‘Starting this summer, we will see the largest shake-up of our Post Office network including the rollout of 2,000 new Post Office Locals. We conducted extensive consumer research on this new model which showed decidedly mixed results. People liked the convenience and longer opening hours, but also raised a number of red flags about some fundamental issues.¹ 

‘We have found problems with the quality of advice – with second class postage sold correctly in only one in five mystery shopper visits – and product availability.  A third of people told us that privacy was poor in PO Locals, with 19 per cent reluctant to conduct high-value or confidential transactions. The PO Locals service is also not always reliable – particular problems were shown with trained staff being unavailable.

‘We welcome the transformation programme, and want it to succeed and deliver for consumers which is why we are highlighting areas where the trials show areas of underperformance. Consumers need to know this is a reliable service they can depend on. A new approach is needed, as many post offices are economically unsustainable. But it would be a major missed opportunity if these issues are not put right before PO Locals are rolled out nationwide.’ 

From summer 2012, the Post Office’s Network Transformation will see one in five sub-post offices convert to the PO Local model as part of the largest set of planned changes in the Post Office’s history.  Most sub-post offices currently operate as part of a small shop, but have a separate post office counter with dedicated staff. The Locals model will see post office services delivered by trained shop staff from the main counter of retail outlets such as convenience stores or petrol stations, rather than from a separate dedicated post office area. 

Consumer Focus feels that pilot programme gives the opportunity to learn and make improvements to get this new model right. The postal watchdog is now calling on Post Office Limited to commit to:

• The development of a core menu of products and services, with a commitment to consult locally where circumstances suggest a core product or service cannot reasonably be offered.
• Addressing consumer confusion and lack of awareness over product and service availability by providing clear product and service information in-branch.
• Improving service standards via enhancements to in-branch staff training, the retailer support offer and in-branch quality control, monitoring and compliance processes.
• Addressing the physical environment of the branch – external and internal – to satisfy consumer concerns especially on issues such as privacy and security.
• Dealing with the cash supply arrangements in place for Locals branches. 

ENDS

NOTES TO EDITORS

1. Examples of some of the key findings of customer research and mystery shopping undertaken by Consumer Focus at 105 pilot PO Locals are below. The press release and report – ‘Open all hours’ – provide full details on the research: 

Quality of Service and Product Availability

• Consumer Focus mystery shopping found widespread evidence of inconsistent and inaccurate product and pricing advice. Just one example is that mystery shoppers were sold the correct postage for a Second Class Large Letter in just 21 per cent of PO Local visits – this dropped to 15 per cent during extended opening hours.
• Almost one in five customers (17 per cent) were told they couldn’t access a service which actually should have been available – this includes parcels over 6kg and core services such as Special Delivery transactions, cash withdrawals and electronic bill payments.
• Nearly a quarter (22 per cent) of PO Local’s users were advised they could not post a parcel between seven and 15kg in weight  – this rose to 28 per cent in branded large convenience stores. PO Locals are supposed to offer a full range of parcel services up to 20kg, the weight limit specified by the universal service.
• Mystery shoppers with eligible bank accounts were unable to withdraw cash in 10 per cent of visits to eligible branches. The research also found some PO Locals were capping the cash or benefits a consumer can withdraw. 

Opening hours and consumer use:

• Almost one in five (18 per cent) consumers said they now use the post office in this location less frequently than the previous post office in the area.
• In seven per cent of branches, mystery shoppers found that the opening times displayed varied between one visit and the next. 

Privacy

• A third of users (34 per cent) said the privacy available to them when undertaking transactions is poor or very poor, with 41 per cent of users saying it is worse than in other sub-post offices.
• One in five (20 per cent) use other branches because of concerns about privacy, staff training, or because they generally feel more comfortable undertaking high value transactions in other branches. 

Consumer Focus commissioned GfK to undertake two research projects in the 105 locations where PO Locals have been piloted. This included a face-to-face survey of 1,030 adults living in the catchment areas of these 105 branches. Six focus groups were held also across the UK. As part of the research, a mystery shopping exercise was undertaken with 362 visits undertaken (up to four visits to each of the 105 PO Local branches). Mystery shoppers were allocated two out of a total of five scenarios designed to test the quality of product and pricing advice they received – 724 scenarios were tested overall. Fieldwork was carried out in January and February 2012.

Following the Government’s consumer advocacy reforms, Consumer Focus will continue to act in the consumer interest across a wide-range of sectors until our general advocacy role passes to Citizens Advice in April 2013. As part of the reforms, Consumer Focus will establish a new unit to identify and represent consumers’ interests in complex, regulated sectors, including energy and postal issues and, in Scotland, water. Our Annual Plan for 2012-13 is available online.

‘The most common problem for broadband consumers is ending-up with a slower broadband speed than they expected.¹ So, while it’s good news there have been improvements, it is disappointing that this research shows many providers still aren’t being as upfront with their customers as they should be.

‘Customers should be given basic information on the product they are buying, including information on the speeds they are likely to achieve. If suppliers aren’t honest from the start, it undermines consumers’ trust in the industry. We hope Ofcom’s discussions with ISPs will lead to improvements, and that the regulator will take further action if suppliers do not offer the information consumers need upfront and openly.’

Apart from improving the quality of information provided, Consumer Focus wants to see other consumer protection measures considered by the regulator. These include extending the cooling off period, so consumers can test broadband speeds once the service beds down, or introducing a penalty free post-switch period with the new provider – in case the service does not meet the description given.

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.

‘Consumers will need clear evidence that price rises are warranted if they are to stomach further increases to their bills. People simply don’t know whether they are asked to pay is fair. The perception is that suppliers are quick to pass on high price rises and slow to pass on small price cuts.

‘Much greater transparency on costs, pricing and profits is needed for customers to know whether they’re getting a fair deal. Wholesale prices go up and down but customers need to know this is accurately reflected in their bill.

‘With additional costs also set to be added to our bills, to make our energy supply greener and more secure, it is essential that more help is put in place for those who need it. We believe extra revenue the Government receives from carbon taxes should be used to help the millions of people who are being hit by rising costs.’

ENDS

Notes to Editors:

• Although energy consumption has fallen over winter 2011-12, due to the milder weather, average energy prices are higher than in winter 2010-11. The average energy bill is now £1,258 compared to £1,110 on 1 Jan 2011, based on gas consumption of 16,500 kWh and electricity consumption of 3,300 kWh per annum. This means that some consumers will be paying more for the same amount or even for less energy than they used last year. 
• Prices rose by an average of 16.3% for electricity and 22.9% for gas, from winter 2010/11 to Autumn 2011. Price decreases at the start of 2012 saw prices fall by -5.5% for electricity and -4.9% for gas in comparison.

Network Transformation stands to deliver welcome improvements and investment in post offices, and if it is successful, will help to secure a sustainable and accessible network that meets consumers’ needs.

