A new code of conduct for heating fuel suppliers could go a long way to tackling some of the disadvantages faced by people whose homes aren’t connected to the Gas network, according to Wales’ leading consumer organisation.
New research by Consumer Focus Wales shows that people who live off the gas network face higher costs for heating their homes, and consequently higher levels of fuel poverty. This is particularly true for those on low incomes.
Most use heating oil as their main fuel, which can only be delivered in bulk and the cost can fluctuate sharply. According to the Department for Energy and Climate Change, 16 per cent of Welsh properties are off-gas compared to 9 per cent in England1.
Ceri Williams, Senior Policy Advocate at Consumer Focus Wales, said: “The impact of the economic crisis means the number of households in fuel debt is on the rise, and our survey found that fuel debt and a failure to re-stock coal or LPG supplies is a real problem for some consumers.
“We would like to see oil, LPG and coal suppliers taking more action to help their customers manage their bills through debt management plans and more flexible payment options. We would also like to see the industry introduce a code of conduct, to raise levels of competition between suppliers, and the level of service customers can expect to receive.”
Many off-gas consumers live in rural areas in older, poorly-insulated homes, which cost more to heat. These factors – combined with the often higher costs of alternatives to gas, mean that off-gas consumers are more likely to be in fuel poverty than their on-gas counterparts.
Homes heated by heating oil, LPG or coal have fewer legal protections than those heated by electricity or gas. Electricity and gas suppliers are regulated by Ofgem and are subject to conditions regarding the treatment of consumers around pricing, marketing, debt and disconnection, whilst off-gas consumers do not have these protections.
Some of these issues could be addressed by a code of conduct among suppliers.
Although the research found there was a high level of interest among consumers in connecting to the gas network, very few are willing to spend the necessary amounts (around £6,000) to connect and install a new boiler. The research also found evidence to show that off-gas consumers have a greater interest in micro-generation, like solar panels and heat pumps, for their homes.
With governments in Cardiff Bay and Westminster keen to promote micro-generation, this finding could prove valuable for policy makers in this field. One in three off gas consumers expressed an interest in micro-generation. For on gas consumers the figure is just one in five.
Notes to editors:
600 consumers were interviewed on behalf of Consumer Focus Wales from January – February 2010.
The report – Off-Gas Consumers and Microgeneration – will be launched at the Royal Welsh Show on Tuesday 20th July at 11am. The event will feature a panel discussion with Environment Minister Jane Davidson, Consumer Focus Wales Chair Viv Sugar and James Lambert of the Solid Fuels Association.
Consumer Focus Wales is calling on the Office of Fair Trading to introduce an industry agreed code of conduct on price transparency and customer service.
The report found that switching rates for off gas consumers are 20% lower than for mains gas consumers.
The full report will be available at http://www.consumerfocus.org.uk/wales/publications
