Householders face energy barriers
Updated on 13 November 2009
People in Scotland who struggle to understand their energy bills are missing out on potential savings, a watchdog has said.
"Disadvantaged" householders face too many barriers when they try to switch suppliers and cut costs, according to Consumer Focus Scotland.
A study found that older people, those with learning disabilities and those in an ethnic minority had trouble contacting energy firms or simply found it "too much hassle".
Many people moving into new homes simply stuck with the established provider. The research was commissioned after a survey by the Scottish Consumer Council found that people in Scotland are less likely to switch suppliers than those in other parts of Britain.
Consumer Focus Scotland director Trisha McAuley said: "We believe that effective switching can deliver real benefits to individual consumers and the energy market as a whole by increasing competition. But this research highlights that those who might most benefit from switching energy supplier are currently least likely to do so.
"The significant barriers that exist to switching mean that many decide to stick with their current supplier, rather than seek a better deal elsewhere."
The report, Switching Off: Attitudes to switching energy suppliers among disadvantaged consumers, found people had difficulty comparing suppliers and tariffs and said automated telephone lines were a particular problem for them.
Many used pre-payment meters, incurring a higher cost per unit of energy used, rather than risk unexpectedly high bills. The report states: "Our research shows clearly that a lack of transparency of information is a significant barrier to consumers' understanding their existing bills.
"Further, in order for consumers to switch effectively, it is necessary for them to know accurately how much energy they use in a year and how much in total they pay for energy. Vulnerable consumers, especially those who are older, blind or partially sighted, people for whom English is not their first language and people with learning difficulties, would all benefit from access to a non automated telephone line.
"Their experiences suggest that not all suppliers make such a number available, or publicise it sufficiently."
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