However, Network Transformation inevitably necessitates significant changes in post office provision – and carries considerable risks as well as opportunities. For Network Transformation to succeed, as we want it to, Post Office Ltd (POL) will need to demonstrate that the PO Local model is ready for wider rollout – and commit to ongoing improvements as the programme gets underway.

Our research explores the consumer experience of, and service standards in, PO Local pilot branches – and aims to drive improvements that may be necessary prior to and during rollout. Our findings show that significant ongoing improvements are needed if consumers are to benefit from these changes, with emphasis on driving up service standards and the consistency and reliability of service provision – and to make improvements to the privacy, branch layout and product range on offer.

‘It’s great to see the first collective switching in the UK in motion –  this is an approach that is set to grow and be applied to other markets in the future.

‘Many people have been turned-off from switching in the energy sector and other markets, and can be stuck with a bad deal as a result. Collective switching offers an opportunity to put power back into consumer’s hands and makes getting a better deal much more straightforward. This first collective switch shows that better value can be obtained by an intermediary who works on  behalf of consumers. It is a system which is convenient and low effort for customers with potentially significant rewards, and would work in many other consumer markets. 

‘It’s good for competition that one of the smaller players in the sector has won the bid. What remains to see now, is how many customers take up the deal that Which?’s Big Switch is offering. We hope this will prove a success and pave the way for other schemes that offer consumers a straightforward route to better value deals.’

ENDS 

Notes to Editors 

Consumer Focus recently issued ‘Get it, together’, a  report which makes the case for collective switching.

Consumer Focus is calling for improvements to the new Post Office Local (PO Local) model, if it is to work better for consumers. The call comes as a new report from the watchdog – ‘Open all hours’ – shows that while the new model has potential benefits, there are unresolved problems which need to be addressed, if consumers are to get the full benefits which major changes to the UK’s post office network can deliver.

From summer 2012, the Post Office’s Network Transformation will see one in five sub-post offices convert to the PO Local model as part of the largest set of planned changes in the Post Office’s history.  Most sub-post offices currently operate as part of a small shop, but have a separate post office counter with dedicated staff. The Locals model will see post office services delivered by trained shop staff from the main counter of retail outlets such as convenience stores or petrol stations, rather than from a separate dedicated post office area. 

Many post offices are economically unsustainable, so Consumer Focus recognises a new approach is needed. With around 2,000 PO Local conversions, these changes provide a major opportunity for improvements. The watchdog’s report shows that PO Locals offers many positives for customers with greater convenience and extended opening hours, which were welcomed by the vast majority of consumers (eight out of ten of those surveyed).¹ However, based on customer research and mystery shopping at 105 branches currently trialling the model, the research also shows a number of areas which must be addressed if the new model is to meet consumers’ needs and deliver a consistent and reliable service. 

The current trials are intended to identify areas which need attention as the Locals model develops and Consumer Focus has carried out this research to assist Post Office Limited in this endeavour and we recognise that it is taking action on some our findings.  We will continue to monitor and report to consumers on its actions.  

Key findings from Consumer Focus’s research showed improvements are needed in PO Locals on:

Advice – Consumer Focus mystery shopping showed widespread evidence of inconsistent, and often inaccurate, product and pricing advice.² For example, second class postage was sold correctly in only one in five visits³; large or heavy parcels were refused in a quarter of cases; and in two-thirds of cases, researchers were sold Special Delivery without staff asking the questions necessary to determine if it was the most suitable and suitably priced product.⁴ 

Product availability – More than one in six customers (17 per cent) were told they couldn’t access a service which actually should have been available.⁵ Not every consumer expected to access all post office services at their PO Local outlet.   However, for a significant number of those surveyed, some of the services they said they needed and which are currently available across the network, wouldn’t be available at most PO Locals. These include Local Collect services (52 per cent).⁶ Although 75 per cent of customers said their perception of the  knowledge of counter assistants was good, this mystery shopping show there appears to be a significant problem.

Privacy – Over a third of users (34 per cent) found the privacy available in a PO Local to be poor. Of all Locals users asked, 41 per cent said the privacy was worse than in sub-post offices.  Almost one in five (19 per cent) also said they were reluctant, because of concerns over the perceived unreliability of staff, to undertake high-value, personal or confidential transactions at PO Locals.

Consistency of service – The report outlines problems with the reliability of the service at many branches, such as trained staff being unavailable or the demands of the associated business taking priority. Mystery shoppers also reported that PO Locals were not always open when scheduled, particularly during extended hours.

Cash withdrawals – The research also found some PO Locals were capping the cash or benefits a consumer can withdraw, or were unable to make any cash payments. In branches that do not receive cash supplies from Post Office Limited (POL), mystery shoppers were unable to withdraw cash in 10 per cent of visits (approximately 33 per cent of the current Locals pilots operate without cash supplies from POL – all sub post-offices receive cash supplies from POL). This poses a potential risk for older and vulnerable consumers, who rely on post offices to access their cash.

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

 ‘Changes are needed to put the post office network on a more sustainable financial footing. Communities rely on their local post office, so everything possible must be done to make sure that all elements of Post Office Locals are working well for customers, given the planned national roll out of such major changes. This report shows a mixed picture and that further work is needed to make sure the millions of customers who will be affected receive a good quality and reliable service. 

‘Some aspects of the new Locals model could be great news for consumers. Everyone will welcome longer opening hours, but they would also expect most core post office services to be available.  With more people buying goods off the internet, it would make so much sense to be able to pick up an undelivered parcel from a PO Local outside usual working hours. That many Locals don’t offer this service is the sort of issue Post Office Limited should focus on, to make this programme the success we all want it to be.

‘We want Post Office Locals to work well. Our concern is that Post Office Limited will be missing a golden opportunity if it does not get the PO Local model right and we hope our findings will help them in this respect.  We don’t want to see shortcomings we’ve picked up in pilot branches being replicated across two thousand PO Locals in the future. We do however want to see the advantages and benefits such as convenience and longer opening hours that our research has also identified.’

To improve the PO Local model for consumers, Consumer Focus wants to see measures including:

• Post Office Limited (POL) to raise the quality of advice given to customers – including an overhaul of staff training, stricter monitoring, support and compliance processes.
   
• POL to offer a core menu of services in every PO Local branch which is well-communicated to consumers. This should include products consumers want to access which are not currently offered through PO Locals, such as paying paper-based bills, making cash deposits and withdrawals from all accounts, and a full range of parcel services. The Local Collect service⁷ could build on the convenience of extended opening hours. Given the growth in the parcels market, and reduction in the number of delivery offices as part of Royal Mail’s modernisation programme, expanding parcel services available at PO Locals presents an important opportunity. 
   
