Smart meter deadline passes

Energy suppliers in the UK have failed to meet their self-imposed targets for reducing the amount of back billing to consumers. Those with smart meters have been hit with unexpected bills following smart meters not reporting usage correctly.

Suppliers predicted that late 2016 would have been the end to this practice, however, none of the Big Six or independent suppliers have achieved this. They are still back-billing for 12 months, as opposed to reducing the period to six months.

Smart meters are due to be installed into all UK homes over the next four years, and will provide accurate readings in real-time for generating more accurate bills and avoiding any nasty surprises. Over 2 million of the homes already using these meters have experienced some sort of problem with the accuracy and have had to make additional payments.

Previously, Ofgem had commended this plan as a great improvement for customers who may have struggled in the past to provide accurate meter readings in time for their bill each month. Billpayers would be protected from surprising costs if the ability to read meters in real time prevented the amount of inaccurate bills.

Citizens Advice has hit out at Ofgem to try and create a stricter regulation on this practice, highlighting "it’s not right that people with this technology should suffer because of suppliers’ mistakes". The service dealt with 1,500 smart meter issues in 2016 and almost a third of those issues were directly related to billing problems - doubling the amount dealt with in 2015.

SSE came under fire earlier in the year as a software issue meant that users were looking at bills of more than £30,000. They have since issued a statement to say that a fix has been issued and correct readings can still be accessed on the website.

Julian Morgan, managing director of Energy Advice Line, commented on the importance of getting smart meters right. "Consumers will be reliant on this technology to keep track of their energy spend and ensure that they are only being charged for what they are using. Back bills have always caught customers out and hopefully suppliers can stick to their promises to ensure that this can be avoided in the future."

Figures from 2016 show that smart meters have been installed in around 8% of UK households so far.

To make sure that you are always paying the best price for your energy, visit energyadviceline.org.uk and check out the latest costs on the market.

Are business energy bills a worry?

More small and medium-sized firms should seek help with reducing their energy bills says The Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said a new survey by Vickers Energy Group suggested firms were not taking control of their gas and electricity supplies.

"It's crucial for SMEs not to put their energy supplies in the too hard basket and just coast along hoping for the best," Mr Morgan said.

Don't put off relocation

The Energy Advice Line has urged small businesses that need to move premises to get in touch after a survey showed 20% of firms put off relocating because they cannot face changing service providers.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users said it was unfortunate that so many business owners were staying in potentially inappropriate premises because dealing with suppliers was so hard.

“Small business owners should get in touch with us because we can sort out their business energy needs, leaving them free to get on with moving and ensuring their firms make a smooth transition to new premises,” Mr Morgan said.

Be aware of hidden charges

Consumers shopping for cheaper business electricity rates should ensure that they compare like-for-like tariffs following changes in the way some suppliers itemise their bills, according to the Energy Advice Line.

Some customers could be signing up to deals unaware that a Feed-in Tariff (FiT) charge was payable on top.

The FiT scheme was designed to encourage homeowners and businesses to invest in green technology such as solar panels and wind turbines. People who install the technology receive a subsidy and a guarantee that any surplus electricity will be bought back by the national grid.

Suppliers can not longer absorb the costs... 

The subsidy is paid for by adding an extra charge onto the bills of those who don't install the technology. Up until recently, most suppliers just incorporated this into their unit rate so it was invisible. However, this is changing. The number of people taking advantage of the FiT scheme grew tenfold in 2012 and, combined with the fact that the subsidy is set high to encourage people to join up, there's heavy financial pressure on the system.

It was only a matter of time before business electricity suppliers started itemising this as an extra charge, and some have started to do this. The crucial thing for consumers is to make sure that the price they are quoted for their electricity does in fact include this FiT charge, as we estimate that it adds a not-insignificant 2 - 3% onto a bill.
When comparing prices ask about the FiT Charge... 

When comparing energy prices, consumers need to be very careful that they are comparing like-for-like and ask suppliers whether the price they are quoting includes the FiT charge, or if it will be added on top.


Read more about 'Beware of Hidden Charges Before Switching Suppliers' here

Consumers left out of pocket

The Energy Advice Line has urged small and medium sized firms to hang up on cold callers offering to help them with their energy bills after an investigation was launched into a scam that leaves businesses hundreds of pounds out of pocket.

Julian Morgan, managing director of the price comparison, switching and advice service, said the swindle was further evidence that Ofgem should outlaw cold calling.

“The investigation into this fraudulent activity highlights what we have been saying for some time: businesses need to avoid dealing with cold callers,” Mr Morgan said.

