Household Bills
Energy myths stop households saving £300 a year
Energy myths and misconceptions keep consumers from changing supplier and potentially saving £300 a year, a report has revealed.
Just under half of those surveyed by uSwitch.com erroneously believed they would be responsible for handling a switch-over, while four in ten (38%) thought switching was difficult.
A further 15% wrongly thought they would end up paying two suppliers for the energy they’ve used and 7% believed their energy supply would be cut off during the switching process.
Some 3% thought their garden would need to be dug up and the same amount believed that the pipes and wires into their homes would have to be changed.
Ann Robinson, director of consumer policy at uSwitch.com, said: “The evidence is clear – with only 16% switching their supplier last year, millions of consumers are missing out on sizeable savings of nearly £300 a year on their energy bill. With skyrocketing prices and the cold weather creeping in, these savings could be a lifeline for those struggling to keep their heads above water this winter.
“Misconceptions are standing in the way of consumers having the confidence to make the market work for them. To bridge the gap between perception and reality we need a strong education programme that lifts the lid on the myths that plague the industry and helps consumers to navigate this notoriously complex and baffling market.”
Last month, the Government announced plans to train 500 volunteers to help consumers compare and switch energy bills, with energy secretary Edward Davey saying the move would “help create a legacy of savvy switchers”.
While Robinson called this a “positive sign”, she said the industry has a long way to go.
“More also needs to be done to simplify the market as it’s clear consumers are crying out for a streamlined process with better guarantees. Ofgem has made bold statements that its retail market review will go far to make the market simpler, clearer and fairer for consumers but the proof will be in the pudding,” she said.
Meanwhile, Labour leader Ed Miliband has vowed to freeze electricity bills to 2017 if the party wins the next election and replace Ofgem with a tough new regulator afforded powers to challenge companies and keep energy prices down.
