‘It’s good news that customers are getting faster broadband speeds. But there is still often a very clear gap between the maximum speeds advertised by suppliers and what people actually receive. People don’t expect to pay for what is advertised as a fast lane service and get a slow lane delivery. 

‘Customers expect products to do what they say on the tin. It is disappointing that broadband suppliers are still using advertising that can mislead customers. We hope that new rules from the regulator coming into effect in April will tackle this and that enforcement action will be taken against any company which isn’t upfront and honest.’

ENDS

Notes to editors:

• The most commonly-experienced problem in the internet market is broadband speed being slower than expected, with 30% of internet users experiencing this.  Source: The Consumer Experience. Research Report, Ofcom, December 2011, p.137.

‘It is welcome that the Government has clarified that customers have a choice over whether they have a smart meter or not. Smart meters have big potential benefits, such as helping customers to cut their energy use and ending estimated bills. But there are also potential concerns which must be addressed. 

‘The energy industry and Government must win over the hearts and minds of customers if they can opt-out of having a smart meter.¹ This clarification should be a wake-up call for suppliers to genuinely put customers at the heart of their rollout plans, if they are to succeed. People need to know that the concerns they have, for example over data-privacy, are addressed, so the benefits are seen as valuable enough to make this change. 

‘It is important that customers with concerns should be able to choose to have a smart meter and access the benefits that come with it, but have options to control what data they share. Consumers will also need to know if they will have to pay more to have a traditional meter as is the case in other countries.’

ENDS 

Notes to editors: 

• DECC has confirmed that energy suppliers will continue be required to rollout meters by 2019. But they won’t be able to require customers to accept installation of a smart meter.

Making sure homes are properly insulated and have decent heating can make a big difference to reducing energy bills and keeping warm and well.

Fuel poverty is on the up in the UK with almost seven million households estimated to spend more than 10 per cent of their income on fuel. Did you know that Warm Front is the only Government-funded scheme to tackle fuel poverty and improve energy efficiency in the poorest households in England? But the scheme is set for an underspend of up to £30 million this year. Older people, families and people with long-term health problems are the ones who will miss out on much-needed help. We’ve joined forces with National Energy Action to encourage anyone who thinks they may be eligible for Warm Front to put in a claim.

The scheme means you can have up to £3,500 of work done on your home to get it insulated and get central heating – £6,000 where oil central heating and other alternative technologies are needed.

Last year the scheme was so popular it was over-subscribed but this year the numbers applying are down dramatically. By the end of December 2010, 139,000 people had applied for help under the scheme – compared to just 40,000 at the end of 2011.

So what’s stopping people from applying for Warm Front? Part of the explanation for such a dramatic reduction in applications is that the total money for scheme was cut by over two thirds – from £366 million in 2010 to £143 million this year. Some people seem to think the scheme had been completely scrapped. This was reinforced by the Government making it harder to be eligible for the scheme. So disabled people getting Disability Living Allowance or families with older children on low incomes, for example, were excluded this year. But another major factor has been the weather – it has been much milder and that has kept demand down.

Eligible consumers
The group who are eligible for Warm Front are those who are on income-related benefits who automatically get a Cold Weather Payment when it’s cold for seven days or more. To find out more look on Directgov. People can apply for the scheme online, by post, or by phone on 0800 316 6004 (or textphone 0800 072 0156), Monday to Friday 8am to 6pm and Saturday 9am to 5pm. Apply quickly before the money is lost and you lose out!

• Energy news
• Post news
• What consumers think of online public services
• Downsides to digital
• What’s new from Consumer Focus – our latest research
• Behaviour change and CSR conference

The Government has yet to announce its decisions regarding the reform of the consumer landscape, including the future of Consumer Focus. In the meantime, we’re still developing our workplan for 2012/13. Your views are important to us to help us concentrate on those areas where we can make the most positive impact for consumers. We are grateful to everyone who takes the time to share those views with us by 1 March.

Don’t forget, if you want to keep up to date with all our news as it happens you can follow us on Twitter.

Energy news

• Consumer Focus has identified a £30 million underspend on the Warm Front scheme. A lack of marketing and tightening of eligibility criteria mean that the poorest consumers are not applying for the scheme which gives heating and insulation improvements to households on low incomes. We are urging people on income-related benefits and living in homes that are poorly insulated or do not have a working central heating system to apply for the scheme by calling the helpline on 0800 316 6004 or by visiting the Directgov website  
• All of the ‘big six’ energy companies have put their prices down in response to falling wholesale prices. We hope this shows suppliers are waking up to the need for customers to see rapid cuts when wholesale prices are low and that this trend will continue if wholesale costs carry on falling
• The Government has decided to appeal to the supreme court following the ruling that its consultation on cuts to the feed-in tariff (FiT) was unlawful. The Government will no longer be able to cut the higher rate (43.3p per kilowatt-hour) paid to FiT consumers from 12 December, as long as their solar panels are installed and registered by 3 March. We urge people to calculate the potential benefits to them on the basis of the lower rate (21p per kilowatt-hour), so they don’t end up with a lower return than they expected if the Government’s appeal is successful. Read the Keeping FiT blog
• What do energy consumers face in 2012? Will energy prices rises or fall? How many consumers will be using smart meters by the end of 2012? We predict a greater focus on new energy-efficient products and services, but will vulnerable consumers be left in the cold? Read more about our energy predictions for 2012 on our blog
• Big Energy Week last week saw consumer organisations, energy suppliers, switching sites and government agencies working together to give advice to consumers struggling with their energy bills. According to Government figures one in four homes don’t have enough loft or cavity wall insulation. Our research shows that millions of people would benefit from insulation and switching tariff or payment type. We want consumers to contact their suppliers to find out more.
  Useful phone numbers:
  British Gas – 0800 980 8177
  E.ON – 0800 479 0162
  EDF Energy – 0800 096 9966
  npower – 0800 02 22 20
  ScottishPower – 0845 2 700 700
  SSE – 0800 072 7201
  Home Heat Helpline – 0800 336699
  Energy Saving Trust – 0800 512 012

Post news

Edward Davey, Minister for Employment Relations, Consumer and Postal Affairs, recently announced that Royal Mail and the Post Office have agreed a commercial arrangement. This is good news for consumers as it gives security to the Post Office network over the next 10 years.

We hope the Post Office will broaden it range of services and provide them in the most convenient way for consumers. Mail plays an important role in Post Office revenue and we believe that banking and government services are its future.

Our research:
Counter measures: Delivering access to current accounts for all at the post office
Opportunity knocks: Providing alternative banking solutions for low-income consumers at the Post Office

Online public services – do they measure up?

What really matters to consumers when it comes to online public services? You can now fill in your tax return online, find out information about local government services, apply for a passport, and in some trial areas you can even access your health records online. But with the Government moving towards ‘digital by default’ for public services, do these online services meet consumers’ needs? 

Our new interactive website and report ask the question: what do consumers want, need and expect from online public services?