“The majority of cold callers are not fraudsters, of course, but for many reasons it’s better to politely hang up on unsolicited callers offering cheap energy deals or anything else to do with their energy supplies.

“Cold callers are unlikely to be offering the cheapest deals on the market because they are often calling on behalf of a particular supplier, despite what they say to the contrary.

“Worse, they could be fraudsters trying to steal your money.

“Reputable and independent switching services don’t need to engage in call calling, so just hang up on anyone that calls out of the blue.”

Trading Standards officers in Nottinghamshire have launched an investigation into a company that targets pubs, cafes and takeaways offering to claim back up to £6000 on their utility bills.

The fraudsters, operating under a number of company names, arrange for “auditors” to review a business’ energy bills and then persuade the owners to sign an agreement to claim back money.

The signed-up business later receives a telephone call purporting to be from their energy supplier, who apologizes for overcharging them. The fraudsters complete their scam by persuading the business to sign a contract that contains a £325 fee in the small print.

“If it seems too good to be true, it probably is, and this applies to getting money back from energy companies or basic energy deals,” Mr Morgan said.

“If you believe you might have been overcharged for your energy – and this does happen due to malfunctioning meters or billing mistakes, contact your energy supplier directly.

“And when it comes to shopping around for the best deals, always do this through a reputable price comparison and switching service like the Energy Advice Line. This way you know you are getting independent advice.”

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 www.energyadviceline.org.uk

Europe powers on with renewable energy

May has been a great month for renewable energies - both Germany and Portugal successfully powered their electricity supplies using purely renewable technologies. Data revealed from an analysis by national energy network figures showed the Portugal's electricity was powered by solar, wind and hydro for a total of 107consecutive hours.

Beginning in the morning of the 7 May, the country was powered by renewables until the following Wednesday evening. This follows news that Germany announced their own clean energy day on Sunday 15 May - where their power prices went into negative figures several times throughout the day, effectively paying their consumers to use the energy.

The support for Portugal's wind energy fell in 2012, but despite this drawback the country has added 550MW of wind capacity over the past three years. During 2015 Denmark's electricity demand was fulfilled by 42% wind power - 20% in Spain, 13% in Germany, and 11% in the UK.

Clean energy supporters marked this as a breakthrough and a 'historic turning point', especially since the UK enjoyed it's first ever coal-free electricity generation. Looking to the renewable energy targets from the EU, we will no doubt see more of these stories over the next four years.

Julian Morgan, managing director of the leading price comparison and switching service said, "As electricity becomes cheaper to produce, we hope that consumers will be able to enjoy savings passed on by their suppliers.

"Our message to consumers, is that this will be a long time coming for energy customers. In the meantime, always be sure that you are paying the most competitive prices by regularly comparing the market and finding out the best deals for you."

Find out more information at energyadviceline.org.uk

Bills still baffle

Energy companies and Ofgem should further simplify bills following a new survey showing 60% of consumers are still confused by them, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users said the information provided to consumers about gas and electricity supplies needed to be clearer.

"This survey simply confirms what we already knew - consumers still find their energy bills baffling and this stands in their way of switching suppliers, because they can't compare tariffs like for life," Mr Morgan said.

"It's in the interest of energy companies to have complicated bills, which is why the energy regulator needs to step in and impose new rules so suppliers make the information they send out clear and simple.

"Previous measures put in place by Ofgem clearly haven't worked, and they need to go back to the drawing board."

Ofgem's previous reforms included a requirement for suppliers to provide details of the cheapest available tariff on customers' bills, yet almost half of those surveyed said they have seen no difference. More than half are unable to recall information about cheaper deals.

However, more than a quarter of those surveyed admitted they don't bother to check any details on their energy bills beyond the amount they have to pay. Younger consumers are the most ignorant; almost seven in ten of those aged between 18 - 35 admit they don't fully understand their bills.

Energy suppliers were voted the worst offenders for sending confusing bills, worse than water companies, mortgage lenders, councils, phone companies and credit card lenders.

"The complicated nature of energy bills is obviously a problem that has to be tackled," Mr Morgan said.

"It is unacceptable that consumers are still baffled by these bills, when energy now forms a significant proportion of household expenditure. How can energy users take control of their energy supplies and make informed choices about which supplier and tariff to go for, when they are bewildered by the information on their bills?"

But Mr Morgan said there was also a role for consumers to play.

"Energy users need to do themselves - and their bank balances - a big favour and actually read their bills carefully. We understand that this won't be the highlight of their day, but it needs to be done to avoid paying over the odds for gas and electricity.

