Customers 'in the dark' about cheaper energy bills

Posted on 14 December 2007 by Charcol

Be the first to comment


Energy companies are failing to make their customers aware of their cheaper tariffs, according to comparison website Moneysupermarket.com.

The site says that by switching to their supplier's cheapest gas and electricity plans, an average household could save £150 on their energy bills each year. It adds that by failing to publicise such tariffs, energy companies are earning over £2.5 billion a year.

Spokesperson Paul Schofield said: "Energy providers rarely, if ever, tell existing consumers about cheaper options, as the more expensive tariffs allow them to offset the great deals they offer.

"Allowing existing customers to languish on old tariffs is a money spinner, but it doesn't help build trust or loyalty."

Mr Schofield called for a banking industry-style code for energy suppliers, where consumers would be notified if cheaper deals became available.

Commenting on the suggestion, Ofgem spokesperson Chris Lock told Charcol News: "Anything that provides a customer with more information about the range of tariffs their supplier has is useful."

However, he said that in many cases, consumers could save still more money by looking beyond their existing electricity or gas suppliers.

"What we very much encourage customers to do is look at the whole marketplace, use a price comparison service and see what savings you could make by switching supplier," he said.



Post a Comment

Please keep your comments relevant. Charcol reserves the right to edit or delete comments.

Terms & conditions

Your initial mortgage consultation is obligation free. There will be a minimum fee for our mortgage service of £450, of which £150 is payable when you apply, and we will retain the commission from the mortgage lender. Alternatively, you can choose the fee only option which is typically 0.65% of the amount borrowed. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed before you make a mortgage application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT

Legals

John Charcol is a trading style of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority; our registration number is 147692. John Charcol Associates LLP is an appointed representative of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority.  Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Registered in England No: 02292688.  This mortgage site is only directed at persons within the UK.   The FSA does not regulate some investment mortgage contracts.  Calls may be recorded for training and monitoring. Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.