Customers 'in the dark' about cheaper energy bills
Posted on 14 December 2007 by
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.
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