this is what they could be doing by not being pro-active when it comes to their energy supplies."

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.

For further information visit energyadviceline.org.uk