The internet and new technologies have made powerful new approaches to consumer empowerment possible. Most people would probably say that these new technologies have brought significant benefits. However, there can be downsides too – we are investigating and would like as many people as possible to have their say on the issues.

We’ve put a draft research project on our website to give you an introduction to the situation.

Filling the gaps
We found that the Government’s energy efficiency assessment method will never recommend cavity wall insulation for homes built after 1983, despite up to 2.3 million homes being built after this date with unfilled cavity walls.

We think that consumers seeking Green Deal advice should be able to consider the option of cavity wall insulation. Consumers may wrongly assume that their cavity walls are insulated. If insulation is never recommended, consumers will never be able to use Green Deal finance to pay for the work.

In this report we ask the Government to take swift action to make changes to the way energy efficiency assessments treat cavity wall insulation. These changes could help households cut their heating bills and save up to 600,000 tonnes of carbon each year.

The NSMC behaviour change and CSR academy and conference

26–29 March
15Hatfields London

This event is being held in direct response to a growing awareness of the role of business in influencing society’s behaviour, and companies’ focus on the impact of their business on society.  

The four-day event will examine the role social marketing has in helping businesses to improve the benefits they offer to their shareholders and to society.

26–27 March: The academy, accredited by the Chartered Institute of Marketing, will train delegates in the process of planning, implementing and evaluating social marketing programmes.

28–29 March: The conference has attracted speakers from around the world. They will discuss the role of business in influencing society’s behaviour and how social marketing can be used to increase the effectiveness of corporate social responsibility (CSR) programmes.

For more information visit The NSMC’s website.

‘This is a once in a generation opportunity to reform our financial regulation and it is vital we get it right. Consumers have been losing out for too long. It is important that the Bill ensures that all of the regulatory bodies are clear on their responsibilities and powers from the offset. 

‘Particularly welcome steps include early interventions on banning products. This should help stop many of the issues which have been endemic in this market in recent years. Transferring responsibility for credit over to the FCA is also a good common sense move.

‘The clarity of the FCA objectives on promoting competition is significant. Competition is not an end in itself, it must deliver benefits for consumers. The detail in the Bill gives some hope that this has been recognised and the new regime will work towards promoting effective competition to make sure consumers get a better deal.’

Mae’r cynllun Warm Front, sy’n cynnig gwelliannau o ran gwresogi ac inswleiddio i aelwydydd sy’n byw ar incwm isel, yn disgwyl gweld hyd at un rhan o bump o’r £143 miliwn o  gyllid ar gyfer y flwyddyn hon yn peidio â chael ei hawlio.¹ Gallai’r arian hwn helpu hyd at 16,000 o aelwydydd, sy’n ei chael hi’n anodd fforddio talu eu biliau ynni, i arbed £650 y flwyddyn ar eu costau, o bosibl. 

Mae’r cynllun Warm Front wedi gweld gostyngiad sylweddol yn nifer y ceisiadau am gymorth eleni. Rhwng mis Ebrill a mis Rhagfyr 2011, cyflwynodd llai na 40,000 o bobl geisiadau am grant y Warm Front, o’i gymharu â mwy na 130,000 o geisiadau yn ystod yr un cyfnod yn 2010. Roedd mwy o alw am y cynllun nag y gellid ei fodloni yn 2010, ond torrwyd bron i ddwy ran o dair o’r cyllid eleni.² 

Mae’n debygol fod cyfuniad o ffactorau wedi arwain at y gostyngiad hwn yn nifer y ceisiadau. Tynhawyd y meini prawf, ac ni hysbysebwyd y cynllun gan y Llywodraeth gan y disgwyliwyd y byddai’r galw yn uwch na’r cyflenwad eto. Gallai’r tywydd mwynach yn ystod y gaeaf olygu nad oes cymaint o bobl wedi cael eu denu gan y cynllun, ond mae hefyd yn ymddangos bod nifer y sefydliadau cynghori sy’n cyfeirio pobl at y cynllun wedi gostwng yn sylweddol. Mae’n debygol iddynt fod yn pryderu na fyddai pobl yn cael y grant yn y diwedd, o ystyried y cyfyngiadau ar y meini prawf a’r ffaith fod y gronfa gyllido gryn dipyn yn llai.    

Mae Llais Defnyddwyr a Gweithredu Ynni Cenedlaethol yn annog pobl i gyflwyno cais yn awr cyn i’r cyllid ar gyfer y flwyddyn hon ddod i ben ar 31 Mawrth. Mae pobl sy’n derbyn budd-daliadau penodol sy’n seiliedig ar incwm ac sy’n byw mewn cartrefi sydd wedi eu hinswleiddio’n wael, neu nad oes ganddynt system gwres canolog sy’n gweithio, yn gymwys i gael grantiau’r Warm Front. Caiff unrhyw un sy’n gymwys i dderbyn Taliadau Tywydd Oer hawlio’r grant, fel pobl hŷn sy’n derbyn credyd pensiwn; teuluoedd sydd â phlentyn dan bum mlwydd oed ac sy’n derbyn Cymhorthdal Incwm, Lwfans Cyflogaeth a Chymorth yn Seiliedig ar Incwm neu Lwfans Ceisio Gwaith yn Seiliedig ar Incwm; a phobl sydd â phremiymau anabledd cyfradd uwch.   

Meddai Audrey Gallacher, Cyfarwyddwr Ynni yn Llais Defnyddwyr:

‘Byddai prisiau ynni uchel wedi cael effaith arbennig o andwyol ar y pensiynwyr a’r teuluoedd tlotaf. Mae llawer ohonynt yn byw mewn tai oer, a allai beryglu eu hiechyd. Mae’n siomedig iawn ei bod yn debygol y bydd pobl y mae angen cymorth y cynllun Warm Front arnynt i wneud eu cartrefi’n gynhesach ac yn rhatach i’w cynhesu, yn colli’r cyfle i gael y cymorth hwnnw. Rydym yn annog unrhyw un, sy’n meddwl y gallai fod yn gymwys, i gyflwyno cais. Mae’r cymorth hwn ar gael yn rhad ac am ddim, ac fe all wneud gwahaniaeth mawr o ran eich helpu i fforddio eich biliau ynni a chadw’n gynnes a theimlo’n dda.’  

Meddai Jenny Saunders, Prif Weithredwr Gweithredu Ynni Cenedlaethol:

‘Y ffordd orau o’ch amddiffyn eich hun rhag cael biliau ynni uchel yw sicrhau bod eich cartref yn defnyddio ynni’n effeithlon trwy inswleiddio’r atig a’r waliau. Mae’r Cynllun Warm Front ar gael i helpu os ydych yn byw mewn adeilad nad yw wedi ei inswleiddio ac yn derbyn budd-daliadau penodol. Fe all hefyd ddarparu bwyler newydd os yw eich un chi wedi torri. Cysylltwch cyn gynted â phosibl er mwyn gallu canfod beth allai fod ar gael yn rhad ac am ddim cyn i’r cyllid ddod i ben.’ 

