Energy News

Energy companies failing vulnerable Welsh

Thursday 29 January, 2009

By becca.talbot@consumerchoices.co.uk

Some of the most vulnerable people in Wales are at risk of debt because their energy suppliers are not doing enough to help, warns consumer watchdog.

Many people in Wales are still missing out on the benefits of competitive pricing despite the deregulation of the energy market nearly 10 years ago, according a report by energy watchdog Consumer Focus Wales.

Viv Sugar, chair of Consumer Focus Wales, said some customers in Wales face serious drawbacks: “People are more reluctant to switch to a new supplier, with many people remaining loyal to their original supplier prior to deregulation. This means they could be paying more for their energy than customers of other utility companies operating in their area.”

Reasons for not switching suppliers included limited internet access in parts of Wales, making it harder for customers to compare prices or get access to cheaper online tariffs.

Consumer Focus Wales recorded 67 new cases from vulnerable people in Wales seeking help with their energy bills since October last year.

These cases included parents with young children having their gas supply cut off; a customer having debt repayment rates set “unrealistically high,” despite being on benefits, and a customer unable to open an account because of a disagreement between a new and previous supplier over meter readings.

Dual fuel discounts are unavailable to many customers in Wales. “One in five people are ‘off grid’ when it comes to gas,” said Sugar. “Because they are electricity-only customers, they cannot take advantage of dual-fuel discounts.”

The number of prepayment meter customers in Wales is above the UK average, with around 222,000 electricity and 140,000 gas customers.

Sugar said: “Regulator Ofgem found evidence of unjustified price differences for prepayment meter customers. While prepayment meters tend to be viewed as a way of managing customer debt, only 17% of customers are currently in debt with their suppliers.”

Consumer Focus Wales has called for fairer pricing and tariff structures, including mandatory minimum standards for social tariffs.

Chris Eagle, commercial manager at EnergyChoices.co.uk said: “The energy giants need to find a balance between being businesses and responsible energy suppliers. As a business they are managing the way that debts are recovered, but these are often not the best-suited methods for their customers, and people are left struggling.”

He continued: “For those customers who have internet access, you can save money by changing to an online tariff, and by paying by monthly direct debit. For those that don’t, there are ways to make savings without switching supplier.”

Compare energy tariffs >>>

Energy efficiency guide >>>

Compare energy prices and see how much money you can save.
Compare energy prices