You are here: Home - Household Bills - News -

Now is the time for energy firms to regain consumer trust, say experts

0
Written by:
11/06/2014
Energy suppliers should use the latest attack by the regulator to regain customers’ trust, according to industry experts.

On Tuesday, Ofgem wrote to the ‘big six’ suppliers – which combined provide gas and electricity to over 50 million homes – asking why household bills had not fallen despite cheaper wholesale energy prices.

Forward prices for next winter are 16 per cent lower for gas and 9 per cent lower for electricity compared with last winter, partly due to the mild winter weather, the regulator said.

With trust in energy firms at an all-time low, Jeremy Cryer from Gocompare.com Energy, believes now is the time for them to prove their commitment to consumers.

“Huge fines have been levied on several [suppliers] for malpractice, the regulator has also said it is considering referring the industry to the Competition and Markets Authority to find out why competition isn’t working for consumers,” he said.

“So now’s the time for the big energy companies to prove how committed they are to their customers by either passing on the savings that they are making, or explaining why bills won’t be falling.”

Clare Francis, editor-in-chief at MoneySuperMarket.com, said energy companies should end the ‘smoke and mirrors’ approach to pricing.

“In the past, energy firms have given rising costs as a reason for the increase domestic energy bills, but when it comes to wholesale prices falling they are quick to defend themselves for not passing on the reduction.

“There is little wonder there is so little trust in the energy market. The ‘big six’ need to play fair and end this ‘smoke and mirrors’ approach to pricing and help struggling customers at a time when energy bills make up a significant proportion of overall household expenditure.”

Ann Robinson, director of consumer policy at uSwitch.com, concluded: “Rather than long-winded explanations on why prices are so high, what consumers really need to see is a reduction to their energy bills. Actions speak louder than words.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week