13/11/2009

Poorer 'Want Help' To Switch Energy

A Consumer Focus Scotland study exploring the attitudes of disadvantaged consumers to switching energy supplier has found that many currently struggle to even understand their energy bills and believe that there are too many barriers to switching.

Switching Off: Attitudes to Switching Energy Suppliers Among Disadvantaged Consumers was commissioned after earlier Scottish Consumer Council research found that Scottish energy consumers were less likely to switch than those in other parts of Britain.

Research commissioned by the energy regulator Ofgem has also found that a significant minority of those who do change their supplier, do not actually benefit from having switched.

The study used focus groups to explore the views and concerns of disadvantaged consumers, including older people, those on low incomes, lone parents, people with learning disabilities and members of Black and Minority Ethnic (BME) communities.

Key findings included that disadvantaged consumers:
  • Are having difficulty understanding their energy bills and in monitoring how much energy they use
  • Face problems contacting energy suppliers, with automated telephone lines highlighted as a particular problem
  • Find that paying for energy is a significant part of their household costs
  • Are commonly using pre-payment meters, a more expensive way of paying for energy
Trisha McAuley, Interim Director, Consumer Focus Scotland, said: "Consumer Focus Scotland believes 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."

(CD/BMcC)

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