Mae manylion llawn am bwy a gaiff ofyn am gymorth dan y cynllun Warm Front, a sut i gyflwyno cais, ar gael ar wefan Directgov – www.direct.gov.uk/warmfront. Gall pobl gyflwyno cais ar gyfer y cynllun ar-lein, trwy’r post, neu dros y ffôn ar 0800 316 6004 (neu ffôn testun 0800 072 0156), o ddydd Llun i ddydd Gwener, rhwng 8.00am a 6.00pm, ac ar ddydd Sadwrn rhwng 9.00am a 5.00pm.

Ffeil ffeithiau: 

• Erbyn hyn, mae’n debygol fod bron i 7 miliwn o aelwydydd yn byw mewn tlodi tanwydd yn y DU (amcangyfrifon ar ran Llais Defnyddwyr trwy ddefnyddio gwaith ymchwil y Ganolfan Ynni Cynaliadwy). Mae’r ffigur hwn wedi codi o 5.5 miliwn yn 2009 (ffigurau swyddogol diweddaraf y Llywodraeth)
   
• £1,289 yw’r bil ynni cyfartalog ar hyn o bryd, a bydd yn gostwng i £1,258 ar ôl i’r holl ostyngiadau mewn prisiau a gyhoeddwyd yn ddiweddar ddod i rym 

DIWEDD

Nodiadau i olygyddion: 

• Warm Front yw’r unig gynllun a ariennir gan Lywodraeth y DU i fynd i’r afael â thlodi tanwydd a gwella effeithlonrwydd ynni. Mae’r grant Warm Front ar gael yn Lloegr yn unig.   

1. Mae cyfanswm y gyllideb, sef £143 miliwn, yn cynnwys £110 miliwn a ddyrannwyd i’r cynllun Warm Front, a gweithgareddau cysylltiedig trwy Adolygiad o Wariant 2010. O hyn, neilltuwyd £108 miliwn yn uniongyrchol i’r cynllun Warm Front. Yn ogystal, dyrannodd yr Adran Ynni a Newid Hinsawdd £25 miliwn i helpu i gwblhau gwaith a oedd heb ei orffen o 2010/11, ac mae £10 miliwn ychwanegol wedi ei ddyrannu i’r cynllun Warm Front yn 2011/12 gan yr Adran Iechyd.
    
2. Roedd £366 miliwn o gyllid ar gael yn 2010-2011, sef bron i deirgwaith lefel y cyllid ar gyfer y flwyddyn 2011-12.  

Dadansoddiad o geisiadau Warm Front fesul rhanbarth:  

‘Consumers want certainty on what to expect when they sign up for solar panels, or any other energy efficiency programme.  An ongoing legal battle would be likely to undermine consumer confidence so we’d urge the Government to draw a line under this judgement to prevent any further uncertainty.  

‘The Government needs to balance incentivising consumers to take up renewable energy with protecting bill-payers from the rising costs of this scheme. But the speed of the December deadline would unfairly leave some consumers getting a lower return than they bargained for.  

‘If consumers choose to install solar panels before 3 March they may qualify for the higher tariff-rate. But we would urge people to calculate the potential benefits to them on the basis of the lower rate proposed by Government, so they don’t end up with a lower return than they expected. It is worth being aware that it takes four weeks on average for installation and registration, and paperwork delays and bad weather could also add on extra time.’ 

ENDS 

Notes to editors:

1. A recent Consumer Focus report shows a high overall level of satisfaction among consumers who have taken up the Feed-In Tariff scheme. However it also shows some concerns about misleading sales practices, a lack of adequate information from some solar panel installers, and difficulties with the registration and payment process for the tariff itself. Please see the report - ‘Keeping FiT’- and the press release for more detail

The Warm Front scheme – which offers heating and insulation improvements to households living on low incomes – is expected to see up to a fifth of its £143 million worth of funding for this year going unclaimed.¹ This money could help up to 16,000 households struggling to afford their energy bills to cut their costs by a potential £650 per year.

Warm Front has seen a dramatic decline in applications for help this year. In April to December 2011 less than 40,000 people applied for a Warm Front grant compared to over 130,000 applications in the same period in 2010. The scheme was oversubscribed in 2010 but the funding was cut by almost two thirds this year.² 

A combination of factors are likely to have led to this fall in applications. The eligibility criteria were made stricter and the Government did not advertise the scheme as it was anticipated demand would again exceed supply. The milder winter weather may mean not as many people have been driven towards the scheme, but it is also seems that the number of advice organisations referring people to the scheme must have dropped significantly. They are likely to have been concerned people would end up not getting the grant given eligibility restrictions and the much smaller funding pot. 

Consumer Focus and National Energy Action are urging people to put in a claim now before the funding for this year ends on 31 March. People on certain income-related benefits and living in homes that are poorly insulated or do not have a working central heating system are eligible for Warm Front grants. Anyone who is eligible for Cold Weather Payments can claim the grant such as: older people receiving pension credit; families with a child under five and in receipt of Income Support, Income Related Employment and Support Allowance or income based Jobseeker’s Allowance; and people with higher rate disability premiums. 

Audrey Gallacher, Director of Energy at Consumer Focus, said:

‘The poorest pensioners and families will have been hit particularly hard by high energy prices. Many are living in cold homes, which could put their health at risk. It is very disappointing that people who need Warm Front help to make their homes warmer and cheaper to heat are likely to miss out. We’d urge anyone who thinks they may be eligible to put in a claim. This help is free and can make a big difference in affording your energy bills and keeping warm and well.’

Jenny Saunders, Chief Executive of National Energy Action, said:

‘The best way to protect yourself from high energy bills is by making your home more energy efficient through insulating the loft and walls. The Warm Front Scheme is there to help if you are living in an un-insulated property and receive certain benefits. It can also provide a new boiler if yours is broken down. Please come forward and find out what might be available free of charge as soon as possible before the funding is withdrawn.’ 

Full details of who can claim help under the Warm Front scheme and how to apply are available on Directgov – www.direct.gov.uk/warmfront People can apply for the scheme online, by post, or by phone on 0800 316 6004 (or textphone 0800 072 0156),Monday to Friday 8.00 am to 6.00 pm and Saturday 9.00 am to 5.00 pm.

Factfile: 

• There are now likely to be almost 7 million households living in fuel poverty in the UK (Estimates on behalf of Consumer Focus using Centre for Sustainable Energy research). This is up from 5.5 million in 2009 (the latest official Government figures)
   
• The average energy bill is now £1,289, which will fall to £1,258 after all the recent price cuts announced come into effect 

ENDS

 Notes to editors: 

• Warm Front is the only UK Government funded scheme to tackle fuel poverty and improve energy efficiency. The Warm Front Grant applies in England only.  

1. The total budget of £143m consists of £110m allocated to Warm Front and associated activities secured through the Spending Review 2010. Of this, £108m was directly allocated to Warm Front. In addition DECC allocated £25m to support the completion of outstanding work from 2010/11 with a further £10m allocated to Warm Front in 2011/12 from the Department of Health.
    
