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Millions of customers missing out on big savings on their energy bill

Consumer Focus and Energy UK are urging consumers to take one simple step to call their supplier and find out how much they could save on their energy bills, by better insulating their home and checking they are on the best tariff or payment method.

The call comes during Big Energy Week, as millions of people are missing out on easy ways to make big savings for little or no cost. Taking advantage of free or discounted loft and cavity wall insulation offered by energy suppliers can save consumers an average £120 off their bill every year and switching to direct debit alone could save around a further £100 each year.1

Updated Government figures show that 9.6 million homes don’t have enough loft insulation and 7.8 million do not have enough cavity wall insulation – that’s one in every four homes.2 Every major supplier is offering free or cut price deals for loft and cavity wall insulation, yet not enough people are claiming these deals. Currently 100,000 households are taking up these deals each month when some 200,000 households could be taking advantage of them.

New Consumer Focus research3 also shows that millions of people would benefit from insulation and switching tariff or payment type, as the majority of consumers don’t think their home is as energy efficient as it could be or that they are on the cheapest deal. Key findings of the Consumer Focus research show that:

Two-thirds of consumers are not fully confident that their home is as energy efficient as it could be. Yet seven out of 10 of these consumers don’t plan to do anything to improve the energy efficiency of their home in the next year Almost half (47%) of consumers don’t know how thick the insulation in their loft is – so they don’t know whether it should be improved Over a third (35%) are unaware that suppliers offer free or discounted insulation which anyone can claim, and that the scheme is paid for out of customers’ bills. Two- thirds of consumers see paying around a £200 one-off fee for home insulation as a good investment as it will save at least £100 off their bill every year Only one in five people are fully confident that they are on the best deal that their energy supplier offers

Mike O’Connor, Chief Executive of Consumer Focus, said:

‘Millions of consumers are finding it hard to afford higher energy bills and every penny that can be saved counts. Yet many people are paying more than they need to because their home is leaking heat and they aren’t on the cheapest deal. Yet with one simple call to their energy firm many customers could make big savings on their bill.

 ‘Changing to a cheaper tariff or payment type can cut your costs. Many people also don’t realise that energy companies offer free or discounted insulation –and it’s a waste not to take advantage of these offers which could shave well over £100 off your bill every year.’

 Christine McGourty, Director at Energy UK, said:

‘Energy companies offer a wide range of help and advice and we’re urging people to get in touch with them and make sure they’re not missing out. By taking advantage of the offers of free or subsidised insulation, you can help keep your house warm for less. Big Energy Week is a great opportunity to see what simple steps you can take that could make a big difference. We know household budgets are stretched, but the companies are working hard to provide customers with the help they need, so don’t hesitate to ask.’

 The six major energy firms have made a commitment to help customers find out more about insulating their homes and whether they are on the best deal their supplier offers.4 If you call your supplier and ask about ways to save money, now they should alert you to free and discounted insulation deals they offer, the availability of cheaper deals, or both. This is a welcome move as almost seven out of 10 people surveyed by Consumer Focus said they would be likely to switch tariff or payment type if their supplier told them they could be on a cheaper deal.

 Energy customers can speak directly to their energy firm about the free or discounted insulation and other energy efficiency measures they may be able to offer you under the CERT scheme, and to find out if they could be on a cheaper tariff or payment type. The contact details for each supplier are below.5

British Gas – 0800 980 8177
E.ON – 0800 479 0162
EDF Energy – 0800 096 9966
npower – 0800 02 22 20
ScottishPower – 0845 2 700 700
SSE – 0800 072 7201

 People can also contact the Home Heat Helpline on 0800 336699 or Energy Saving Trust on 0800 512 012 for advice on saving energy and grants and schemes available to help make your home warmer and save you money.

 Factfile:

Consumer Focus research shows one in six people plan to only heat half, or fewer, of the rooms in their house this winter. One in 20 people will only be heating one or two rooms, rising to one in 10 of those in the poorest social group. Research by Citizens Advice shows 43% of people are worried they can’t afford their next fuel bill and one in two say energy bills will put a strain on their finances this year

 ENDS

Notes to editors:

 In Big Energy Week, 16 – 21 Jan 2012, charities, consumer groups, energy companies, switching sites, Ofgem and the Government are working together to give practical advice to people across the country to help them spend less on heating and powering their home. Advice events are being run in locations across the country. Find out more about Big Energy Week and what’s happening in your area at www.bigenergyweek.org.uk or pick up a leaflet from your local Citizens Advice Bureau.