• POL to address consumer concerns over privacy, the open plan counter and the knock-on impact on confidentiality when undertaking transactions.
   
• POL must offer a reliable service through PO Locals, comparable with other post office models. Longer opening hours are strongly welcomed by consumers and POL must capitalise fully on this key strength. Breaks in the service due to unavailability of trained staff, irregular opening hours, and conflicting business demands, must be tackled. Longer opening hours must also be better communicated in-branch – in over a quarter (29 per cent) of mystery shopping visits opening hours were not seen displayed.
   
• The arrangements for supplying PO Locals with cash must be reviewed, and if necessary, changed.

ENDS 

Notes to editors: 

• Consumer Focus commissioned GfK to undertake two research projects in the 105 locations where PO Locals have been piloted. This included a face-to-face survey of 1,030 adults living in the catchment areas of these 105 branches. Six focus groups were held also across the UK. As part of the research, a mystery shopping exercise was undertaken with 362 visits undertaken (up to four visits to each of the 105 PO Local branches). Mystery shoppers were allocated two out of a total of five scenarios designed to test the quality of product and pricing advice they received – 724 scenarios were tested overall. Fieldwork was carried out in January and February 2012.
   
• Following the Government’s consumer advocacy reforms, Consumer Focus will continue to act in the consumer interest across a wide-range of sectors until our general advocacy role passes to Citizens Advice in April 2013. As part of the reforms, Consumer Focus will establish a new unit to identify and represent consumers’ interests in complex, regulated sectors, including energy and postal issues and, in Scotland, water. Our Annual Plan for 2012-13 is available online.

1. In the research, 81 per cent of users and 79 per cent of non-users said that extended opening hours at PO Locals would be useful to them. Over three-quarters (77 per cent) had visited a PO Local during extended opening hours. One in seven (15 per cent) said they now use the PO Local primarily during extended opening hours. Use of PO Locals during extended opening hours is higher among those in full-time work (84 per cent).
    
2. As part of the mystery shopping exercise, at each branch the researchers completed two of five scenarios to assess the quality of pricing and product advice of core PO Local products and services. The scenarios assessed were: posting a large letter; posting an item that should be sent by Special Delivery; posting a large parcel (over 6kg); enquiring about the availability of travel money and making a cash withdrawal. Visits were spread across the opening hours of PO Locals and in all 724 scenarios were undertaken across 105 pilot PO Local branches.
    
3. Consumer Focus mystery shoppers were correctly sold postage for a Second Class Large Letter in just 21 per cent of PO Local visits – this dropped to 15 per cent during extended opening hours. The scenario was to send a large, flat A4 envelope, with counter staff told the item was not urgent – the correct advice would have a second class large letter stamp (58 pence when research was conducted). Two-thirds of mystery shoppers were advised to buy more expensive postage than they needed and five per cent were actually charged less than they should have been. Previous research conducted by the watchdog found that in High Street, Crown and franchised branches, mystery shoppers were told the correct postage for a First and Second Class large letter in 99 per cent of cases.
    
4. Post Office staff should ask when an item needs to arrive, its contents and value, before they can correctly identify whether Special Delivery is the right product to meet the customers’ needs. Although Special Delivery was the right product for this scenario, there is a significant price difference if the wrong product is sold – Special Delivery is now £5.90 (£5.45 when the research was conducted, before the recent price rises.) In comparison, a first class stamp is 60p (46p before the recent price rises.)
    
5. Services which customers could not access included: parcels over 6kg and core services such as Special Delivery, cash withdrawals and electronic bill payments.
    
6. Services not offered through PO Locals, but users say they would need to use at their post office branch
    

	Percentage of consumers who say they would need to use the following services at their post office	Available at all non- PO Locals post offices, including sub post offices	Available at larger post offices
Local Collect	52	ü
Payment of car tax	52		ü
Passport or driving licence applications	42		ü
Cash withdrawal or deposit (using passbook or paper slip)	27	ü
Pay a paper-based bill	21	ü
On demand foreign currency	16		ü
International parcels over 5kg	15	ü
Cheque deposit	13	ü
Parcelforce Worldwide	9	ü

Base: all users (807)

PO Locals offer a core range of post office services. They typically will not offer the above services. Most of these services are available in all 11,600 post offices, including sub-post offices. The exceptions are car tax payments, on demand currency, and DVLA or passport applications – which are only available in larger post offices – between 2,500 and 4,500 branches depending on the service. 

Please note – a small number of Locals do provide the Local Collect service and it is not a service precluded from the model. Cash withdrawals or deposit can be made if a bank card is used but not without a bank card, e.g. a passbook could not be used. Paper-bill payments can also be processed if there is a bar code on the bill.

7. The Local Collect service gives customers the option to pay a small fee for undelivered parcels or signed for mail to be redelivered to their local Post Office, rather than having to collect this from a delivery office or wait in for redelivery at home. As most PO Locals will offer extended opening hours having a parcel delivered to a local branch could provide a more convenient option for consumers to pick up undelivered mail.

‘The last thing people want when they come back relaxed from their holiday is to be shocked by the size of their mobile bill. So further cuts to the charges phone companies can impose on their customers when travelling in Europe, are very welcome. The data-roaming caps are particularly good news, as data-use can incur some of the biggest and most unexpected bills for consumers.

‘However it is unfair that customers using their phones at home in the UK do not have a similar level of protection. We’d like to see this gap in protection closed voluntarily by mobile phone providers or for the regulator to tackle this issue.’ 

In addition Consumer Focus would like to see the following measures to help mobile phone customers:

• Greater transparency in marketing contracts and tariffs to consumers, including clear information at the point of sale about contract terms. This should include the usage levels consumers can expect as part of their package e.g. X many hours of browsing web pages, X many song downloads and so on.
   
• Manufacturers of mobile devices should be encouraged to reduce the ‘background’ data uses by devices which often cause bill shocks. Simple changes could have a big positive impact on consumers, for example preventing default updates and setting data roaming off on mobile handsets as a default. 
   
• We support Ofcoms move to encourage telecom providers to develop more robust mechanisms to protect customers from shock bills and provide an alert service to customers to warn them about costs or any unusual activity on the account. We will be keeping an eye on how these measures work in practice and if they do not work we will be calling on Ofcom to introduce obligatory financial caps and alerts for customers at home.

ENDS

‘Government recognition that there is a significant need for more credit unions is very welcome. Access to affordable credit is a major issue for many consumers, especially where they need small sums to make an emergency purchase or to tide them over for a short time period. 

‘High Street Banks should do more to provide affordable credit for consumers, but are dragging their heels. Credit unions are perfectly placed to help plug this gap. Credit unions playing fair and offering competitive rates could transform the market for consumers. They could offer a real alternative to payday loans and other high cost form of credit, which are a growing cause of concern. 