2. Funding for the Warm Front scheme in 2010-11 was £366m – almost three times the level of funding for this year 2011-12.  

Breakdown of regional Warm Front applications:  

‘We welcome this announcement by Edward Davey –  a ten year deal is good news.  An agreement of this duration is important to support the long term sustainability of the network and the viability of Post Office Limited after it splits off from the Royal Mail Group. Mail accounts for one third of post office revenues and therefore is a key part of the jigsaw in maintaining a strong and healthy post office delivering those services that consumers expect. This deal helps provide firm foundations for the post office network’s future. 

‘Over the next few years there is the opportunity to build on this arrangement by ensuring that post offices deliver the widest range of services in the most convenient ways, while at the same time broadening the range of services available from the network. The fact is that the post office is changing – banking and Government services are its future.  

‘The coming years will see major changes to the post office branch network – these changes need to work for consumers and ensure the network can offer and benefit from the new product areas.  If the range of products, the quality of service and the ease of access can be delivered then post offices will continue to play a unique and vital role for consumers, businesses and the wider society.’

Today sees the kick-off of the Big Energy Week (16-21 January 2012), which will see help and advice events held up and down the country. The campaign is being co-ordinated by Citizens Advice and is supported by Consumer Focus, Which?, Energy UK, energy companies, charities, accredited switching sites, Ofgem and the Government.

Key messages -

The goal of the week is to help people spend less on heating and powering their home, helping people save money on their bills by encouraging them to: 

• Contact their supplier to check they are on the best tariff and payment method
• Visit an accredited switching website to see if they could get your energy cheaper elsewhere
• Insulate the walls and loft of their home, checking to see if they are eligible with their suppliers for free or discounted insulation
• Check they are not missing out on any benefits or tax credits that could up their income
• Use less energy through simple things like turning off lights and switching appliances off at the wall
• To contact their energy supplier if they are unable to pay their bills immediately
• Heating oil or liquid petroleum gas customers can also save money by shopping around to compare prices and buying in bulk with their neighbours or through an oil club

Over 100 local events will be held across Britain, from advice stands in shopping centres, to online switching help in Citizens Advice Bureaux.

Details about local events can be found here Citizens Advice and Which? will also be hosting a live webchat to answer questions on energy bills, switching and saving energy tomorrow between 12.00 and 2.00pm

Fact file

Big Energy Week survey main findings:

• 43% of people are worried they can’t afford their next fuel bill.
• One in two say energy bills will put a strain on their finances this year.
• 71% of people who said their energy bills would put a strain on their finances this year also said they were worried they won’t be able to pay their next fuel bill.
• Over half of 45-54 year olds said fuel bills will put pressure on the purse strings this year.
• Parents with children under 15 living at home are most worried about energy bills putting a strain on their finances (56%).
• having the heating on less topped the list of what people are doing to cut energy bills (53%)
• one in three people don’t know that energy companies are offering help to insulate their home, rising to 46% in London.

For more information, please contact James Court via email, James.Court@consumerfocus.org.uk or

telephone on 020 7799 7932/ 07771 345 973.
Helpful Links

Big Energy Week Website - www.bigenergyweek.org.uk

Tariff and payment methods  
Consumer Focus  - provide a leaflet on switching energy suppliers and details of accredited energy switching sites

Dealing with debt-
Consumer Focus – http://www.consumerfocus.org.uk/get-advice/energy/plug-the-debt

Citizens Advice – http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew.htm#National Debt Helpline – www.nationaldebtline.co.uk

Financial help
Citizens Advice – offer a helpful guide

Save energy – save money
Energy Saving Trust on 0800 512 012.
Home Heat Helpline on 0800 336699
The Consumer Focus grant and free energy assistance help-finder:
www.consumerfocus.org.uk/get-advice/energy/help-finder     

Stay in touch…
any feedback, ideas or comments please do email consumer community
If you have received this email in error or wish to be removed from the Consumer Community mailing list please email us.

If you wish to be added or removed from the Consumer community mailing list please email us. 

See previous editions.

It’s Big Energy Week, so it seemed worth looking ahead to see what consumers face in what could be a big energy year. In 2011 you probably saw your energy bills go up. The average energy bill rose over 21 per cent[1], and the number of customers entering new debt repayment arrangements rose by 20 per cent and 25 per cent for gas and electricity customers respectively[2].

Some media have focused on green taxes as the driver of rising bills, but the true driver has been the international price of fossil fuels. Prices should fall as gas and electricity prices have hit a 20 month low, and we have seen some price cuts this week, but the tough economic climate will continue and energy prices are expected to continue to rise in the long-term. For these reasons we do not expect to see consumer and political concern about energy bills diminish, and instead expect to see a greater focus on new energy products and services, complete with marketing efforts to make them attractive to consumers.

Our biggest concern is that in this rush to attract the ‘able-to-pay’ to new energy efficiency services, Government will leave behind the most vulnerable consumers as they cut public funding for fuel poverty programmes in England and support for basic measures in social housing.

Here are our 10 predictions for what 2012 will bring for energy consumers:

1. Reduce use We will continue to see consumers turning down their thermostats and wrapping up to take control of their energy bills[3]
2. Shift use We estimate 20 per cent of customers already use basic time-of-use tariffs such as Economy 7, but expect suppliers to pilot many more options in 2012 to encourage shifting use to different times or to reduce use
3. Smart use? By the end of 2012 suppliers aim to have at least two million smart meters installed with the majority of customers having an energy monitor provided with their meter – but it is not yet clear how consumers will respond
4. Social housing left behind 2012 could be the last year for social housing to benefit from support for basic energy efficiency measures[4], but homes will remain unimproved where local authorities cannot provide matched funding or where improvements are prohibited by planning law or prevented by the presence of existing measures
5. Government shrink help for the most vulnerable After 30 years, 2012 is the last year of public-funded support for fuel poverty programmes in England (they will continue in Scotland and Wales). Campaigners will increase the pressure to raise and spend funds fairly
6. ‘Able to pay’ are encouraged to pay In advance of the Green Deal we will see more and more companies testing ways to make energy efficiency aspirational, going beyond cost and carbon to quality and comfort as they seek to identify viable commercial offers
7. Energy efficiency seen as an investment A number of developments in 2011 suggest that energy efficiency will be a greater factor in property investment decisions: the ban from 2018 on renting out EPC Band F and G properties; improvements to the EPC content, format, and its provision to clients; and the Financial Services Authority recommendation in its Mortgage Market Review that banks scrutinise household expenditure and bills in their lending tests
8. Renewable heat emerges in off-gas areas While the change in the feed-in tariff may dent confidence, we expect to see more take-up of renewable heating systems in off-gas areas, particularly in Scotland, as running costs get competitive regardless of subsidy
9. A sense of community Consumers are more likely to be attracted by community scale renewable schemes following changes to the feed-in tariff scheme, while groups of consumers may form to use their buying power to negotiate better energy tariffs
10. A slow start to the Green Deal Green Deal products will come online towards the end of the year, but we only expect a gradual take-up starting with typical early adopters, particularly those who are more energy conscious. A slow start is not a bad thing if consumers are satisfied and share their positive experiences with others

