Price caps are welcomed

The Energy Advice Line has welcomed hints from Prime Minister Theresa May that she will tighten rules governing energy prices and even extend price caps to protect more consumers.

"We welcome any measures that will bring suppliers into line and ease the burden on energy consumers," said Julian Morgan, managing director of the price comparison, switching and advice service.

"Suppliers have had ample opportunity to get their houses in order and start giving consumers a fair deal when it comes to prices.

"Although there have been some improvements, suppliers have continued to increase tariffs for some consumers by unreasonable amounts, in the face of falling wholesale prices. The government will now have to force their hand."

Following a two-year investigation into the UK's energy market, the Competition and Markets Authority (CMA) will soon introduce price caps for four million households that use pre-payment meters. The CMA's original proposals in 2015 would have protected more households, however, then Prime Minister David Cameron watered these down, and resitricted price caps to the most vulnerable energy users.

But Mrs May signaled at the Conservative Party Conference earlier this month that this protection did not go far enough. "It's just not right that two-thirds of energy customers are stuck on the most expensive tariff," she said.

Mrs May was referring to the vast majority of energy consumers who do not switch contracts or suppliers, remaining instead on standard tariffs that can be hundreds of pounds more expensive than the cheapest fixed deals.

"Huge number of consumers languish on the most expensive standard tariffs because suppliers do little to persuade them to move to something cheaper,"

Mr Morgan said, "After all, suppliers make most of their profits from customers who do this.

"Although it's also the responsibility of consumers to shop around for their energy and switch to the cheapest tariffs, suppliers should not be allowed to take advantage of those who don't.

"That's why we would welcome the extension of price caps to protect more consumers."

Mr Morgan added that the introduction of price caps would not obviate the need for consumers to shop around for energy.

"Shopping around for the best deals and switching suppliers accordingly will always lead to bigger savings than doing nothing and resorting to the protection of a price cap," Mr Morgan said.

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

Trouble getting the cheapest deals?

News has come out this week that some of the Big Six energy suppliers are barring their existing customers from being able to find the cheapest tariffs that they have on offer.

Having been uncovered by Radio 4's 'Moneybox' programme - researchers have found that E.ON, EDF, SSE, and British Gas have ensured that their existing customers are unable to make the most of the cheapest prices they offer to new customers.

These tariffs for existing customers can end up costing hundreds of pounds a year more than if they were to switch onto a more competitive tariffs designed to attract new customers.

Previously, this type of practice was ruled as unfair and banned by the industry regulator Ofgem in April 2014. Earlier this year Ofgem announced that they would no longer be reinforcing this rule after a recommendation from the Competition and Markets Authority (CMA).

Comparison agencies have compared the prices by either renewing as an existing member of the supplier, or registering as a new one, and with E.ON this price difference came in at £260. But E.ON is not the only one to employ this tactic.

Research by the BBC has found the following results from British Gas:

• 'Home Energy Exclusive June 17' tariff as a new customer - £735
• 'Home Energy Exclusive June 17' tariff as an existing British Gas customer - £972

These tariffs have also been shown to be hidden from other services such as the Energy Helpline because the information provided will rule them out of being a new customer with the existing supplier.

However, currently the consensus is that the other Big Six suppliers will not follow in the direction of their competitors. Scottish Power released a statement to say that they will not be offering these sorts of tariffs, stating that their customers can switch freely between the different tariffs on offer.

The best way to ensure that the price you are paying is competitive is to take on the advice of an unbiased and neutral help line, such as the Energy Advice Line. The leading price comparison and switching service provides free advice, and if you wish to change your supplier they will do all the hardwork for you from initial sign up through to completion.

To find out more visit energyadviceline.org.uk

More incentives needed for users to switch

The Energy Advice Line has welcomed new figures showing a 30% increase in the number of consumers changing suppliers in the first half of this year.

But Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said more needed to be done to incentivize consumers languishing on standard variable tariffs.

"We certainly welcome the fact that more and more consumers are heeding the message that they need to switch supplier to save money on their energy bills," Mr Morgan said.

"But there are still worrying numbers of householders paying over the odds because they're on standard tariffs - the most expensive way to pay for your energy.

"This significant core group of consumers needs to be targeted by the government and the energy regulator, and ways found to encourage them to change their habits so they don't continue to waste money by paying more for their energy than they need to."

Ofgem recently published new figures showing that more than 3.8 million UK households switch supplier in the first half of 2016 - around 1 million more than in the same period last year. Of these, around 1.6 million domestic customers switched gas suppliers and 2.2 million domestic customers switched electricity suppliers.