‘New research by Consumer Focus shows that one-third of consumers are interested in joining a credit union, but that two-thirds of these say they cannot because they do not think they have one nearby. This is why we believe linking credit unions to our post office network could be a perfect match and help ensure the continuation of the vital community resource which our post offices provide.  

‘There are more post offices than banks and building society branches combined and they offer convenient access and high levels of trust.  Forty per cent of low income consumers told us they would be more likely to open a credit union account, or apply for a small loan, if they could do so through a Post Office branch.’

ENDS

‘Firms must not be left to profit at the expense of customers who have been misled. A fine of £1.25 million set by the court sends a very strong message to the energy industry that it must play fair by its customers and get it right on sales. Surrey Trading Standards should be applauded for its persistent pursuit of a guilty verdict over these obviously misleading sales practices. 

‘It is positive that since this case started most energy firms have ended cold-call sales on the doorstep. Poor practices like this are unacceptable and drag the reputation of the energy industry further through the mud. We hope the lessons learned from this issue will mean energy firms make sure they put consumer protection and customer service at the heart of all their sales methods.

‘We’d urge any customer who thinks they may have lost out after being missold to by an SSE salesperson to contact the firm to seek compensation. We are also calling on E.ON, as the only major supplier left who has failed to stop cold-call doorstep sales, to end this distrusted sales practice immediately.’

Consumer Focus is urging any current or former SSE customer who thinks they may have lost out to the company on the doorstep, or through any other sales practice, to contact the firm about getting compensation through SSE’s sales guarantee. Under the guarantee, SSE promises that any customer who shows that they switched to SSE after being given inaccurate information or being misled will have any resulting financial loss recompensed. The SSE sales guarantee helpline can be reached on 0845 0707 388.

ENDS

Notes to editors:

• This is believed to be the largest fine ever resulting from any court case brought by Trading Standards.

1. Currently three of the ‘Big Six’ suppliers, Scottish Power, SSE and npower are being investigated by Ofgem about whether their previous door-step sales practices have broken the rules. Ofgem is also investigating potential misselling by E.ON but is unclear whether this relates to doorstep sales.

• Consumer Focus research in July 2011 showed:
  • More than nine out of ten people who have bought energy products on the door would never do so again
  • Only 4% of people are positive about energy door step sales
  • Only 1% of consumers see doorstep sales as a useful way to find out about products
  • 41% of consumers felt under pressure to buy on the doorstep
  • 50% of those who sign up on the door for a product or service, and then changed their mind, signed up because they felt pressurised
  • 79% of customers would prefer prior appointments agreed before a sales visit

Doorstep sales timeline.

Tuesday 10 May 2011 – SSE found guilty of using a misleading sales script for doorstep energy sales

Friday 27 May 2011 – SSE appeals against guilty verdict

Friday 8 July 2011 – SSE announces that they are suspending doorstep sales

Saturday 23 July 2011 – Further to negotiations with suppliers Consumer Focus publishes research which shows consumer distrust of energy sales and calls for all energy firms to end cold-call doorstep energy sales.

Friday 12 August 2011 – British Gas announces that it will be suspending energy doorstep sales

Wednesday 7 September 2011 – EDF announces that it will be suspending energy doorstep sales

Tuesday 11 October 2011 – British Gas announces that it will be permanently ending cold call energy doorstep sales

Monday 17 October 2011 – npower announces that it will be ending energy doorstep sales

Friday 21 October 2011 – Scottish Power announces that it will be ending energy doorstep sales

Thursday 15 December 2011 – SSE announces a sales guarantee

Friday 16 March 2012 – SSE’s appeal against the guilty verdict for doorstep misselling case fails – company found guilty

Wednesday 4 April 2012 – Ofgem investigation announced into potential misselling by E.ON (it is unclear what type of sales the investigation relates to)

Friday 4 May 2012 – SSE fine set for doorstep misselling guilty verdict.

Today we published Get it, together – the case for collective switching in the age of connected consumers. This report argues that a collective approach to switching can improve consumers’ experience of the energy, financial services and telecoms markets.

The people who created these markets shared a common expectation that by giving consumers choice they would drive competition. By seeking out and switching to better deals in sufficient numbers and with sufficient frequency, consumers would realise the benefits of competition – namely better value, better service and innovation.

The problem is, consumers don’t tend to conform with this expectation and for good reason too. These markets are complex and identifying a better energy tariff, mobile phone contract, or interest rate for our savings can be like trying to find our way through a maze. And most of us know someone who’s been left bruised by a poor switching experience. As a result, the common characteristic of these markets is deep-seated inertia. And if consumers don’t engage in these markets, competition stalls and the benefits it should deliver are absent.

What if we could offer an alternative to consumers who have rejected the conventional ‘go it alone’ route to market? One that transformed inertia from a force that works against consumers to a force that an intermediary can put to work on their behalf; and one that offered consumers the prospect of a better deal for much less effort.

Collective switching has the potential to make this possible. It would transfer the onus for getting a better deal from consumers to an intermediary that does the hard work in these markets for them. It would offer the focal point around which consumers could cluster as a group, bringing together the group’s demand and fashioning it into a block of market share that providers are then compelled to compete for. The intermediary would then manage the mass switch of participating consumers to the provider who had offered the best deal to the group.

iChoosr and the Dutch consumer body, Consumentenbond, have successfully used this approach in energy markets on the European mainland; and we are starting to see attempts to make it work here, including the Which? Big Switch initiative and thePeoplesPower.co.uk. More are in the pipeline. Unsurprisingly, the consumer response to these initiatives indicates significant demand for being able to engage in these markets in a hassle-free way. We believe collective switching will grow from these early initiatives into a major force that gives consumers the power to get a better deal from the markets listed here. We look forward to engaging with any organisation that has an interest in the ideas set out in the report and in working with them to realise the potential of collective switching.

Canfu arolwg siopwyr dirgel fod bron i hanner y cynghorwyr (44%) wedi rhoi cyngor anghywir neu nad oeddent yn gallu rhoi ateb, pan ofynnwyd iddynt sut i ganslo CPA. Mae’r diffyg eglurder hwn gan y banciau’n golygu bod ansicrwydd ymhlith defnyddwyr ynghylch eu hawliau yn achos CPAau, ac y gallai hynny olygu bod taliadau’n cael eu gwneud heb yn wybod i’r defnyddiwr a heb iddynt roi caniatâd.  

Mae CPA yn fath o drefniant talu awtomatig a wneir gyda cherdyn debyd neu gredyd. Fel yn achos debyd uniongyrchol, mae defnyddwyr yn rhoi caniatâd i gyflenwr neu fanwerthwyr i gymryd taliadau oddi ar eu cerdyn. Mae llawer o fusnesau’n ffafrio trefniadau o’r fath, gan gynnwys darparwyr benthyciadau diwrnod cyflog, campfeydd, cwmnïau yswiriant, cyhoeddwyr cylchgronau a darparwyr gwasanaethau rhyngrwyd. Gall yr amseriad a’r symiau amrywio. Gall CPA gael ei adnabod hefyd fel awdurdod taliadau cylchol, trafodion cylchol neu daliadau cylchol.  