Daw’r alwad hon yn ystod yr Wythnos Ynni Fawr, gan fod miliynau o bobl yn peidio â manteisio ar ddulliau hawdd i arbed llawer o arian, heb fynd i fawr o gostau os o gwbl. Gallai defnyddwyr arbed £120 ar gyfartaledd oddi ar eu bil bob blwyddyn trwy fanteisio ar gynnig cyflenwyr ynni i inswleiddio’r atig a waliau ceudod am ddim neu am bris rhatach, a gallent arbed tua £100 arall bob blwyddyn dim ond trwy newid i dalu trwy ddebyd uniongyrchol.¹

Mae ffigurau diweddaraf y Llywodraeth yn dangos nad yw 9.6 miliwn o gartrefi wedi inswleiddio’r atig yn ddigonol, ac nad yw 7.8 miliwn o gartrefi wedi inswleiddio eu waliau ceudod yn ddigonol – sef un o bob pedwar cartref.²  Mae pob un o’r prif gyflenwyr yn cynnig inswleiddio atig a waliau ceudod eu cwsmeriaid am ddim neu am bris rhad, ond nid oes digon o bobl yn bachu ar y cyfle. Mae 100,000 o deuluoedd yn manteisio ar y bargeinion hyn bob mis ar hyn o bryd, ond fe allai tua 200,000 o deuluoedd fod yn gwneud hynny. 

Mae gwaith ymchwil newydd gan Lais Defnyddwyr³ hefyd yn dangos y gallai miliynau o bobl elwa ar inswleiddio a newid eu tariff neu eu dull o dalu, gan nad yw’r mwyafrif o ddefnyddwyr yn teimlo bod eu cartref yn defnyddio ynni mor effeithlon ag y gallai neu nad ydynt yn cael y fargen orau. Dyma rai o ganfyddiadau allweddol gwaith ymchwil Llais Defnyddwyr:

• Nid yw dau o bob tri defnyddiwr yn gwbl hyderus fod eu cartref yn defnyddio ynni mor effeithlon ag y gallai. Ar y llaw arall, nid yw saith o bob 10 o’r defnyddwyr hyn yn bwriadu gwneud dim i wella effeithlonrwydd ynni eu cartrefi yn ystod y flwyddyn nesaf
   
• Nid yw bron i hanner y defnyddwyr (47%) yn gwybod pa mor drwchus yw’r deunydd inswleiddio yn yr atig – felly nid ydynt yn gwybod a ddylid ei wella
   
• Mae dros un o bob tri (35%) heb fod yn sylweddoli bod cyflenwyr yn cynnig inswleiddio cartrefi am ddim neu am bris rhatach, y gall unrhyw un fanteisio ar y cynnig hwn, ac y telir amdano o filiau defnyddwyr
   
• Mae dau o bob tri defnyddiwr yn ystyried ei bod yn fuddsoddiad da i dalu un ffi o £200 am inswleiddio’u cartrefi gan y bydd yn arbed o leiaf £100 oddi ar eu bil bob blwyddyn
   
• Dim ond un o bob pump o bobl sy’n gwbl hyderus eu bod yn cael y fargen orau a gynigir gan eu cyflenwyr ynni 

Meddai Mike O’Connor, Prif Weithredwr Llais Defnyddwyr:

‘Mae miliynau o ddefnyddwyr yn ei chael hi’n anodd fforddio biliau ynni drutach, ac mae pob ceiniog y gallant ei harbed yn bwysig. Ac eto mae llawer o bobl yn talu mwy nag y mae angen iddynt oherwydd bod eu cartrefi’n gollwng gwres ac nad ydynt yn cael y fargen rataf. Un alwad ffôn i’w cwmni ynni sydd ei hangen, a gallai nifer o gwsmeriaid arbed llawer o arian ar eu biliau. 

‘Gallech dorri eich costau trwy newid i dariff neu ddull talu rhatach. Mae llawer o bobl hefyd heb fod yn sylweddoli bod cwmnïau ynni yn cynnig inswleiddio cartrefi am ddim neu am brisiau rhatach – ac mae’n wastraff llwyr peidio â manteisio ar y cynigion hyn a allai arbed £100 a mwy oddi ar eich bil bob blwyddyn.’

Meddai Christine McGourty, un o Gyfarwyddwyr Energy UK:

‘Mae cwmnïau ynni’n cynnig amrywiaeth eang o gymorth a chyngor ac rydym yn annog pobl i gysylltu â nhw a gwneud yn siŵr nad ydynt yn colli cyfle. Trwy fanteisio ar y cynigion i gael inswleiddio am ddim neu am bris rhatach, gallwch helpu i gadw eich cartref yn gynnes am lai o arian. Mae’r Wythnos Ynni Fawr yn gyfle gwych i weld pa gamau syml y gallwch eu cymryd er mwyn gwneud gwahaniaeth mawr. Gwyddom fod cyllidebau teuluoedd dan straen, ond mae’r cwmnïau’n gweithio’n galed i roi’r cymorth angenrheidiol i gwsmeriaid, felly cysylltwch â nhw.’

Mae’r chwe phrif gwmni ynni wedi ymrwymo i helpu cwsmeriaid i ddod i wybod mwy am inswleiddio’u cartrefi a chanfod a ydynt yn cael y fargen orau sydd ar gael gan eu cyflenwyr.⁴ Ffoniwch eich cyflenwr i ofyn am ffyrdd o arbed arian, a dylent roi gwybod i chi am eu cynigion i inswleiddio cartrefi am ddim neu am bris gostyngol, y bargeinion rhatach sydd ar gael, neu’r ddau. Mae hwn yn gam calonogol gan y dywedodd bron i saith o bob 10 o bobl a gymerodd ran yn arolwg Llais Defnyddwyr y byddent yn debygol o newid tariff neu ddull talu pe byddai eu cyflenwr yn dweud wrthynt y gallent gael bargen ratach. 

Gall cwsmeriaid ynni siarad yn uniongyrchol â’u cwmni ynni ynglŷn â’r cynigion i gael inswleiddio am ddim neu am bris rhatach, a’r camau effeithlonrwydd ynni eraill a allai fod ar gael iddynt o dan y cynllun CERT, ac i ddarganfod a allent fod ar dariff neu ddull talu rhatach. Dyma’r manylion cyswllt ar gyfer pob cyflenwr.⁵ 

Nwy Prydain – 0800 980 8177
E.ON – 0800 479 0162
EDF Energy – 0800 096 9966
npower – 0800 02 22 20
ScottishPower – 0845 2 700 700
SSE – 0800 072 7201 

Gall pobl hefyd gysylltu â’r Llinell Gymorth Cartrefi Cynnes ar 0800 336699 neu’r Ymddiriedolaeth Arbed Ynni ar 0800 512 012 i gael cyngor ar arbed ynni a gwybodaeth am y grantiau a’r cynlluniau sydd ar gael i’ch helpu i arbed arian a gwneud eich cartref yn gynhesach. 