The data also shows that consumers have more choice than ever, with over 40 suppliers now competing for their business.

However, Ofgem's data also revealed that 66% of domestic customers were still on expensive variable tariffs, despite repeated warnings that switching supplier and moving to a cheaper, often fixed-term deal, could yield savings of £300 or more.

"Ofgem claims that introducing reforms recommended by the Competition and Markets Authority (CMA) earlier this year to better protect those on pre-payment meters and increase competition for all other customers, would encourage more people to switch," Mr Morgan said.

"However, their own figures show that much more needs to be done. There are some great deals out there, and more suppliers than ever to choose from, yet many people are either unaware of this and how much money they can save, or believe it's too difficult.

"Ofgem needs to drive home the message that, with winter coming, consumers need to be active when it comes to their energy suppliers and seek out savings."

To encourage more switching, Ofgem plans to trial "more effective prompts" on customer's bills to encourage them to compare different tariffs. But the regulator has ruled out capping standard variable tariffs.

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

Competition and Market Authority Report 2016

The Competition and Market Authority released their industry report last week. Despite the EU Referendum stealing the headlines, there is news that could be positive for the consumer. 

Government deals favouring suppliers are due to come to an end - currently energy providers are healthily rewarded for building power stations and generating energy. 

Often there is a set price for each unit of energy generated and this money goes towards the construction of infrastructure, usually an expensive implementation. 

However, these prices not only come from public money as a levy on bills but are also exceeding the current market rates. While it costs an additional £11 to every home owner's bill, annually it adds up to £310m. 

The CMA have put forward a recommendation that these deals should be awarded through auction, in turn saving the Government and consumers millions of pounds - in turn reducing their bills. 

You can start the savings early, and keep on top of them, by always ensuring your supply is coming from the provider with the cheapest rates. Energy Advice Line offer a free and unbiased comparison and switching service for both domestic and business consumers. To find out more and start the process visit energyadviceline.org.uk

Read the full report here.

CMA to post industry investigation

It's fair to say that publishing any kind of report on the day of the EU referendum means it will promptly be overlooked in favour of other news.

The Competitions and Market Authority will be releasing their industry findings later this week, however a lot has changed since it's launch two years ago. Massive price hikes from the Big Six have been taken on by the independent suppliers and the big suppliers are losing their hold over the market, but we're not safe from price hikes yet.

There will be four key pillars to the report on Thursday and speculation is well under way as to what the outcome will be.

Scale - CMA agrees that households are paying too much, and suppliers are still standing by their claims that the figures are 'nonsense'.

Price caps - one proposal is for customers with pre payment meters to receive a price cap, as these consumers are the most likely to be excluded from the best deals on the market.

Spam - a new database has been created from the details of customers who have not switched for three or more years, highlighting the importance and ease of switching. Needless to say, suppliers aren't keen on giving away their customer's data so suppliers can undercut them.

Tariff restrictions - this will enable suppliers to offer exclusive deals to new customers, while excluding existing customers from receiving the benefits.

Time will tell what is to become of the CMA report, in the meantime our advice remains the same - searching the market for the best deals will always be the way to ensure you're getting the best price on your energy spend. The service with energyadviceline.org.uk is always free and impartial, taking the hassle out of switching and saving.

CMA reviews plans to encourage switching

New plans revealed from the Competition and Market Authority (CMA) show tactics that could potentially overwhelm customers, create unneccesary confusion and harass customers. The scheme shows that the regulator will allow suppliers to contact customers who are failing to switch, Ofgem has warned that this idea could "overwhelm".

The CMA has also proposed to relax rules surrounding price comparison sites. With the aim of boosting competition in the market, this move could end up costing homeowners as much as £70 per year, despite many already overpaying currently.

However, a selection of the smaller, independent suppliers have contacted energy secretary Amber Rudd with their concerns that it would only benefit the 'Big Six' suppliers - as well as advising that the plan itself will backfire and leave homeowners worse off in the end.

Suppliers speaking out against the review are GB Energy Supply, COOP Energy, Go Effortless Energy, Bulb, So Energy and Zog Energy. They are increasingly worried about the consumers understanding of the market, "millions of people go to price comparison websites believing them to be transparent shop windows for the cheapest prices rather than 'brokers' in an increasingly skewed market."

Final recommendations are due to be published by the CMA in June. Since 2010 the market of energy suppliers has grown from just 13 to over 40 - with independents taking up 15% of the dual fuel market (previously only holding 1% share).