Aeth Llais Defnyddwyr ati i gynnal ymarferiad siopwr dirgel ymhlith nawr o’r prif fanciau er mwyn gweld faint oedd eu cynghorwyr cwsmeriaid yn wybod am sut mae mynd ati i ganslo CPA. Yr ateb cywir fyddai canslo’r CPA drwy’r banc, a hefyd hysbysu’r cyflenwr neu fanwerthwr ei fod yn cael ei ganslo¹.  

Canfu’r arolwg mai dim ond 56 y cant o staff gwasanaeth cwsmeriaid a roddodd yr ateb cywir. Rhoddodd 44 y cant ateb anghywir, neu nid oeddent yn gallu ateb o gwbl². Roedd yn achos pryder o ddarganfod eu bod wedi dweud wrth 28 y cant o gwsmeriaid fod yn rhaid iddynt fynd â’u hymholiad at y cwmni a oedd wedi sefydlu’r CPA, sy’n mynd yn groes i ganllawiau’r Awdurdod Gwasanaethau Ariannol.  

Meddai Sarah Brooks, Cyfarwyddwr Gwasanaethau Ariannol Llais Defnyddwyr: 

‘Mae CPAau yn ddull cyffredin o wneud taliadau ond mae’r lefelau dealltwriaeth amdanynt yn isel. Mae’r problemau sy’n codi wrth geisio canslo’n golygu bod defnyddwyr yn mynd i orddrafft am eu bod yn talu am rywbeth nad ydynt ei eisiau mwyach, ac mae hynny’n annerbyniol. Nid oes disgwyl i gwsmeriaid fod yn arbenigwyr ar y dull hwn o dalu, felly mae’n hanfodol bod staff y banciau’n gwybod y rheolau ac yn gallu rhoi cyngor eglur a chywir. 

‘Mae’n bwysig bod defnyddwyr yn gwybod bod ganddynt hawl i ganslo CPA drwy gysylltu â’u banc. Yn ddelfrydol, dylai’r cwsmer gysylltu â’r cwmni sy’n cael y taliad hefyd – ond yr hyn sy’n bwysig yw nid oes yn rhaid i’r cwmni ganslo’r CPA ar eu rhan.’ 

Mae rhai o’r anawsterau y mae defnyddwyr yn eu hwynebu gyda CPAau yn cynnwys:  

• Cael eu symud yn ôl a blaen rhwng y banc a’r busnes, gyda’r naill na’r llall yn cymryd cyfrifoldeb am ganslo’r CPA. Gall hyn wneud i’r cwsmer deimlo nad oes ganddynt ddewis heblaw canslo’r cerdyn talu a ddefnyddir
• Mae busnesau’n defnyddio CPAau i gymryd taliadau ychwanegol ar ben y taliad am y nwyddau neu’r gwasanaethau maent wedi tanysgrifio iddynt, e.e. ffioedd ar gyfer adennill dyledion
• Mae taliadau CPA wedi’u canslo yn cael eu cymryd ar gerdyn wedi’i ganslo a’u debydu ar gerdyn newydd sy’n gysylltiedig â’r un cyfrif banc, heb ganiatâd y cwsmer.
• Gwelir dryswch ymhlith cwsmeriaid ynghylch yr hyn maent wedi cydsynio iddo, yn enwedig gan fod cytundebau’n cael eu gwneud heb gofnod ar bapur o’r hyn y cytunwyd arno, ac nid yw’r telerau’n amlwg i’r cwsmer cyffredin. Mae hyn wedi bod yn broblem arbennig gyda gwefannau disgownt a gostyngiadau i siopwyr.³ 

Mae’n bwysig dros ben bod defnyddwyr yn cysylltu â’u banc os ydynt yn cael anhawster cysylltu â’r busnes dan sylw neu os ydynt yn amau a fydd y cwmni’n mynd ymlaen i ganslo’r taliad. Bydd yn rhaid i ddefnyddwyr dalu unrhyw ddyled sydd heb ei thalu, ond ni all y cwmni fynnu bod y cwsmer yn talu’r ddyled drwy CPA. Byddai’r corff gwarchod hefyd yn annog unrhyw gwsmer sydd wedi cael cyngor anghywir ynglŷn â chanslo CPA i gwyno i’r banc dan sylw. 

Er mwyn datrys y problemau y mae defnyddwyr yn eu hwynebu gyda CPAau, mae Llais Defnyddwyr yn galw am gyfres o fesurau, gan gynnwys: 

• Gwybodaeth eglur a chywir i gwsmeriaid ynghylch CPAau, gan staff gwasanaeth cwsmeriaid y banciau ac ar eu gwefan, yn enwedig ynglŷn â chanslo taliadau.
• Rhaid i’r wybodaeth hon ddatgan yn eglur y bydd unrhyw arian sy’n cael ei dynnu o gyfrif y cwsmer ar ôl i’r CPA gael ei ganslo yn cael ei ad-dalu ar unwaith i’r cwsmer gan y banc.⁴ 

DIWEDD 

Nodiadau i olygyddion: 

1. Cynhaliodd Llais Defnyddwyr ymarferiad siopwr dirgel ymhlith naw o brif fanciau’r DU (Santander, Barclays, HSBC, Lloyds TSB, Halifax, Bank of Scotland, RBS, NatWest a Nationwide). Cysylltwyd â hwy gyfanswm o 308 o weithiau: 126 dros y ffôn. 127 wyneb yn wyneb mewn canghennau a 55 weithiau drwy ymweld â’u gwefannau.  
    
2. Y cwestiwn a ofynnwyd oedd: ‘Pe bawn yn sefydlu taliad misol dros y rhyngrwyd i gampfa, gan ddefnyddio fy ngherdyn debyd, dywedodd fy mhartner wrthyf y byddai’n rhywbeth sy’n cael ei alw’n “Awdurdod Taliad Parhaol”. Pe bawn i am roi’r gorau iddo’n ddiweddarach, a ddylwn gysylltu â’r banc ynteu’r gampfa?’ Mae sawl ateb cywir, sef: cysylltu â’r gampfa a’r banc; cysylltu â’r banc; cysylltu â’r banc ond yn ddelfrydol cysylltu â’r gampfa hefyd. Byddai pedwerydd ateb yn debygol o alluogi’r cwsmer i ganslo’i CPA yn gywir ond ni fyddai o reidrwydd yn ei warantu: cysylltu â’r gampfa ond yn ddelfrydol cysylltu â’r banc hefyd.               
          