Ffeil ffeithiau:

• Mae gwaith ymchwil Llais Defnyddwyr yn dangos bod un o bob chwech o bobl yn bwriadu cynhesu hanner yr ystafelloedd yn eu tai, neu lai, y gaeaf hwn. Bydd un o bob 20 o bobl yn cynhesu un neu ddwy o ystafelloedd yn unig, gan gynyddu i un o bob 10 o’r bobl yn y grŵp cymdeithasol tlotaf
   
• Mae gwaith ymchwil gan Gyngor ar Bopeth yn dangos bod 43% o bobl yn pryderu na allant fforddio eu bil tanwydd nesaf, a bod un o bob dau o bobl yn dweud y bydd biliau ynni yn rhoi eu cyllidebau dan straen eleni 

DIWEDD

Nodiadau i olygyddion:

Yn ystod yr Wythnos Ynni Fawr, 16 – 21 Ionawr 2012, mae elusennau, grwpiau defnyddwyr, cwmnïau ynni, gwefannau newid cyflenwyr, Ofgem a’r Llywodraeth yn gweithio gyda’i gilydd i roi cyngor ymarferol i bobl ym mhob cwr o’r wlad i’w cynorthwyo i wario llai ar ynni a gwres ar gyfer eu cartrefi. Trefnir digwyddiadau cynghori mewn lleoliadau ledled y wlad. Ewch i www.bigenergyweek.org.uk neu codwch daflen yn eich Canolfan Cyngor ar Bopeth i gael gwybod mwy am yr hyn sy’n digwydd yn eich ardal leol.

1. Gall pobl arbed llawer o arian trwy newid i ddull talu gwahanol – gallech arbed y swm mwyaf o arian trwy ddefnyddio Debyd Uniongyrchol neu symud i dariff ar-lein neu danwydd deuol. Mae debyd uniongyrchol misol £100 yn rhatach y flwyddyn ar gyfartaledd na thalu ag arian parod neu siec.
     
2. Mae ffigurau’r Adran Ynni a Newid Hinsawdd yn dangos mai 13.7 miliwn o gartrefi (59% o’r rhai hynny ag atig) sydd wedi inswleiddio’r atig yn ddigonol, a bod ar 9.5 miliwn (41%) o gartrefi ei angen o hyd. Dengys hefyd mai 11.0 miliwn o gartrefi (59% o’r rhai hynny â waliau ceudod) sydd wedi inswleiddio eu waliau ceudod yn ddigonol, a bod ar 7.6 miliwn (41%) o gartrefi ei angen o hyd. Er mwyn cyflawni’r targedau, mae angen i’r cyflenwyr i gyd gyda’i gilydd anfon gweithwyr proffesiynol i inswleiddio bron ddwywaith y cartrefi bob mis, ar gyfartaledd – gan gynyddu o ychydig dros 100,000 y mis i oddeutu 200,000. Mae’r Llywodraeth yn amcangyfrif y gallai cyflenwyr ynni gynnig gwaith inswleiddio am ddim neu am bris rhatach i hyd at 2 filiwn o gartrefi yn 2012.
     
3. Cynhaliwyd gwaith ymchwil omnibws gan TNS Omnibus ar ran Llais Defnyddwyr trwy gyfweld pobl wyneb yn wyneb. Cynhaliwyd yr arolwg ym mis Tachwedd 2011 gyda 1,166 o oedolion ledled Prydain.
    
4. Mae hyn yn ychwanegol at gyflenwyr ynni yn ysgrifennu at wyth miliwn o gwsmeriaid sy’n talu ag arian parod neu siec bob tri mis i roi cyngor iddynt ynglŷn â sut y gallent arbed arian trwy newid i dalu trwy ddebyd uniongyrchol.
    
5. Nid oes raid i gyflenwyr ynni llai gynnig inswleiddio cartrefi am brisiau rhatach o dan y cynllun CERT. Fodd bynnag, gall cwsmeriaid y cyflenwyr hyn gysylltu â nhw ar y rhifau ffôn isod i weld a ydynt ar y tariff / dull talu gorau. Gall unrhyw un sydd â diddordeb mewn gwybod a allai cyflenwr llai gynnig cyfradd gystadleuol iddynt ddefnyddio gwasanaeth cymharu prisiau achrededig neu siarad yn uniongyrchol â’r cyflenwr.

Co-operative Energy Rhif ffôn: 0800 954 0693
Ebico Rhif ffôn: 0800 458 7689
Ecotricity Rhif ffôn: 0845 555 7100 (domestic customers)
First Utility Rhif ffôn: 0845 215 5000
Good Energy Rhif ffôn: 0845 601 1410
Green Energy Rhif ffôn: 0800 783 8851
Ovo Energy Rhif ffôn: 0800 5999 440
Spark Energy Rhif ffôn: 0845 034 7474
Utilita Rhif ffôn: 0845 450 4357
Utility Warehouse Rhif ffôn: 0844 815 7777 

Manylion cyswllt ar gyfer y wasg:

Llais Defnyddwyr: Emma Adler, 020 7799 8004, y tu allan i oriau swyddfa 07770 433 433
Swyddfa’r wasg Energy UK: Ben Jun-Tai, 020 7104 4169, y tu allan i oriau swyddfa 07983 469 764

Cyngor ar Bopeth: Emma Brennan, 020 7833 7178, y tu allan i oriau swyddfa 0845 099 0107

The call comes during Big Energy Week, as millions of people are missing out on easy ways to make big savings for little or no cost. Taking advantage of free or discounted loft and cavity wall insulation offered by energy suppliers can save consumers an average £120 off their bill every year and switching to direct debit alone could save around a further £100 each year.¹

Updated Government figures show that 9.6 million homes don’t have enough loft insulation and 7.8 million do not have enough cavity wall insulation – that’s one in every four homes.² Every major supplier is offering free or cut price deals for loft and cavity wall insulation, yet not enough people are claiming these deals. Currently 100,000 households are taking up these deals each month when some 200,000 households could be taking advantage of them.

New Consumer Focus research³ also shows that millions of people would benefit from insulation and switching tariff or payment type, as the majority of consumers don’t think their home is as energy efficient as it could be or that they are on the cheapest deal. Key findings of the Consumer Focus research show that:

• Two-thirds of consumers are not fully confident that their home is as energy efficient as it could be. Yet seven out of 10 of these consumers don’t plan to do anything to improve the energy efficiency of their home in the next year
• Almost half (47%) of consumers don’t know how thick the insulation in their loft is – so they don’t know whether it should be improved
• Over a third (35%) are unaware that suppliers offer free or discounted insulation which anyone can claim, and that the scheme is paid for out of customers’ bills.
• Two- thirds of consumers see paying around a £200 one-off fee for home insulation as a good investment as it will save at least £100 off their bill every year
• Only one in five people are fully confident that they are on the best deal that their energy supplier offers

Mike O’Connor, Chief Executive of Consumer Focus, said:

‘Millions of consumers are finding it hard to afford higher energy bills and every penny that can be saved counts. Yet many people are paying more than they need to because their home is leaking heat and they aren’t on the cheapest deal. Yet with one simple call to their energy firm many customers could make big savings on their bill.

