Here's why energy should be simpler

The Energy Advice Line has welcomed calls by an industry insider for the Big Six suppliers to introduce simple changes that would see customers paying less for their energy, and being treated more fairly.

Julian Morgan, managing directer of the price comparison, switching, and advice service for energy users, said regulators should heed the comments by First Utility, a leading independent supplier, and enforce the changes.

"First Utility has echoed what we have been saying for some time - that energy companies need to make simple changes, like actually talking to their customers, in order to restore trust and deliver them a better deal," Mr Morgan said.

"We hope that Ofgem takes on board what this supplier is saying and apply the recommendations across the market - and crack down on those who don't fall into line."

Ed Kamm, chief customer officer at First Utility, has claimed that the Big Six suppliers avoid communicating with their customers because they know customers are "overpaying".

Mr Kamm made the claims as he identified four simple changes suppliers should be forced to make to ensure households and businesses pay less for their energy and are treated more fairly. He said regulators should:

• force suppliers to talk to their customers: customers who were prompted to supply meter readings or switch to a new tariff when their deals epired, were likely to pay less for their energy
• call things what they are: 70% of major energy supplier customers are on a standard tariff, which generally costs hundreds of pounds more than the cheapest deal. Mr Kamm said there was nothing standard about this tariff and that it should be called 'out of contract tariff'
• make switching easier: introduce 24-hour switching and fine suppliers who fail to get it right
• make bills and tariffs simple: not succumb to pressure from suppliers to reverse recent changes that slashed the number of tariffs each supplier can offer to just four

Mr Morgan said all of the recommendations, especially making switching easier, could transform the relationship between customers and suppliers that had suffered so badly in recent years.

"If suppliers were customer-focused rather than profit-focused, all parts of the energy market would benefit, including suppliers themselves," Mr Morgan said.

"Customers should be told when cheaper deals are available, their tariffs should be simple to understand and it should be simple to change supplier if there are cheaper deals elsewhere.

"But this is not the way it works in practice. Suppliers have built their business models on discouraging customers from engaging with them or taking a pro-active approach to their energy supplies.

"It's got to change and we hope Ofgem takes heed of what this industry insider has to say."

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.

This 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

Energy should be simple - let's make it so

The Energy Advice Line has welcomed calls by an industry insider for the Big Six suppliers to introduce simple changes that would see customers paying less for their energy, and being treated more fairly.

Julian Morgan, managing directer of the price comparison, switching, and advice service for energy users, said regulators should heed the comments by First Utility, a leading independent supplier, and enforce the changes.

"First Utility has echoed what we have been saying for some time - that energy companies need to make simple changes, like actually talking to their customers, in order to restore trust and deliver them a better deal," Mr Morgan said.

"We hope that Ofgem takes on board what this supplier is saying and apply the recommendations across the market - and crack down on those who don't fall into line."

Ed Kamm, chief customer officer at First Utility, has claimed that the Big Six suppliers avoid communicating with their customers because they know customers are "overpaying".

Mr Kamm made the claims as he identified four simple changes suppliers should be forced to make to ensure households and businesses pay less for their energy and are treated more fairly. He said regulators should:

• force suppliers to talk to their customers: customers who were prompted to supply meter readings or switch to a new tariff when their deals epired, were likely to pay less for their energy
• call things what they are: 70% of major energy supplier customers are on a standard tariff, which generally costs hundreds of pounds more than the cheapest deal. Mr Kamm said there was nothing standard about this tariff and that it should be called 'out of contract tariff'
• make switching easier: introduce 24-hour switching and fine suppliers who fail to get it right
• make bills and tariffs simple: not succumb to pressure from suppliers to reverse recent changes that slashed the number of tariffs each supplier can offer to just four

Mr Morgan said all of the recommendations, especially making switching easier, could transform the relationship between customers and suppliers that had suffered so badly in recent years.

"If suppliers were customer-focused rather than profit-focused, all parts of the energy market would benefit, including suppliers themselves," Mr Morgan said.

"Customers should be told when cheaper deals are available, their tariffs should be simple to understand and it should be simple to change supplier if there are cheaper deals elsewhere.

"But this is not the way it works in practice. Suppliers have built their business models on discouraging customers from engaging with them or taking a pro-active approach to their energy supplies.

"It's got to change and we hope Ofgem takes heed of what this industry insider has to say."

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.

This 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

Will independent suppliers help you save?

The UK’s most highly rated price comparison and switching service for energy users has urged consumers in search of the best deals to seek out smaller independent suppliers.

Julian Morgan, managing director of the service ranked number one on consumer feedback site Trustpilot, said more independent suppliers were entering the energy market than ever and challenging the monopoly of the Big Six.

“The clear message for consumers is that there are highly competitive alternatives to the major players now and it makes sound financial sense to take a look at what the independents are offering,” Mr Morgan said.

“Consumers have made it clear that they have lost faith in the Big Six after years of high prices and lack of competition in the market. I am pleased to report that that situation has started to change.

“The suppliers on our panel now include more small and independent suppliers than ever before, and they’re offering highly competitive deals in a bid to take on the Big Six.

“We’re advising both domestic and non-domestic energy consumers to use a reputable and independent price comparison service like the Energy Advice Line to seek out the smaller players to see what they have to offer.

“These consumers could well save money and bag a better level of customer service if they do.”