Co-operative Energy Tel: 0800 954 0693
Ebico Tel: 0800 458 7689
Ecotricity Tel: 0845 555 7100 (domestic customers)
First Utility Tel: 0845 215 5000
Good Energy Tel: 0845 601 1410
Green Energy Tel: 0800 783 8851
Ovo Energy Tel: 0800 5999 440
Spark Energy Tel: 0845 034 7474
Utilita Tel: 0845 450 4357
Utility Warehouse Tel: 0844 815 7777

 Press office contact details:

Consumer Focus: Emma Adler, 020 7799 8004, out of hours 07770 433 433
Energy UK press office: Ben Jun-Tai, 020 7104 4169, out of hours 07983 469 764
Citizens Advice: Emma Brennan, 020 7833 7178, out of hours 0845 099 0107

Sharper focus needed on efficiency and consumer benefits of smart meters

Welcoming the Public Accounts Committee report on preparations for the roll-out of smart meters, Zoe McLeod, energy expert at Consumer Focus, said:

 ‘This report echoes concerns that we have raised repeatedly about the cost and rollout of smart meters. There are many potential benefits of smart metering but they will only be realised if Government gets its rollout scheme right.’

 ‘The costs of the scheme are huge. Customers, who will ultimately foot the bill, need to be confident that they will see tangible benefits that give value for money. The Government needs to listen to what consumer groups and MPs have to say, take stock of the scheme and bring a sharper focus on an efficient and controlled programme that has consumer benefits as its raison d’etre.

On roll-out co-ordination and cost:

‘Britain is one of the only places in the world to rely on a competitive supplier-led rollout and this presents some real challenges. Relying on competition alone risks adding complexity and cost to the scheme and will make it harder to achieve value for money. Greater coordination of supplier activity in installing smart meters will be essential if the scheme is going to work efficiently. Wherever energy companies can they should work with each other, local organisations and social housing providers to provide community-wide installations instead of a piecemeal approach.

 On reaching consumers:

‘The Government is developing a strategy to make sure the scheme engages with the needs of all consumers. This must be more than consumer-friendly window dressing and there need to be specific plans to reach vulnerable customers who are most likely to miss out. It is the opportunity to make sure the scheme is driven forward by its fundamental purpose – to transform the experience of energy consumers. The success of the scheme depends upon getting this right.’

 Consumer Focus is calling for: 

A strategy to deliver the consumer benefits – Government needs to be clear how this programme will benefit consumers and develop a road map to get there. This should include not just energy savings and accurate bills, but also wider benefits such as lower cost prepay tariffs and improved customer service, social benefits, and increased digital inclusion. Greater coordination of supplier activity and community based approaches. This will help consumer engagement and energy savings, reduce the number of visits to homes and keep costs down. Consumer Focus research shows that only 23% of gas customers and 28% of electricity consumers trust their energy supplier to help them go green and save money on their energy bill. An extra help scheme for low income and vulnerable consumers – to safeguard consumers and help them save money on their energy bills. Rollout provides a unique opportunity to deliver existing fuel poverty schemes more cost effectively  - these opportunities must not be missed. The communications and engagement strategy should include a lead role for Government; free customer access to high quality support and advice on how to use their smart meter to save money, including independent advice on how to save money; and minimum standards for energy displays – to ensure they are easy to use and can help customers budget more easily. Annual reporting on the costs and benefits to customers, including reporting on the impact on the fuel poor and prepayment meter customers.

 ENDS

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ScottishPower to cut gas prices - The Press Association

BBC News

ScottishPower to cut gas prices
The Press Association
"We understand that household budgets are tight in these tough economic times and with this in mind we are pleased to be able to pass on lower prices and help our customers when we can. "In October, we pledged not to increase standard prices for gas ...