 ‘Changing to a cheaper tariff or payment type can cut your costs. Many people also don’t realise that energy companies offer free or discounted insulation –and it’s a waste not to take advantage of these offers which could shave well over £100 off your bill every year.’

 Christine McGourty, Director at Energy UK, said:

‘Energy companies offer a wide range of help and advice and we’re urging people to get in touch with them and make sure they’re not missing out. By taking advantage of the offers of free or subsidised insulation, you can help keep your house warm for less. Big Energy Week is a great opportunity to see what simple steps you can take that could make a big difference. We know household budgets are stretched, but the companies are working hard to provide customers with the help they need, so don’t hesitate to ask.’

 The six major energy firms have made a commitment to help customers find out more about insulating their homes and whether they are on the best deal their supplier offers.⁴ If you call your supplier and ask about ways to save money, now they should alert you to free and discounted insulation deals they offer, the availability of cheaper deals, or both. This is a welcome move as almost seven out of 10 people surveyed by Consumer Focus said they would be likely to switch tariff or payment type if their supplier told them they could be on a cheaper deal.

 Energy customers can speak directly to their energy firm about the free or discounted insulation and other energy efficiency measures they may be able to offer you under the CERT scheme, and to find out if they could be on a cheaper tariff or payment type. The contact details for each supplier are below.⁵

British Gas – 0800 980 8177
E.ON – 0800 479 0162
EDF Energy – 0800 096 9966
npower – 0800 02 22 20
ScottishPower – 0845 2 700 700
SSE – 0800 072 7201

 People can also contact the Home Heat Helpline on 0800 336699 or Energy Saving Trust on 0800 512 012 for advice on saving energy and grants and schemes available to help make your home warmer and save you money.

 Factfile:

• Consumer Focus research shows one in six people plan to only heat half, or fewer, of the rooms in their house this winter. One in 20 people will only be heating one or two rooms, rising to one in 10 of those in the poorest social group.
• Research by Citizens Advice shows 43% of people are worried they can’t afford their next fuel bill and one in two say energy bills will put a strain on their finances this year

 ENDS

Notes to editors:

 In Big Energy Week, 16 – 21 Jan 2012, charities, consumer groups, energy companies, switching sites, Ofgem and the Government are working together to give practical advice to people across the country to help them spend less on heating and powering their home. Advice events are being run in locations across the country. Find out more about Big Energy Week and what’s happening in your area at www.bigenergyweek.org.uk or pick up a leaflet from your local Citizens Advice Bureau.

1. Switching to a different payment method can make big savings – you could save the most money by paying by Direct Debit, or moving to an online or dual fuel tariff. Monthly direct debit is on average £100 cheaper per year than paying by cash or cheque.
2. DECC figures show that 13.7 million homes (59% of those with lofts) have adequate loft insulation, 9.5 million (41%) homes still need it. 11.0 million homes (59% of those with cavities) have adequate cavity wall insulation, 7.6m (41%) still need it. Suppliers collectively need to almost double their average monthly rate of professionally installed insulation if they are to comply with targets – from just over 100,000 installs a month to some 200,000. The Government estimates up to 2 million free or discounted insulation measures could be offered by energy suppliers in 2012.      
3. Omnibus research was carried out by TNS Omnibus on behalf of Consumer Focus on a face to face basis. The polling was carried out in November 2011 with 1166 adults across Great Britain.
4. This is in addition to energy suppliers writing to eight million customers paying by quarterly credit (cash or cheque) to advise them how they can save money by changing their payment method to direct debit.
5. Smaller energy suppliers are not required to offer discounted insulation under the CERT scheme. However consumers with these suppliers can contact them to see if they are on the best tariff / payment type on the numbers below. Anyone interested to see whether a smaller supplier can offer them a competitive rate can use an accredited price comparison service or speak to the supplier directly.

Co-operative Energy Tel: 0800 954 0693
Ebico Tel: 0800 458 7689
Ecotricity Tel: 0845 555 7100 (domestic customers)
First Utility Tel: 0845 215 5000
Good Energy Tel: 0845 601 1410
Green Energy Tel: 0800 783 8851
Ovo Energy Tel: 0800 5999 440
Spark Energy Tel: 0845 034 7474
Utilita Tel: 0845 450 4357
Utility Warehouse Tel: 0844 815 7777

 Press office contact details:

Consumer Focus: Emma Adler, 020 7799 8004, out of hours 07770 433 433
Energy UK press office: Ben Jun-Tai, 020 7104 4169, out of hours 07983 469 764
Citizens Advice: Emma Brennan, 020 7833 7178, out of hours 0845 099 0107

Digital channels are increasingly being used to deliver products and services to the public, across all sectors. But what does this mean for the consumer? Where do risks lie – new ones, or variations on old themes? From privacy loss to disengagement with the ‘real’ world, to new scams, to abuses of market power…what are the areas that concern people?

Where should they be perhaps be more concerned, or more informed? And what regulatory or other actions may be needed as a result?

These questions form the background to a new research report from Ctrl-Shift, commissioned by Consumer Focus. Drawing extensively on expert opinion, the report brings together a very wide range of downsides that sit alongside all the benefits of digital delivery.

Aside from digital exclusion (which is being covered by another project), there’s something here to interest everyone with a stake in digital policy or strategy development.

We’re bringing together content using the tag #digitaldownsides – so if you do feel moved to pick up and comment on some of these issues, it would be great if you could use that.

The report isn’t officially launched at the moment – treat this as a preview – what’s needed as a next step is some work on this raw research material to shape policy priorities and establish which areas need further action.

The report is available at: http://www.consumerfocus.org.uk/policy-research/digital-communications/digital-downsides

 ‘This report echoes concerns that we have raised repeatedly about the cost and rollout of smart meters. There are many potential benefits of smart metering but they will only be realised if Government gets its rollout scheme right.’

 ‘The costs of the scheme are huge. Customers, who will ultimately foot the bill, need to be confident that they will see tangible benefits that give value for money. The Government needs to listen to what consumer groups and MPs have to say, take stock of the scheme and bring a sharper focus on an efficient and controlled programme that has consumer benefits as its raison d’etre.

On roll-out co-ordination and cost:

‘Britain is one of the only places in the world to rely on a competitive supplier-led rollout and this presents some real challenges. Relying on competition alone risks adding complexity and cost to the scheme and will make it harder to achieve value for money. Greater coordination of supplier activity in installing smart meters will be essential if the scheme is going to work efficiently. Wherever energy companies can they should work with each other, local organisations and social housing providers to provide community-wide installations instead of a piecemeal approach.

