Energy customers may be paying over the odds
December 24, 2007
According to a recent report energy customers across the UK could be paying way over the odds for their energy usage simply because suppliers keep special, lower cost deals hush hush, which means that the consumer ends up paying more than they actually need to.
The report claims that consumers may be paying out over £2.5 billion a year more than they need to because energy companies are failing to properly promote their cheaper, better deals.
The report was compiled by Moneysupermarket.com and claims that the average household could actually save around £150 a year on their energy bills by switching to a better deal with their existing energy supplier. Officials from the price comparison service want energy firms to make sure that they communicate details of any special deals to existing customers when they are launched so that customers do not miss out on the chance to switch to a better deal.
Paul Schofield, head of utilities at Moneysupermarket.com, stated: “Energy providers rarely, if ever, tell existing consumers about cheaper options, as the more expensive tariffs allow them to offset the great deals they offer. Allowing existing customers to languish on old tariffs is a money-spinner, but it doesn’t help build trust or loyalty.”
He also added: “Banks adhere to a Banking Code, so why can’t energy providers adopt a set of standards to be fair and transparent with their customers when they launch cheaper products?”
An Energywatch official said: “Surely it’s good business sense to try to retain the customers a company already has. If providers introduce new and innovative deals, offering them to existing customers gives them an incentive to stay rather than switch to a separate company.”
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