Ofgem Urged to Investigate Network Costs

The Energy Advice Line has urged Ofgem to investigate network costs as a matter of priority in a bid to improve competition in the UK energy market and deliver lower prices to consumers.

Julian Morgan, managing director of the price comparison, switching and advice service for energy customers, said the costs were a significant factor in domestic and business energy bills and needed to be tackled.

The energy watchdog, Ofgem, has come under fire from MPs for failing to crack down on the energy distribution and transmission costs charged by network companies and passed on to consumers by suppliers.

MPs said the price caps intended to keep the costs down were too generous, and network costs were now a significant and overlooked factor in high bills.

Mr Morgan said the average dual fuel bill now cost more than £1300 per year, with network charges making up almost a quarter of the total. Ofgem needed to do everything in its power to reduce the effective monopoly enjoyed by network companies such as National Grid, Scottish and Southern Energy and Northern Power Grid, he said.

“Ofgem claims it will take eight years to see whether value for money is being delivered to the UK energy market as a result of its regulatory reforms but this is too long for hard-pressed consumers to wait,” Mr Morgan said.

“It needs to put pressure on both network companies and suppliers to reduce these network costs and pass the savings on. There is ample room for customers to enjoy much better value for money.

“The system is also too complex and confusing for consumers, with prices varying around the country and many people very unsure about what these charges are actually for.

“It’s time Ofgem used its regulatory muscle to force energy companies to bring these charges down and it make this aspect of energy bills simpler.”

MPs have asked Ofgem to investigate the feasibility of a national tariff to simplify charging and make prices less volatile, and called on the government to do more to encourage smaller generators to enter the market to increase competition.

“While there are some things that consumers have no control over, like network charges, they can do what they can to keep their bills down by shopping around and switching supplier to make sure they’re on the lowest possible tariff,” 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 www.energyadviceline.org.uk

Greater Transparency for Brokers Welcomed by EAL

The Energy Advice Line has welcomed a new Ofgem fact sheet that explains to SMEs the dos and don’ts of dealing with energy brokers.
Julian Morgan, managing director of the price comparison, switching and advice service for energy users said the sheet shone a much-needed light on the role of brokers and switching services – sometimes referred to as Third Party Intermediaries (TPIs).

“This information sheet simply and clearly explains the work of TPIs, offering small and medium-sized firms greater transparency when it comes to how services like EAL work,” Mr Morgan said.

Scam Leaves Businesses Hundreds of Pounds 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

Complaints & Energy Bills Continue to Rise

Increasingly shrewd energy consumers were exercising their rights and challenging poor service by suppliers, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service welcomed new figures showing a massive increase in the number of disgruntled customers lodging complaints against energy companies.

But he said it was disappointing that customers still had so much to complain about at a time when Ofgem was supposedly reforming the energy market with the best interests of consumers in mind.

According to the new figures, complaints to Ofgem have almost tripled over the past year as bills soared and the energy market came under the political and regulatory spotlight. A record 52,308 complaints were made in 2014 – 191% more than in 2013 and over four times the number received in 2012.

Have You Made the Most of New Year Deals?

The Energy Advice Line has urged consumers to shop around for new energy deals following reports that many popular fixed tariff products will come to an end on December 31.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said reports suggested bills could rise by up to £112 for some consumers.

“It’s very important for consumers not to turn a blind eye to their energy bills at this time of year because many fixed deals will be coming to an end during the festive season,” Mr Morgan said.

Angry Customers Lodge 3,500 Complaints a Month

Tens of thousands of angry consumers who have lodged complaints with the Energy Ombudsman should vote with their feet and switch suppliers, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service, said even though vast numbers of consumers were angry at their treatment by suppliers, too few of them took their business elsewhere.

According to new figures, the Energy Ombudsman received at least 3,500 complaints each month in 2014 from consumers with the main gripes involving bills, disputed charges and inaccurate meter readings.