Too much delay when switching energy supplier
According to research conducted by First Utility, speed and complexity of switching are the main factors putting consumers off, with 35% of those surveyed saying they would be more likely to switch if the process were quicker. It is thought that if a third of the population did switch, it would save the UK £1.5bn per year
A recent survey by Which? found that customers who switch suppliers can save an average of £217 a year.
First Utility says switching supply is relatively simple, no one needs to visit the house, the gas or electricity doesn’t change, and there is no risk to supply. As such, it shouldn’t take so long to switch.
The campaign has attracted support from the founder of letsavesomemoney.com, Sarah Willingham.
“The energy industry needs to make changes to deliver much needed benefits for consumers," says Willingham.
“First Utility’s Fix the Switch campaign is a great step to show that customer feedback is being listened to. We all know we can save by switching suppliers, but it can sometimes feel like too much hassle. Taking the stress and timewasting elements out of the equation will make a huge different to household bills across the UK."
Ian McCaig, CEO of First Utility, comments: “If we get 100,000 people to sign our petition, this will get debated in parliament and the industry will have to take note. A quick and easy energy switching process would deliver genuine cost-saving benefits by encouraging more people to benefit from better energy deals.
“The Energy industry needs to follow the example set by the telecoms and banking sectors."
Which? Executive Director Richard Lloyd says:
“Rising energy prices are consistently one of the top worries for consumers, yet we’ve found people are so bamboozled by the vast array of tariffs that consumers are paying a staggering £3.9bn a year more for their energy simply by not being on the best deals.
"Now is the time for bigger, better reforms if we are to help consumers struggling with spiralling energy prices and squeezed household incomes.”
Ann Robinson, Director of Consumer Policy at uSwitch, has welcomed the news, but warns that consumers must be protected.
“It’s important that no corners are cut that could harm consumers. Switching energy suppliers needs to be as simple and streamlined as possible but the ‘cooling off’ period is vital as it gives consumers confidence and allows them to change their mind before the switch goes through.
"If Ofgem can ensure that consumers enjoy this current level of protection as well as a quicker switch then we could see an extremely positive development in the energy industry.”
First Utility’s ‘Fix the Switch’ campaign is online: www.fightthepower.uk.com