Extra Energy, a highly competitive new entrant to the UK energy market, launched two new tariffs costing less than £940 in a bid to take the top spot for the cheapest dual-fuel energy tariff of 2014.

In November it was reported that more than 36% of all consumers who switched energy supplier had switched to Extra Energy to take advantage of the big savings being offered to homes and businesses.

The company claims that by running “a highly efficient and lean operation” that does not advertise it is able to pass on big savings to consumers.

Mr Morgan the business model adopted by Extra Energy and other new entrants to the UK energy market was proving very popular with business and domestic energy consumers.

“High prices, poor service and tarnished reputations of the big energy suppliers are prompting more and more consumers to consider their options,” Mr Morgan said.

“Lots of consumers are now switching to small, independent suppliers that might not be household names but are offering competitive deals and the prospect of better customer service.

“Smaller companies are often more nimble and customer-focused because they have to be competitive to get ahead. This is winning over customers who have lost faith in the Big Six.”

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

Seek independents when switching this year

The UK’s most highly rated price comparison and switching service for energy users has urged consumers in search of the best deals to seek out smaller independent suppliers.

Julian Morgan, managing director of the service ranked number one on consumer feedback site Trustpilot, said more independent suppliers were entering the energy market than ever and challenging the monopoly of the Big Six.

“The clear message for consumers is that there are highly competitive alternatives to the major players now and it makes sound financial sense to take a look at what the independents are offering,” Mr Morgan said.

“Consumers have made it clear that they have lost faith in the Big Six after years of high prices and lack of competition in the market. I am pleased to report that that situation has started to change.

Keep energy simple

The Energy Advice Line has welcomed calls by an industry insider for the Big Six suppliers to introduce simple changes that would see customers paying less for their energy, and being treated more fairly.

Julian Morgan, managing directer of the price comparison, switching, and advice service for energy users, said regulators should heed the comments by First Utility, a leading independent supplier, and enforce the changes.

"First Utility has echoed what we have been saying for some time - that energy companies need to make simple changes, like actually talking to their customers, in order to restore trust and deliver them a better deal," Mr Morgan said.

Independents suffer as wholesale prices rise

The volatile state of the current energy market has been highlighted within recent weeks, indicated by the collapse of GB Energy in November. As one of the new independent suppliers, GB Energy had 12 staff and around 160,000 customers on the database. But what caused their demise?

Wholesale prices have risen dramatically over the past few months and smaller energy suppliers are struggling to keep up with supply and demand.

Industry analysts and experts predict that this will be an ongoing trend over the coming months and years for the new suppliers as they can't handle the rising costs of supplying their customers. Despite having a poor year, it looks as if the Big Six will start to see an increase on their market share with more independents dropping from the race.

The UK government has encouraged the development of over 40 companies in the last five years due to their belief that the competition will help to drive down the overall cost of customer's bills. Weaker prices in 2014 allowed new suppliers to take advantage and offer more appealing deals to potential customers.

Prices were already on a steady rise in the UK following the trend of oil prices, however the decision to leave the EU resulted in higher costs for importing gas, coal and electricity.

Four of the Big Six energy suppliers are owned by companies in mainland Europe, so it is currently believed that their prices may not be too drastically affected. EDF is French, EON is German, Scottish Power is part of a Spanish company, and NPower run by a company in Germany.

Power supplies are tightened heading into winter as demand rises. How this will affect prices for consumers is yet to be seen.

It is more important than ever to make sure that the price you're paying is the most competitive on the market. GB Energy customers have been taken over by Co-Op Energy, however there is still the option to shop around - an automatic transfer may not always mean the same tariff or discounts. For more details on saving on your energy spend visit energyadviceline.org.uk

Big Six market hold is slipping

New research shows that one in six energy customers are now actively choosing an independent supplier. This has grown from one in eight dual-fuel customers over the past year and is predict to grow still.

Cornwall Energy conducted a survey finding that 17.4% of dual-fuel customers now received their supply from independent suppliers, such as themselves.

Robert Buckley, director of Cornwall Energy, said: "This data shows one of the biggest shifts to independents in the past 12 months."

The Big Six consists of British Gas, EDF Energy, npower, E.ON, Scottish Power, and SEE. Combined they have lost a total of around 7.1 million customers to independent suppliers since 2011. The dual-fuel market share of the big six has fallen from 99.3 per cent in 2011 to 82.6 per cent in 2016.

Aloing side this new research from Which? has found the cost gap between the cheapest dual fuel tariff and a standard dual fuel tariff from one of the so-called 'Big Six' suppliers has soared up to 81% in the last two years. The cheapest dual fuel deal available has increased from £182 to £329 since 2014.

At one point during its research in February 2016, Which? found that people on standard tariffs could save £400 a year by switching away from the Big Six suppliers to the cheapest tariff.

A standard tariff is what you are moved onto once your energy deal comes to an end, but these tend to be very expensive. Millions are thought to be on these tariffs with the Big Six and paying much more than they need to.

Make sure that the price you're paying is fair, use an independent price comparison service such as energyadviceline.org.uk - and make the most of the free switching service and account management.

One Million Consumers Ditch Big Six

New figures that show more than one million consumers ditched the Big Six suppliers in favour of smaller companies over the past year were no surprise, according to the Energy Advice Line.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said there had been a noticeable drift away from the major suppliers in the past year.

"Years of bad service and high prices have taken their toll on the Big Six and these figure confirm that," Mr Morgan said.