A Consumer Focus Scotland study exploring the attitudes of disadvantaged consumers to switching energy supplier has found that many currently struggle to even understand their energy bills and believe that there are too many barriers to switching.
Switching Off: Attitudes to switching energy suppliers among disadvantaged consumers was commissioned after earlier Scottish Consumer Council research found that Scottish energy consumers were less likely to switch than those in other parts of Britain. Research commissioned by the energy regulator Ofgem has also found that a significant minority of those who do change their supplier, do not actually benefit from having switched.
The study used focus groups to explore the views and concerns of disadvantaged consumers, including older people, those on low incomes, lone parents, people with learning disabilities and members of Black and Minority Ethnic (BME) communities.
Key findings included that disadvantaged consumers:
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Are having difficulty understanding their energy bills and in monitoring how much energy they use.
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Face problems contacting energy suppliers, with automated telephone lines highlighted as a particular problem.
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Find that paying for energy is a significant part of their household costs.
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Are commonly using pre-payment meters, a more expensive way of paying for energy.
On issues around switching energy supplier, those surveyed said that:
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Cost savings were the main incentive to switch, but this was usually a reactive rather than proactive decision.
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They were likely to stay with current suppliers for reasons of inertia, uncertainty and anxiety, lack of trust, loyalty or negative experiences of doorstep selling.
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If they did decide to switch supplier, they were faced with a significant range of barriers including lack of independent and accessible information; difficulties making comparisons; pressure from existing suppliers to reconsider; and unexpectedly high charges from existing suppliers to switch.
Trisha McAuley, Interim Director, Consumer Focus Scotland, said:
“Consumer Focus Scotland believes that effective switching can deliver real benefits to individual consumers and the energy market as a whole by increasing competition. But this research highlights that those who might most benefit from switching energy supplier are currently least likely to do so. The significant barriers that exist to switching mean that many decide to stick with their current supplier, rather than seek a better deal elsewhere.”
“In this time of recession, more needs to be done now to enable and empower those who are most disadvantaged to access cheaper energy bills and to encourage energy suppliers to be more responsive to consumers’ needs.”
Ends
Notes to Editors
Switching Off: Attitudes to switching energy suppliers among disadvantaged consumers is available at www.consumerfocus.org.uk/scotland/publications-reports
The 2008 report, Making Markets Work for Consumers in Scotland – Everyone Benefits, published by the Scottish Consumer Council, one of Consumer Focus Scotland’s predecessor organisations, is also available on the Consumer Focus Scotland website.
An overview of the Ofgem research on energy switching is available at www.ofgem.gov.uk/markets/retmakts/ensuppro/pages/energysupplyprobe.aspx
Consumer Focus Confidence Code – Consumer Focus has accredited several Price Comparison websites through its Confidence Code. Details of the Code and accredited sites can be found at www.consumerfocus.org.uk/en/content/cms/Energy_Help___Advice/Energy_Help___Advice.aspx
Consumer Focus Scotland is rooted in over 30 years of work promoting the interests of consumers, particularly those who experience disadvantage in society. We work for consumers in aspects of their lives: as council tenants, householders, patients, parents, solicitors’ clients, public transport users, bank depositors and borrowers, postal service users and as shoppers.
Media Contact
To arrange an interview or for more information, contact Ryan Norton, Communications Manager on 0141 227 1852.
To arrange an interview or for more information, contact Ryan Norton, Communications Manager on 0141 227 1852.