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, Tough new rules, energy salesmen, energy regulator ofgem, energy firms

Consumers advised on avoiding winter fuel hikes

With winter well on the way many people may already be getting nervous about the cost of their energy usage, and this is something that particularly concerns certain vulnerable groups such as the elderly or low income families. With many people already struggling with their finances even before having to worry about fuel bills experts have advised those concerned to take steps as early as possible to avoid costly bills.

It is advisable for those that are worried that their bills may shoot up too high over the winter period to look at other options available to them before winter sets it, and for many this may be a case of looking for a cheaper provider in the area. The cost of energy usage can vary from one provider to another so it can be well worth taking the time to look at other options and providers.

Consumers are easily able to compare the prices on offer from a wide range of energy suppliers that service their areas by going online, and a number of comparison sites are available that will make the process easier and faster. By simply typing in some details about their property and usage habits consumers can quickly find out which supplier is likely to be the cheapest, and can then easily switch and start saving money.

One consumer stated: “I was with the same energy firm for years and years, and slowly but surely I could see my energy bills getting higher and higher. It came to the point where I was paying a fortune for my energy, and I was too nervous to use the heating and hot water even in winter. However, I finally took the plunge, went online, and switched suppliers, and over the past couple of years by energy bills have been far more reasonable and affordable.”

Tags: energy suppliers, energy usage, energy, usage, energy bills, ventilating, fuel, cheaper provider

Energy price increases described as depressing

Over recent years there has been a lot of controversy over the amount that customers have been charged for their energy usage in the UK, and whilst prices have gone up and down the UK’s major energy suppliers have been accused of being quick to increase prices when the cost of wholesale energy goes up but being very slow to apply changes when the costs go down.

One comparison site, confused.com, has recently stated that the price of energy usage looks as though it is set to increase again, and has described this as ‘depressing’. One official from the company said that the end of cheap energy rates was coming from some providers, and this would make for depressing news for households, many of which are already struggling with their finances.

Energy analyst, Lisa Greenfield, said that companies such as E.On and EDF Energy looked set to end cheap rate offers, and on top of this it looked as thought the cost of wholesale energy was set to increase again. This, she said, all pointed towards energy prices in the UK increasing, and would come as bad news for those that were already on the financial edge. The move could once again send many households into fuel poverty, where 10 percent of more of their household income goes on energy costs.

Greenfield did suggest that those looking to avoid having to pay more on their gas and electricity bills, at least for the foreseeable future, could go online and compare energy prices from a range of other suppliers. She said that it could be worth consumers trying to find a cheap, fixed deal with energy suppliers before the deals were withdrawn, as they could then lock in a lower price for a set period of time to save money on their monthly gas and electric bills.

Tags: energy suppliers, energy costs, energy rates, compare energy prices, energy

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 providers, energy, energy suppliers, ofgem, energy regulator

Households struggling with winter fuel bills

According to recent reports there are now many households that are struggling with winter fuel bills as a result of very cold weather coupled with lack of price cuts from energy suppliers. The high energy bills that some households are having to try and cope with will add further strain to the already difficult financial situations of many people.

The average amount that households are expected to pay for the fuel that they used over the winter period is £532.70, and this takes it above the previous record of £475, reflecting an increase of over £50. Many have been keeping the heating on for longer during the cold weather and this has driven up the cost of their energy bills.

Whilst the spring is officially here and summer is only around the corner there are still warnings of cold weather being released, and this means that consumers are likely to continue using their heating at a time of year when they might usually have stopped using it. Many are also putting the temperature up when using their heating, which can also make a big difference on bills.

The figures relating to winder fuel bills were put together by Energyhelpline.com, which has accused the government of failing to stand up for consumers. Whilst wholesale prices on energy have fallen dramatically by around 60 percent there are concerns that household energy usage costs have only dropped by around 15 percent coming nowhere near reflecting the saving that the energy firms are making.

Officials are also concerned that some people may be receiving inaccurate bills and paying more than they need to because they do not take the time to check the bills. Consumers are also being advised to try and switch providers to get a better deal.

Energyhelpline.com stated: ‘In a privatised energy market, there is little governments can do and they need to be honest and tell people that the only way to reduce their bills is by taking personal responsibility to find the best deals.’ 

Tags: previous record, energy bills, energy, energy suppliers, Heating

Could energy price cuts be on the way?

A consumer campaign group, Consumer Focus, has indicated that there could be energy price cuts on the way as a result of a fall in the cost of wholesale energy. This comes as a result of one of the major energy suppliers in the UK, Scottish and Southern, stating that it could see prices falling by early 2009 as a result of falling wholesale energy prices. With energy prices having rocketed twice this year any fall in prices will be welcomed by businesses and consumers, many of whom are struggling to keep up with bills. Read more

Tags: wholesale energy, Association, energy companies, energy suppliers, trend, energy prices, Wholesale, Business Finance

Why aren’t the energy firms reducing gas and electricity bills?

Over the past year the UK’s energy giants have increased gas and electricity bills twice, leaving many consumers paying a fortune for their energy usage and resulting in an increased level of fuel poverty amongst UK households. Many are concerned that energy companies are very quick to increase energy prices when oil prices and wholesale energy prices rise but when prices fall they are slow to pass on any price cuts. Read more

Tags: electricity costs, energy prices, whilst, cut, environment