"This is where the Energy Advice Line can help. Consumers who don't understand their bills, and would like to switch suppliers, can call us free of charge for help.

"We can explain the bill, search the market for the cheapest deal and arrange the switch accordingly, and it will cost nothing. It makes much more sense than remaining baffled, or worse, not opening your bill at all."

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

Smart meters: worth the money?

The Energy Advice Line has questioned whether a new metering system about to be installed in millions of home and businesses will be cost-effective.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said the technology had been rejected by Germany and found not to be financially worthwhile in other parts of the world.

"We are also very concerned that the technology might discourage consumers from switching suppliers, as the meters installed by one supplier might not be able to 'speak' to another," Mr Morgan said.

"At the very least, suppliers and regulators need to ensure that the next generation of smart meters is designed to encourage, not discourage, consumers to switch to save money on their bills."

Smart meters send information on energy usage directly to the energy supplier, eliminating the need for meter readings. The technology also allows consumers to see how much energy they are using in real time, enabling them to adjust their usage accordingly.

Although the EU has ordered all members to introduce the technology by 2020, as long as there is a positive financial case to do so, not all countries see any financial benefit.

Germany has rejected the system, arguing the cost to consumers of installing the equipment would outweigh any potential saving on their bills. Auditors in Australia and Canada have also found the systems too expensive.

However, some consumers who already have smart meters say that seeing the real cost of using appliances has encouraged them to adjust the way they use energy - by using the microwave more than the oven for example - which has saved them money on bills. The government says this kind of behaviour could reduce households energy bills by an average £26 a year up to 2020.

"While some consumers who already have the first wave of the technology installed have seen some benefits, there have also been problems," Mr Morgan said. "We are calling on Ofgem and the big six suppliers to ensure that the second wave of these meters deliver the promised benefits.

"The total cost of introducing this technology into 53 million homes and small businesses is estimated at £11 billion - and suppliers have admitted that at least part of this cost will be passed on to consumers.

"It is absolutely essential that the new generation of meters, which is already running late, is fit for purpose. This new system must not increase the financial burden on consumers or place obstacles in the way of them switching suppliers."

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

Consumers tricked by cold callers

An unsolicited cold caller has deliberately tricked a Business Electricity customer into a contract by claiming that they were calling from their current supplier, according to Energy Advice Line.

The customer was literally bombarded by calls from this cold caller and quoted to Energy Advice Line that she "could not get anything done in between calls" as the frequency was so high. The customer admitted that she was "badgered into submission" and eventually agreed to sign up.

Unfortunately, this is where the real issues started for this particular customer as when she contacted the supplier in response to a significant increase on her businesses bills she was told that she had been miss-sold the contract by the agency and the liability did not rest with them as the supplier.

 The customer was tricked... 

The customer was not just tricked into the contract but then found out that the bills had increased as a result. This is unfortunately the big problem with unsolicited cold calling as the customer is literally forced into contracts with high pressure sales techniques with no proof that the caller has checked the market to offer the best price possible. The sheer number of calls that the cold callers make is staggering but is purely designed to wear down the unsuspecting customer into agreeing a contract that is usually very heavily commission weighted.

Read more about 'Be Wary of Business Electricity Cold Callers' here

Energy Advice Line calls for cap on back billing

Energy regulators should limit the amount of money energy suppliers can back-bill consumers when they charge them incorrectly, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said householders and businesses should not have to suffer unexpected demands for money due to billing errors that were not their fault.

Last month it was revealed that millions of households had faced back bills averaging £206 after suppliers initially undercharged them in error. One in six people were told they were owed more than £250, while some people were hit with four-figure sums out of the blue.

Citizens Advice, which revealed the back billing problem, said 16,000 people had contacted the charity last year with bill concerns, and were worried about how they were going to pay.

"It's not fair that suppliers can back bill customers out of the blue for up to 12 months worth of gas or electricity, when they themselves were in error, due to a technical problem for example," Mr Morgan said.

"This places an unforseen burden on the budgets of households, as well as businesses, which I know suffer from this problem too.

"Customers should not have to pay the price for suppliers' mistakes. Consumers are already struggling with skyrocketing energy bills and this is the final straw for many who find it difficuly to make ends meet.

"Ofgem should drastically reduce and cap the amount of money suppliers can back bill customers.

"It should also ensure that consumers have a reasonable length of time to pay these belated bills.

"There is little incentive for suppliers to issue accurate bills when they can demand payment retrospectively. This is unfair and needs to change."

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