   • Cysylltu â’r banc (ond yn ddelfrydol â’r gampfa hefyd)         27%                 Cywir
   • Cysylltu â’r gampfa a’r banc                                             11%                 Cywir
   • Cysylltu â’r banc                                                               7%                 Cywir
   • Cysylltu â’r gampfa ond yn ddelfrydol â’r banc hefyd           11%                 Cywir        
   • Cysylltu â’r gampfa                                                         28 %                 Anghywir
   • Methu dod o hyd i ateb ar ôl 5 munud o chwilio ar y we       11%                 Dim ateb
   • Atebion eraill                                                                    5%                 Anghywir        

     Bydd Llais Defnyddwyr yn rhannu’r ymchwil hwn â’r Awdurdod Gwasanaethau Ariannol sy’n rheoleiddio’r Banciau, ac â’r Swyddfa Masnachu Teg, sy’n gyfrifol am reoleiddio credyd defnyddwyr. 
     

3. Mae ymchwiliadau Llais Defnyddwyr wedi bod yn edrych ar y farchnad hon, gan gynnwys cwmnïau sy’n defnyddio’r enwau masnachu Rewards First a Shopper Discounts and Rewards, ac mae eisoes wedi rhannu’i bryderon â’r Swyddfa Masnachu Teg. Mae Llais Defnyddwyr yn ymwybodol bod defnyddwyr yn cofrestru i gael yr hyn roeddent yn credu oedd yn ostyngiadau untro neu gynigion ar wefan fanwerthu (ee. £10 i ffwrdd wrth brynu) heb sylweddoli eu bod yn gwneud cytundeb tanysgrifiad misol sy’n cael ei redeg gan drydydd parti fel Shopper Discounts and Rewards. Dywedodd defnyddwyr nad oeddent yn ymwybodol o hyn nes i arian gael ei dynnu o’u cyfrif cyfredol neu eu cerdyn credyd yn ddiweddarach. Mae Llais Defnyddwyr yn poeni y gallai defnyddwyr gael eu camarwain am nad oedd y Telerau ac Amodau a roddwyd yn ddigon eglur a dywedodd nifer o’r rhai sydd wedi cwyno nad oeddent wedi cael cadarnhad na negeseuon e-bost dilynol ar ôl iddynt dderbyn y daleb oedd yn rhoi’r gostyngiad.
    
4. Os yw cyflenwr yn dal i gymryd arian allan o gyfrif ar ôl i’r CPA gael ei ganslo rhaid i’r banc ad-dalu’r defnyddiwr ar unwaith. Gall y banc wedyn fynd ar ôl y cyflenwr i gael yr arian hwn yn ôl.

Nid yw rhoi mwy o wybodaeth a chyngor i ddefnyddwyr wedi bod yn ddigon i dorri drwy’r dryswch a’r cymhlethdodau maent yn eu hwynebu wrth geisio newid cyflenwr yn y marchnadoedd hyn. Ynghyd â phryderon dealladwy na fyddant o reidrwydd yn cael bargen well, mae hyn yn golygu nad yw llawer o ddefnyddwyr yn mynd i’r drafferth o newid ac maent felly’n parhau i gael bargen wael. 

Ond, mae dull newydd yn bosibl yn awr a allai symud cydbwysedd y grym oddi wrth y cyflenwyr ac i’r defnyddwyr. Mae’r cynnydd ym mhoblogrwydd technolegau cyfryngau cymdeithasol yn golygu ei bod yn llawer haws i bobl gael bargen well heb orfod gwneud yr holl waith caled eu hunain. 

Meddai Cyfarwyddwr Grymuso Defnyddwyr Llais Defnyddwyr, Richard Bates: ‘Gallai hwn fod yn ddull sy’n rhoi mwy o rym yn nwylo’r defnyddwyr o fewn rhai o’r marchnadoedd pwysicaf. Gallai gael gwared ar y dryswch a’r cymhlethdodau sy’n rhwystro pobl rhag newid a chynnig ffordd symlach i ddefnyddwyr i gael gwell gwerth am eu harian. 

‘Mewn geiriau eraill, gall newid ar y cyd weithio fel cyfryngwr, sy’n gweithio ar ran defnyddwyr, i droi syrthni o fod yn rhywbeth sy’n gweithio yn erbyn buddiannau defnyddwyr i fod yn rym sy’n gweithio ar eu rhan. Y peth lleiaf y gall newid ar y cyd ei wneud yw amlygu’r marchnadoedd hyn, gan ddangos pam nad yw defnyddwyr yn mynd i’r drafferth i newid a sut y gall y cyfryngau cymdeithasol a gweithredu ar y cyd chwalu ein rhagdybiaethau ar sut y gall llais y defnyddiwr drawsnewid marchnadoedd.’ 

Meddai Edward Davey, Yr Ysgrifennydd Gwladol dros Ynni a Newid Hinsawdd: ‘Gallai prynu ar y cyd fod yn ffordd rymus o newid y pwyslais yn y berthynas rhwng defnyddwyr a chyflenwyr mewn amryw o farchnadoedd. 

‘Mae ein marchnad ynni’n enghraifft dda iawn, lle mae cynlluniau sy’n galluogi pobl i ddod at ei gilydd fel hyn yn helpu defnyddwyr i gael bargen well am eu nwy a’u trydan, cael gwared ar y drafferth o siopa o gwmpas a newid, ac mae hefyd yn hybu cystadleuaeth sy’n gorfodi cyflenwyr i weithio’n galetach i gael eich busnes.

‘Mae’r potensial ar gyfer hyn yn y DU yn gyffrous iawn ac rwyf yn croesawu gwaith Llais Defnyddwyr yn y maes. Rydym yn gweithio i chwalu’r rhwystrau sy’n rhwystro cynlluniau prynu ar y cyd newydd rhag cael eu sefydlu ac rwyf am weld cyflenwyr yn ymateb yn bositif i’r cynlluniau hyn.’ 

Mae’n bosibl bellach i gorff cyfryngol drosi gofynion defnyddwyr a’u cyfuno i greu cyfran digon mawr yn y farchnad fel na all y cwmnïau eu diystyru. Mae hyn yn defnyddio pŵer positif y farchnad i sicrhau bargen well i ddefnyddwyr. Potensial mawr newid ar y cyd yw sefyllfa pan mae gan bob defnyddiwr angen cyson am y gwasanaeth, ond gyda dim ond lleiafrif bychan yn ymgysylltu â’r farchnad. Mae newid ar y cyd yn dilyn graen y syrthni hwn ac mae’n cynnig gobaith am well canlyniad i ddefnyddwyr am lai o ymdrech.  

