Switch
and save
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and save
Date: 13 May, 2003
Until recently,
it's not been easy being an energy supplier. Many utility companies have been
criticised by the industry watchdog, Energywatch, for causing debt by the late
issuing of bills and for not passing on savings enjoyed by households that switch
suppliers - as much as £100 per year. Andy Jackson takes a look at the report
and offers tips to make sure you get the best deal for your gas and electricity. Consumers
are missing out on savings offered by electricity suppliers according to a report
from the National Audit Office (NAO), a government watchdog. Almost
two-thirds of homes in England and Wales have stayed loyal to the power suppliers
used before the sector was deregulated. However, if a household switched to another
company, it could save up to 22% of their annual bill - around £50 - £100
according to the Consumers' Association 'Which?' magazine. So
have so many households stayed put? 'Customer inertia' was one explanation offered
by the watchdog, along with horror stories of pushy salespeople who employ devious
tactics to get households to switch. But
the report stated that customers that had switched their electricity supplier
at least once since 1998 had cut their bills by as much as 17%. The
NAO twisted the knife into the backs of electricity suppliers further by questioning
why customers loyal to their existing suppliers hadn't received some of the savings
enjoyed by those that had switched. It recommended that the electricity regulator,
Ofgem, should investigate. After the report was
launched on Friday, the rate of households switching suppliers trebled, so if
you're considering a change, here are a few pointers:
There are more than 20 gas and electricity suppliers in the UK and comparing the
prices between them is now very easy. Energywatch,
for example, publishes comparison tables six times a year on its website, www.energywatch.org.uk.
The tables show in pounds and pence how much you can save. You
can also get an idea about the customer service records of suppliers as the site
contains details of actual complaints, not just customer satisfaction indicators.
You can also give to Christian
Aid by switching supplier. Find out how this is achieved and compare companies
that service your area by clicking here.
Many suppliers offer 'dual-fuel'
deals where they will supply you with gas and electricity. The plus side of such
deals is that you get a combined bill from one supplier. However, they can be
more expensive than getting your gas and power separately.
If you pay by direct debit,
you can save up to 10% on your bill as suppliers don't have to chase late payers
and they pass on that saving to consumers.
For money saving tips in the
home, as well as grants available to homeowners: contact the Energy Efficiency
Hotline on 0845 727 7200 or its website.
If you believe something has
gone wrong with a change in supplier, recently introduced regulations mean that
you have seven days from the date you receive the written confirmation to cancel
the contract. If
you cancel your contract, is best to put this in writing and keep a copy of the
correspondence. If
a company contacts you by telephone, make sure you keep a note of the conversation
and the person's name. Owing
to the number of complaints and publicity independent companies have received,
there are better than average procedures in place for dealing with complaints.
If you have problems, call
the Energywatch helpline on 08459 060708 or e-mail enquiry@energywatch.org.uk.
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