It cannot be right that poor and elderly energy consumers are often the most likely to stick with an unnecessarily high tariff. Yet that is precisely what is happening.
The country’s top competition watchdog has found that the vast majority of UK households have been paying far too much to the Big Six for their gas and electricity.
More than 95 per cent of consumers could have saved between £158 and £234 a year if they had shopped around — and it tends to be the oldest and poorest shoppers who fail to identify the better deals.
Many do not consider switching to someone offering a cheaper tariff; they may actually think it is impossible to do so.Some good work has been done by this Government to reform the market, for instance halving switching times.
But there is some dispute as to whether or not reducing the number of tariffs has indeed helped poorer customers, while it is obvious that millions remain uncertain about the costs of switching, the bureaucratic complexities and such practical matters as how meter readings can be obtained.
Obviously, a cultural change in attitudes towards energy purchasing is needed. This newspaper is doing its part with the Telegraph Big Energy Switch, designed to help our readers shop around and find the best price.
Some economists suggest that reform could come in the shape of a simple default tariff, indexed to the wholesale price, with a published fair margin. But what will really help is even greater competition. When the energy industry was first privatised and deregulated, prices fell.
Under Labour, however, the market was distorted with green energy targets and monopolies were allowed to developed. Restoring choice, greater publicity about that choice, and above all greater simplicity to the whole process, is the best long-term solution to fuel poverty.
telegraph.co.uk
The country’s top competition watchdog has found that the vast majority of UK households have been paying far too much to the Big Six for their gas and electricity.
More than 95 per cent of consumers could have saved between £158 and £234 a year if they had shopped around — and it tends to be the oldest and poorest shoppers who fail to identify the better deals.
Many do not consider switching to someone offering a cheaper tariff; they may actually think it is impossible to do so.Some good work has been done by this Government to reform the market, for instance halving switching times.
But there is some dispute as to whether or not reducing the number of tariffs has indeed helped poorer customers, while it is obvious that millions remain uncertain about the costs of switching, the bureaucratic complexities and such practical matters as how meter readings can be obtained.
Obviously, a cultural change in attitudes towards energy purchasing is needed. This newspaper is doing its part with the Telegraph Big Energy Switch, designed to help our readers shop around and find the best price.
Some economists suggest that reform could come in the shape of a simple default tariff, indexed to the wholesale price, with a published fair margin. But what will really help is even greater competition. When the energy industry was first privatised and deregulated, prices fell.
Under Labour, however, the market was distorted with green energy targets and monopolies were allowed to developed. Restoring choice, greater publicity about that choice, and above all greater simplicity to the whole process, is the best long-term solution to fuel poverty.
telegraph.co.uk
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