 On reaching consumers:

‘The Government is developing a strategy to make sure the scheme engages with the needs of all consumers. This must be more than consumer-friendly window dressing and there need to be specific plans to reach vulnerable customers who are most likely to miss out. It is the opportunity to make sure the scheme is driven forward by its fundamental purpose – to transform the experience of energy consumers. The success of the scheme depends upon getting this right.’

 Consumer Focus is calling for: 

• A strategy to deliver the consumer benefits – Government needs to be clear how this programme will benefit consumers and develop a road map to get there. This should include not just energy savings and accurate bills, but also wider benefits such as lower cost prepay tariffs and improved customer service, social benefits, and increased digital inclusion.
• Greater coordination of supplier activity and community based approaches. This will help consumer engagement and energy savings, reduce the number of visits to homes and keep costs down. Consumer Focus research shows that only 23% of gas customers and 28% of electricity consumers trust their energy supplier to help them go green and save money on their energy bill.
• An extra help scheme for low income and vulnerable consumers – to safeguard consumers and help them save money on their energy bills. Rollout provides a unique opportunity to deliver existing fuel poverty schemes more cost effectively  - these opportunities must not be missed.
• The communications and engagement strategy should include a lead role for Government; free customer access to high quality support and advice on how to use their smart meter to save money, including independent advice on how to save money; and minimum standards for energy displays – to ensure they are easy to use and can help customers budget more easily.
• Annual reporting on the costs and benefits to customers, including reporting on the impact on the fuel poor and prepayment meter customers.

 ENDS

Responding to E.ON’s 6% price cut on electricity announced today, Adam Scorer, Director of Policy and External Affairs at Consumer Focus, said:

‘With cuts from five of the Big Six the spotlight is now on Scottish Power as the last of the major suppliers to act. Their customers will also be keen to see if the supplier will buck the trend and makes deeper cuts or reductions across both gas and electricity given wholesale price falls in both.

‘It’s good to have seen such a quick series of price reductions. We hope this shows suppliers are waking up to the need for customers to see rapid cuts when wholesale prices are low and that this trend will continue if wholesale costs carry on falling. But customers will still be paying a lot more for their energy than they were a year ago and there will still be almost seven million households in fuel poverty.

‘There is still a long way to go for suppliers to regain consumer trust. The next steps after these small price reductions will be for the industry to embrace Ofgem’s market reforms. That should include buying and selling more of their energy on the open market, selling energy to small suppliers on reasonable terms, and being more transparent on their actual cost of energy.’   

ENDS

 Notes to editors:

•  Please note: The wholesale cost of energy is the biggest single component of a retail energy bill – making up about half of the customer’s bill. Other areas of costs include network charges (for using the pipes and wires that bring energy to people’s homes), meter charges, the cost of environmental programmes and VAT. Ofgem provide further information. 

• Wholesale gas prices “peaked” at 73p/th 30/08/2011, they are now 59p/th. Electricity peaked at £60/MWh 05/04/2011 and is now £45/MWh.

In this newsletter:

Big Energy Week – Monday 16- Saturday 21 January 2012

Today sees the kick-off of the Big Energy Week (16-21 January 2012), which will see help and advice events held up and down the country. The campaign is being co-ordinated by Citizens Advice and is supported by Consumer Focus, Which?, Energy UK, energy companies, charities, accredited switching sites, Ofgem and the Government.

Key messages -

The goal of the week is to help people spend less on heating and powering their home, helping people save money on their bills by encouraging them to:

• Contact their supplier to check they are on the best tariff and payment method
• Visit an accredited switching website to see if they could get your energy cheaper elsewhere
• Insulate the walls and loft of their home, checking to see if they are eligible with their suppliers for free or discounted insulation
• Check they are not missing out on any benefits or tax credits that could up their income
• Use less energy through simple things like turning off lights and switching appliances off at the wall
• To contact their energy supplier if they are unable to pay their bills immediately
• Heating oil or liquid petroleum gas customers can also save money by shopping around to compare prices and buying in bulk with their neighbours or through an oil club

Over 100 local events will be held across Britain, from advice stands in shopping centres, to online switching help in Citizens Advice Bureaux.

Details about local events can be found here Citizens Advice and Which? will also be hosting a live webchat to answer questions on energy bills, switching and saving energy tomorrow between 12.00 and 2.00pm

Fact file

Big Energy Week survey main findings:

• 43% of people are worried they can’t afford their next fuel bill.
• one in two say energy bills will put a strain on their finances this year
• 71% of people who said their energy bills would put a strain on their finances this year also said they were worried they won’t be able to pay their next fuel bill.
• over half of 45-54 year olds said fuel bills will put pressure on the purse strings this year.
• parents with children under 15 living at home are most worried about energy bills putting a strain on their finances (56%).
• having the heating on less topped the list of what people are doing to cut energy bills (53%)
• one in three people don’t know that energy companies are offering help to insulate their home, rising to 46% in London.

For more information, please contact James Court via email, James.Court@consumerfocus.org.uk or

telephone on 020 7799 7932/ 07771 345 973.
Helpful Links

Big Energy Week Website – www.bigenergyweek.org.uk

Tariff and payment methods 
Consumer Focus  – provide a leaflet on switching energy suppliers and details of accredited energy switching sites

Dealing with debt
Consumer Focus – http://www.consumerfocus.org.uk/get-advice/energy/plug-the-debt

Citizens Advice – http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew.htm#

National Debt Helpline – www.nationaldebtline.co.uk

Financial help
Citizens Advice – offer a helpful guide

Save energy – save money
Energy Saving Trust on 0800 512 012.
Home Heat Helpline on 0800 336699
The Consumer Focus grant and free energy assistance help-finder:
www.consumerfocus.org.uk/get-advice/energy/help-finder    

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‘Cuts from four firms in three days is a good sign. We hope this rapid succession of announcements means that they understand that consumers expect them to respond quickly when wholesale costs are down for a significant period of time. 

‘Scottish Power and E.ON customers will expect to see their suppliers rapidly follow suit given the speed from other suppliers. People will also be keen to see if any supplier makes cuts across both gas and electricity given the downwards trend in wholesale costs for both. 

‘These cuts will not compensate for the big rises in 2011, they will not transform the energy market or significantly lessen the burden on hard pressed consumers. If companies are more prepared to cut prices quickly when wholesale markets allow, if they fully embrace Ofgem’s market reforms and they mean what they say about earning consumer trust, then the rehabilitation of energy companies may be possible. But there’s a long road to travel first.’ 

Consumer Focus also welcomes the news that npower will temporarily waive the penalty fee for fixed term customers. 

ENDS 

Notes to editors:

Price change details:

Dual Fuel Price Changes

Electricity Price Changes

Gas Price Changes

• Please note: The wholesale cost of energy is the biggest single component of a retail energy bill – making up about half of the customer’s bill. Other areas of costs include network charges (for using the pipes and wires that bring energy to people’s homes), meter charges, the cost of environmental programmes and VAT. Ofgem provide further information.
   
• Wholesale gas prices “peaked” at 73p/th 30/08/2011, they are now 60p/th. Electricity peaked at £60/MWh 05/04/2011 and is now £46/MWh.