Energy Advice Line always believes in providing the best service for the customer, and always endeavour to deliver the best price based on the needs of the consumer. Price comparison is always fair, unbiased, quick and easy - the switching process, from start to finish, is all handled by the contract management team. Any questions, no matter how big or small, will be handled quickly and efficiently, leaving you more time to run your business and continue with life.

For more information, and to start your switch today, visit energyadviceline.org.uk

Government Pledge To Reduce Switching Time

The Energy Advice Line has welcomed a government pledge to reduce the time it takes to switch energy supplier to as little as 24 hours.

Julian Morgan, managing director of the price comparison, switching and advice service said the announcement was welcome as switching supplier remained the most effective way for consumers to keep their energy bills down.

The pledge follows the release of an interim report by the Competition and Markets Authority (CMA) last month, which found that one-third of consumers had never considered switching supplier even though those who shopped around paid less for their energy.

Live Energy & Climate Change Questions - House of Commons

Debate took place in the House of Commons this morning regarding the energy efficiency schemes and what is being done to further tackle the issue of climate change. Focusing heavily on the soon to be released Fuel Poverty Strategy and the recent issues regarding price cuts from the Big Six and independent energy suppliers, and what Ofgem and the CMA will be doing to ensure that these savings will be passed on to the domestic consumers.

Energy Secretary Ed Davey states that network costs count for a fifth of the domestic energy bills and historic analysis shows that these costs have been coming down since privatisation, but Ofgem do need to continue their pressure to bare down on this and ensure that the savings are then reflected in the consumer's bill. Currently the coalition has brought policy costs down by £50 and the UK is currently enjoying the lowest domestic gas cost in the EU - however are the price freezes helping the consumer, are they competent when instead further competition could help drive prices down further, a question posed by MP Steve Baker.

Davey agrees with Which? that we should be working harder towards market competitiveness, reforming the Big Six to reduce their market share and increase the independent suppliers as this will help to further increase the competition of tariffs and deals on offer. Profit margins for the Big Six are currently soaring due to the reduced wholesale prices so more needs to be done to pass these savings on to the consumers.

When posed the question of how much renewable energy will we see by 2015, compared to 2010, it is stated that the current government is the 'most green' it has ever been with renewable electricity generation up to 14% from 6.8% in 2010. Offshore wind is going to continue to insure the strong renewable energy mix, enabling these renewables to deliver their pledge.Wind power is essential but is obviously not 100% reliable which is why there is a mix in the renewable energy investments, including investments in the battery industry - developments to make sure that wind is more reliable when the subsidies come down.

The 'Solar Strategy' has so far helped businesses reduce their energy costs, with help from the Feed in Tariff for industrial businesses. It is reinforced that SMEs are essential to the growth of the economy so the government will continue to support them through the FiT to help with costs of solar capital and reduce the amount of tax payer money that goes towards this also. Predictions state that solar power will be subsidy free by the end of the decade, which is something to celebrate and the tax payer will also appreciate this. Solar remains as part of the renewable energy mix when looking at commercial energy strategy plans.

New legislation to be introduced will require landlords to ensure that their properties meet new energy efficiency standards by April 1st 2018, it is predicted that this will help around 1 million tenants when it comes to fuel poverty. Their properties must meet a minimal EPC rating of 'E' to pass this measure before they can be let. Reforms are made to the Green Deal and the Home Improvement fund to help a further 1 million homes become energy efficient in order to help tackle the issue of fuel poverty. So far, 445,000 Green Deal assessments have been made and evidence shows that 70% of these go on to install energy efficient measures, or plan to install these measures using the available options of the Green Deal Finance and their own savings/other financial options. More will also be done to help the insulation of park homes. Measures are being taken to ensure that families who are currently suffering from fuel poverty will be in EPC rated 'C' housing by 2030.

MP Kerry McCarthy questions the contributions of livestock towards global emissions and how people are being advised to further reduce their carbon emissions. The '2015 Global Calculator' has been recently released to show people how their every day decisions are making an impact on climate change, and lets them see what choices they need to make in the future to decrease their own personal impact.

While we await the Fuel Poverty Statement at the end of the month this certainly gives us a lot to focus on, especially given the forthcoming elections. It is, as it always is, important to ensure that you are paying the most competitive prices with your energy spend as this helps towards cutting your overall costs. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers with the Energy Advice Line. The service also offers a free advice service for business energy customers throughout the to of their energy contracts.

For further information visit www.energyadviceline.org.uk