“Over 60s missing out on energy switching”
04/04/2008
A new report from energy regulator Ofgem reveals that UK energy switching levels hit five million in 2007 - but that whole groups of customers are missing out. In particular, pensioners, unemployed and low-income families are not switching to lower tariffs.
Online plans are on average £187 or 18% a year cheaper than standard plans and £218 or 20% cheaper than pre-payment meter tariffs, but less than 1 in 5 (19%) consumers are on an online energy plan – meaning that 16 million households are failing to protect themselves from impact of higher prices.
Tim Wolfenden, Head of Home Services at comparison website uSwitch.com said: "An increase in switching has got to be welcomed, but cannot be taken in isolation as proof that all is well in the energy market.
"The biggest concern is that those who could benefit from switching most are the ones who are missing out - our research shows that over two thirds (69%) of the over 60s have never switched. It looks like Ofgem will be trying to address this by working with third parties such as Citizen's Advice.
“But, perhaps more thought needs to be given to how the market communicates with consumers, especially the vulnerable. There are some great energy deals out there, but many potential switchers may be put off because these deals are labelled ‘online’ - more needs to be done to explain these and make them accessible to as many groups as possible.
“We have the makings of a really good competitive market, but we still have some way to go before we can say that all consumers are benefiting.”
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