New energy statements failing to make impact

A recent survey that was carried out has suggested that new energy statements that were launched to make the energy market more competitive and improve understanding of payments for consumers are failing to have the desired impact. The survey was carried out by the price comparison service uswitch.com and involved questioning consumers about the new annual energy statements that have been brought in.

However, despite the aims of the annual statements is appears that consumers had either not received the new statements or may have received them but did not realise that they had received them. The statements are supposed to have been delivered to all homes in the UK and are meant to explain the various discounts that are available on different tariffs so that consumers can get the best deal possible on their energy.

Any household that hasn’t yet received one of these statements is due to receive one soon, but many may not even realise that they have received their statement. One industry group has described the statements as a ‘huge undertaking’. Suppliers were told to start sending out the first of these statements by the end of last year by the energy regulator Ofgem. The aim of the statements is to make consumers more aware of their energy use and why they may be paying as much as they are, with the hope of encouraging more competition in the market.

Ann Robinson, director of consumer policy at Uswitch, said: “Annual statements are a linchpin of Ofgem’s push to get the competitive energy market working properly, but consumers clearly do not think they are coming up to scratch. The vast majority of households will have received an annual statement by now, but only 37% recognise that they have done so. The statements appear to be poorly labelled, difficult to understand and do not stand out from ordinary energy bills.”

Tags: end, price comparison service, industry group, consumer policy, new energy, energy market

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