Understanding utility bills getting harder

It has been claimed by officials from consumer watchdog group Consumer Focus that understanding gas and electricity bills is actually getting more difficult for some people, despite the fact that the energy regulator Ofgem has issued new rules that are aimed at making it easier for consumers to understand their utility bills from energy companies.

Around 10 percent of income is spent on gas and electricity, and officials are concerned that with the most expensive time of the year nearly upon us, where consumers will be using more energy due to the weather, many could end up paying over the odds because they are unable to work out what they should be paying.

The concerns come after it was revealed that one of the big six energy giants in the UK, Npower, had been inadvertently overcharging over one million households across the country, and those affected had not even noticed that they were paying too much for their energy usage.

Officials from Consumer Focus said that whilst Ofgem was trying to make it easier for consumers to understand their energy bills and avoid paying over the odds the situation actually appeared to be getting worse. This could be a combination of people finding it hard to work out what they should be paying or people simply not bothering to check their energy bills.

A spokesperson for Consumer Focus said: “If anything, we are seeing more complexity than before the rules came in. If I was an Npower customer, I would never have noticed that I was being overcharged. People don’t want their energy to be confusing – they want to be able to switch the lights on and forget it, but instead there are all these ridiculous structures.”

Tags: consumer watchdog, combination, energy regulator, ofgem, electricity bills, Consumer Focus, energy bills

Investigation over energy mis-selling to be carried out

It has been revealed recently that four of the big six energy giants in the UK are at the centre of an investigation over the mis-selling of energy to UK consumers. The investigation is to be carried out by the UK energy regulator Ofgem, which said that it had received complaints and reports from various sources suggesting that the four energy companies may have breached regulations with regards to energy sales.

The four energy giants that are facing questioning from the regulator as part of the investigation are Npower, Scottish Power, Scottish and Southern Energy, and EDF Energy. The investigation centres around sales made by the firms on both a face to face basis and over the telephone. It comes following new regulations that were brought in at the start of this year with regards to the sale of energy  contracts to consumers.

According to Ofgem more than 50 percent of energy customers that switched in 2008 did so after being contacted by an energy sales person, but in many cases the customers ended up on a more expensive tariff because they had been misled over their energy costs or had not been able to effectively compare costs against their existing tariffs.

The four energy giants have said that they will fully cooperate with Ofgem in the investigation, which will centre around whether they have breached the new regulations that were brought in at the start of this year. The new regulations required energy firms to ensure that estimates were given before any face to face contract were concluded and where possible comparisons were given to the consumer with regards to pricing compared to their existing provider.

Andrew Wright, of Ofgem, said: “We expect all suppliers to comply with these tougher obligations, but if our investigations find otherwise, we will take strong action.”

Tags: energy customers, energy, energy regulator, United Kingdom, Scottish Power, energy companies, regulator

Energy salesmen preying on vulnerable customers

It has been reported that in the run up to the winter, when many households and consumers may be concerned about their energy bills, unscrupulous energy salesmen may be preying on vulnerable consumers. Whilst regulators have tried to crack down on doorstep sales, it appears that many salesmen working on commission are still talking consumers into switching.

More worryingly is the fact that many of the vulnerable consumers that these salesmen are preying on end up on more expensive deals. Many of those that are being targeted by these salesmen are elderly or low income consumers, and this makes the situation even worse.

Tough new rules were imposed with regards to doorstep selling around eight months ago, but despite these new regulations the practice still continues. It is thought that last year around two and a half million consumers switched their energy supplier after sales staff from energy suppliers approached them on their doorsteps, in public places, or by phone in order to persuade them to switch.

The energy regulator Ofgem brought in new regulation with regards to these sales at the start of this year, and this involved the energy firms having to provide a written estimate before any sale or switch was concluded. However, consumer campaign groups are adamant that mis-selling of energy is still going on.           

An official from the consumer group Consumer Focus said: ‘We are very concerned that consumers are continuing to report being hit by bad sales practices. If any company is encouraging their employees to break the rules and talk customers into taking up an energy deal that leaves them worse off, there should be strict action from the regulator.’

Tags: energy regulator, Consumer Focus, half million consumers, energy suppliers, Tough new rules, energy regulator ofgem, energy firms

Energy firms probed over price differences

Two UK energy firms are being quizzed and investigated by regulators over differences in prices in different parts of the country, according to recent reports. Questions are being asked over why the energy providers are charging a particular price in one part of the country and a different price in another part of the country.

Amongst the discrepancies that appear to have been picked up is the fact that the price that the companies are charging in areas where they need to compete more is different to the price being charged in other areas. According to reports the two energy firms, which have not been named, are being asked ’serious questions’ by the UK’s energy regulator, Ofgem.

Ofgem has stated that if an official investigation is launched following the initial questioning then the two energy suppliers will be named. It was announced last year that energy firms could not apply price differences for no reason and that any difference in prices for energy usage had to reflect differences in cost to the actual supplier.

These changes, which were brought in last year by Ofgem, resulted in many energy customers seeing their bills falling, and in recent months the prices for those that were using a prepayment meter had dropped impressively from £111 to £69.

Whilst the questioning of the two energy firms continues industry experts have suggested that consumers who feel that they are being charged too much on their energy usage look into switching to a different provider. Many are surprised to find that when they do this they can get their energy far cheaper than with their current provider.

Christine McGourty, director of Energy UK, said: “Suppliers compete across all payment methods and tariffs, so it is important for customers to shop around to make sure they are on the best deal.”

Tags: energy, energy regulator, ofgem, energy providers, energy suppliers