Mae nifer o gynlluniau ar dir mawr Ewrop eisoes wedi gweld y buddiannau a all ddod i ddefnyddwyr yn sgil newid ar y cyd:

• Mae dros hanner miliwn o ddefnyddwyr yn yr Iseldiroedd, Gwlad Belg a’r Almaen wedi cofrestru â rhaglenni newid ar y cyd iChoosr ar gyfer nwy, trydan ac olew gwresogi.
• Mae’r arbediad cyfartalog y mae pob aelwyd unigol wedi’i wneud yn sgil iChoosr rhwng €200 a €250 ar gyfer contract dau danwydd ynni. Mae’r bid buddugol wedi arwain at wella tariff presennol 95 y cant o’r cyfranogwyr.
• Mae’r mudiad sy’n hyrwyddo buddiannau defnyddwyr yn yr Iseldiroedd Consumentenbond, wedi rheoli dau gynllun newid ynni ar y cyd gyda 57,000 o bobl yn newid i fargen well yn yr Iseldiroedd
• Cafodd y cynllun proffil uchel cyntaf yn y DU ei lansio gan Which? ac mae’r wefan ymgyrchu 38 Degrees wedi denu dros chwarter miliwn o ddefnyddwyr.
• Mae’r Cwmni Buddiannau Cymunedol, thePeoplesPower.co.uk, hefyd yn recriwtio defnyddwyr ar gyfer cynllun newid ar y cyd ym marchnad ynni Prydain.

DIWEDD 

Nodiadau i olygyddion: 

1. Mae adroddiad Llais Defnyddwyr, Get it, together i’w weld yn http://bit.ly/IdpP6y.
2. Ffigurau ar gyfer newid ar y cyd yn Ewrop. Rhoddwyd y ffigurau i Lais Defnyddwyr gan iChoosr, neu fe’u codwyd o’u gwefan yn http://bit.ly/GIMjsP, a gan Consumentenbond Energiecollectief http://bit.ly/IUYcTf

Giving consumers more information and advice has not been enough to cut through the confusion and complexity they face when trying to switch in these markets. Together with understandable concerns that they may not get a better deal, this means many consumers just don’t switch and continue to get a bad deal.

See our report Get it, together

Further information (external sites)

http://www.decc.gov.uk/en/content/cms/funding/collectpurch/collectpurch.aspx 

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=151&refer=Markets/RetMkts/Compet

By exercising their individual choices in this way, consumers would drive competition between providers and realise the benefits of a competitive market: better value, better service and innovation. However, experience has shown that, for the most part and despite clear frustrations, consumers do not conform to this expectation.

We now live in a world where consumers are connected to each other and active within and across a range of social networks. In some instances they are already working within these networks to be better empowered and achieve better outcomes in the marketplace.

The mystery shopping survey found that almost half of advisers (44%) gave the wrong answer or couldn’t give an answer, when asked how to cancel a CPA. This lack of clarity from the banks makes it difficult for consumers to know their rights around CPAs, which could be leading to payments being taken without the customer’s knowledge or consent. 

A CPA is a type of regular automatic payment arrangement set up using a debit or credit card. Similar to a direct debit, consumers give a supplier or retailer permission to take payments on their card. CPAs are favoured by many businesses, including payday loan providers, gyms, insurers, magazine companies and internet service providers.  The timing and amount of the payment may vary. A CPA may also be called recurring payment authorities, recurring transactions or recurring payments.  

Consumer Focus undertook mystery shopping among nine leading retail banks in order to test customer advisers’ awareness of how consumers should go about cancelling a CPA. The correct answer would have been to cancel the CPA through the bank, while also advising the supplier or retailer that the CPA was being cancelled¹.  

The survey found only 56 per cent of customer service staff gave a correct answer, 44 per cent got it wrong or could give no answer at all². Worryingly, 28 per cent of customers were told they could only take their query to the company which had set up the CPA, which is contrary to Financial Services Authority guidance. 

Sarah Brooks, Director of Financial Services at Consumer Focus said:

‘CPA’s are a frequently used but little understood form of payment. Problems with cancellations are leaving consumers going overdrawn or paying for something they no longer want, which is unacceptable. Customers are naturally not experts on this payment method, so it is essential bank staff know the rules and give clear and accurate advice. 

‘Consumers should be clear that they can cancel a CPA simply by contacting their bank. Ideally the customer should also contact the business involved– but crucially they do not need the company to cancel the CPA for them.’ 

Some of the difficulties consumers face with CPAs include:  

•  Being passed between the bank and business, with neither taking responsibility for cancelling a CPA. This can leave the consumer feeling their only resort is to cancel the payment card used 
   
• Businesses are using CPAs to take additional charges over and above the payment for products and services being subscribed to, e.g. fees for debt recovery
   
• Cancelled CPA payments are being taken on a cancelled card and debited on a new card linked to the same bank account, without the customer’s permission.
   
• Consumer confusion over what has been consented to, particularly as agreements are made with no paper record of what was agreed and the terms are not obvious to the average consumer. This has been a particular issue with shopper discount and savings websites.³

It is particularly important for consumers to contact their bank if they have any trouble contacting the business concerned or are in any doubt as to whether the company will carry-out the cancellation. Consumers will still need to pay any debt that is outstanding, but the company cannot require the customer to pay this through a CPA. The watchdog would also encourage any customer given the wrong advice about cancelling a CPA to log a complaint with the bank concerned.

To improve the problems consumers are facing with CPAs, Consumer Focus is calling for measures including: 

• Clear and accurate information to be given to customers on CPAs, from bank customer service staff and on websites, especially around cancelling payments
   
• This advice must also make clear that any money taken from the customer’s account after the CPA is cancelled should be immediately refunded to the customer by the bank⁴

ENDS

Notes to editors:

1. Consumer Focus conducted mystery shopping among nine UK retail banking providers (Santander, Barclays, HSBC, Lloyds TSB, Halifax, Bank of Scotland, RBS, NatWest and Nationwide). In all 308 contacts were made: 126 by telephone. 127 face-to-face at a branch and 55 by visiting a website. 
     
2. The question asked was: ‘If I set up a monthly payment via the internet to a gym, using my debit card, I’ve been told by my partner that would be something called a “Continuous Payment Authority”.  If later I want to stop that do I contact the bank or do I have to contact the gym?’ There are several correct answers which are: contact both the gym and bank; contact the bank; contact the bank but ideally also the gym. A fourth answer would probably enable the customer to cancel their CPA correctly but not necessarily guarantee it: contact the gym but also ideally the bank.              
                                                                         
   • Contact the bank (but ideally also the gym)                   27%                 Correct
   • Contact both the bank and the gym                              11%                 Correct
   • Contact the bank                                                          7%                 Correct
   • Contact the gym but ideally also the bank                     11%                 Correct          
   • Contact the gym                                                        28 %                 Incorrect
   • Cannot find an answer after 5 minutes web search         11%                 No answer
   • Other answers                                                              5%                 Incorrect   
          
     Consumer Focus will be sharing this research with the Financial Services Authority which regulates the Banks and with the Office of Fair Trading, which is responsible for regulating consumer credit.
      
3. Consumer Focus Investigations has been looking at this market, including companies using the trading names of Rewards First and  Shopper Discounts and Rewards, and has already raised concerns with the OFT. Consumer Focus is aware of consumers signing up to what they thought were one-off discounts or offers on a leading retail website (e,g, £10 of a purchase) without realising they were entering in to a monthly subscription agreement operated by a third-party such as Shopper Discounts and Rewards. Consumers reported only being made aware of this when money was debited from their current or credit card account at a later date. Consumer Focus is concerned that consumers could be misled because the details or Terms and Conditions provided were not clear and many of those who have complained report never receiving the confirmation and follow-up emails after they accepted the money off voucher. 
    
4. Where a supplier keeps taking money out of an account after the CPA has been cancelled the bank must immediately refund the consumer. The bank can then pursue the supplier for reimbursement of this money. 

Giving consumers more information and advice has not been enough to cut through the confusion and complexity they face when trying to switch in these markets. Together with understandable concerns that they may not get a better deal, this means many consumers just don’t switch and continue to get a bad deal.

But, a new approach is now possible which could shift the balance of power from suppliers to consumers. The rise in social media technologies has made it dramatically simpler for people to get better deals without having to do all the legwork themselves.

Director of Empowered Consumers at Consumer Focus, Richard Bates, said: ‘This could be a great way to make consumers more powerful in some really important markets. It could cut through the confusion and complexity that prevents people switching and offer consumers a simpler route to better value.

‘In effect, collective switching has the potential for an intermediary, working on behalf of consumers, to turn inertia from something that works against consumers into a force that works for them. At the very least collective switching will hold a mirror up to these markets, show why consumers are turned off and why the opportunities of social media and collective action shake up our assumptions about how consumer power can transform markets.’

Edward Davey, Secretary of State for Energy and Climate Change, said: ‘Collective purchasing could be a powerful way of rebalancing the relationship between consumers and suppliers in a range of different markets.

‘Our energy market is a really good example, where schemes which enable people to club together in this way could help consumers get a better deal for their gas and electricity, cut out the hassle of shopping around and switching, and boost competition so that suppliers work harder for your business.

‘I am very excited about the potential for this in the UK and I welcome the work Consumer Focus is doing on this. We are working to remove barriers to getting new collective purchasing schemes up and running and I want to see suppliers engaging positively with these initiatives.’

It is now possible for an intermediary to convert the demands of consumers and combine them into a big enough slice of market share that companies are unable to ignore. This uses the positive market power to source an improved deal for consumers. The real potential for collective switching is where all consumers have a constant need for the service, but where engagement in the market is limited to an active minority. Collective switching goes with the grain of this inertia and offers consumers the prospect of better outcomes for less effort.

Successful initiatives in mainland Europe have already demonstrated the benefits that collective switching can deliver for consumers:

• More than half a million consumers in The Netherlands, Belgium and Germany have registered with the iChoosr collective switching programmes for gas, electricity and heating oil.
   
• The average savings iChoosr has achieved per individual household is €200 to €250 for a dual fuel energy contract. The winning bid has represented an improvement on existing tariffs for 95 per cent of participants.
   
• Dutch consumer champion, Consumentenbond, has managed two collective energy switches with 57,000 people switching to a better deal in the Netherlands
   
• The first high profile initiative here launched by Which? and campaigning website 38 Degrees has attracted more than a quarter of a million consumers.
   
• Community Interest Company, thePeoplesPower.co.uk, is also recruiting consumers for a collective switching initiative in the GB energy market.

ENDS

Notes to editors:

1. Consumer Focus’s report, Get it, together can be found at http://bit.ly/IdpP6y.
    
2. Figures quoted for collective switching in Europe Figures were provided to Consumer Focus by iChoosr, or taken from its website http://bit.ly/GIMjsP, and from Consumentenbond Energiecollectief http://bit.ly/IUYcTf  

Making data freely available for everyone to use presents many opportunities. It can support organisations working for change by providing high-quality, accessible information. It can support advice and advocacy organisations delivering services, and, perhaps most importantly, through the delivery of digital applications it can support individuals directly. For example open data has been used to create map and public transport apps.

At an organisational level open data is already changing the way we work. Organisations that used to rely on Freedom of Information (FOI) requests to access routine information can now expect that information to be readily accessible when they need it. If it’s not yet released, they should know how to press dataholders for it.

At our workshop in March people told us open data ‘reduced the friction’ in relationships with dataholders, creating new information ‘ecologies’ that are easier for people to access. As it’s less time-consuming than making an FOI request, it means people can spend less time chasing organisations for data and more time doing something productive with it.

Where data isn’t released it might be because it isn’t collected or retained in the first place. These gaps in data can often tell just as powerful stories as the data itself, exposing shortcomings in data collection and management by dataholders. For example, a lack of data on specific expenditure on particular client groups might imply a low priority, a lack of strategic planning, or even that they’re trying to hide something.

At our event From broadcast to conversation we asked people what they thought open data would mean for their organisations, and captured some of their responses in the video below.

Read my previous blog on open data.

‘From today, consumers will have to decide whether the increased price of stamp is going to change their posting habits. We have welcomed a cap on second class large letters and small parcels as it will help soften the blow of stamp price rises for vulnerable consumers and small businesses.’ 

‘The economics of Royal Mail meant that something had to give to keep the six day delivery Universal Service Obligation. Consumers will have to pay more to put Royal Mail on a more sustainable footing. But the onus shouldn’t be all on consumers. Royal Mail knows that it cannot just rely on price rises to make a better return but must also deliver greater efficiencies throughout the entire business.’

ENDS

‘This report raises a number of important questions about how competitive our energy market actually is and whether consumers lose out as a result. There are many improvements which can be made to this market, but a good start would be to ensure that smaller suppliers can compete with the Big Six on a level playing field. Customers also need to know that suppliers are really competing for their business by passing on efficiencies and wholesale cuts, as well as ensuring customer service is first rate.  We need a market that serves everyone not just a minority of pro-active switchers.

‘We have long held concerns that the energy market needs to do more to increase competition and demonstrate prices are fair. If suppliers are unwilling to do this, then we would call on Ofgem to intervene to ensure consumers are getting a good deal.’

ENDS

‘Consumer Focus research indicates that consumers, particularly those who do not have access to the internet, continue to rely on mail as a vital means of communication. Ofcom’s own figures suggest that half of the average weekly spend on post is on large letters and small parcels. A cap is to be welcomed as it will help soften the blow of stamp price rises for vulnerable consumers and small businesses.’

ENDS