I was recently stuck in a hospital waiting room watching delightful morning television, when I happened to catch Martin Lewis (the money saving expert) discussing the importance of householders changing energy suppliers to get better rates on their bills.
Just by doing this, he claimed he was getting a better price, for boiling his kettle than a 80 year old pensioner, due to the fact that he reviewed his deal and switched to a better one and stressed the importance of switching.
So how beneficial is switching and what are the ways people are switching?
I mentioned in a recent article the local initiative – Community Energy Direct, where people who signed up were estimated to save on average of £171.
Unfortunately this offer has ended now but it does illustrate the point of how powerful switching energy suppliers is. And considering that is the average some probably saved a lot less, but on the upside some people probably saved a lot more!
And it is alarming on research to find that 47% of households have never switched energy company. This means that there are a lot of potential savings to be made.
I also feel bringing energy switching into your lives is important to try and make energy companies slightly more accountable so that better prices can be offered – after all they are supposed to be in competition with each other.
Why do people not change?
With the amount of choice we have, why are people not making a change for a better deal? From my own experience and research there could be a number of reasons:
The right to choose
When I was a student I was surprised when one of my more savvy housemates had changed energy suppliers to get a better deal. As we were in a rental, I assumed like the colour of the walls this was something we couldn’t change.
I do wonder how many other people think the same because they don’t own the property.
Apathy
With our busy lives, worrying about the cost of the energy bill may be a minor problem, however we do worry about the prices of other things – food, petrol, a pint. Therefore what is the barrier that stops us finding a better energy deal?
Loyalty
There is also the element of loyalty, we stick with what is familiar perhaps we are satisfied with the service and do not want to risk the unknown.
Loyalty is an important element, which British Gas use as justification for higher prices saying other important factors such as customer service making the difference.
(Incidentally after a quick Google search on ‘British Gas Customer Service reviews’ I soon found what people thought of the service they paid extra for here and here and they only got a Customer Satisfaction of 50% from Which AND something from BBC Watchdog.
Other factors
There are probably a number of reasons people don’t switch such as not being capable, being overloaded with too much choice, unable to access resources to make the change, assuming that the price is the going rate across the industry or not understand the terminology used in billings means that a number of people will not change.
What are my options?
Basic switch
A basic switch is just changing one energy company to another. The popular method is using a price comparison site to find a better deal.
Collective Action Switch
As mentioned, their is the Community Energy Switch Program, which is a bit like a basic switch with a large number of people working together with an organisations such as Which to negotiate a better deal.
I assume the theory is that a better deal can be offered due to signing up a number of new customers.
Community Energy Co-op
Community Energy Co-ops are owned by the community, using renewable energy, helping bring people together and creating a source of renewable energy that is accessible and affordable.
The obvious disadvantage is the time, resources and commitment to get such a project off the ground, but once in place these offer savings, clean energy and a source of energy that does not rely on the Big six.
And according to Rough Guide, doing it this way can address a number of issues such as ‘climate change, rising energy prices, economic austerity and dwindling social cohesion’.
Why make a change?
I feel which ever method you decide to use other an element of empowerment, even if it is just changing suppliers as it’s a simple way of saying your not going to accept what is being offered.
For energy savings it seems like a logical first step to take, before looking at household energy saving investments such as the Green Deal.
And as seen it seems energy companies don’t reward loyalty with better prices it makes sense to change on a regular basis as required.
I also encourage you to help others whether it is taking an interest in a relative, friend or neighbour and encourage them to switch so that they could potentially save a few quid.
Finally this article does not suggest that switching energy suppliers is a viable method to get people out of fuel poverty, but until more support is available it may be one way of trying to help individuals on the issue.
Written by James of Leeds Fuel Poverty Action, all thoughts and opinions are his own.
Related blogs
Zero Carbonista: Why do people switch energy supplier?
UK Power: “Use price comparison sites to beat rises” – energy minister
Flow Energy: How much do supermodels save by switching home energy?
Virtual Lancaster Dot Net: Local People Power energy switching project takes to the road
My Utility Genius: Collective Switching
Useful Links
Community Energy Coop
Brixton Energy
Bristol Energy
Rough Guide to Community Energy
Price Comparison
Which – find out more about your energy suppliers
Money saving expert Cheap Gas and electricity guide
Moneysaving expert Cheap Energy Club
Tags: Customer satisfaction, Energy, Energy Direct, Energy industry, Energy market, Energy savings, Environment, Martin Lewis, renewable energy, What can I do
Although we welcome the opportunity for housing in Leeds to become more energy efficient, we obtain a healthy cynicism particularly due to concerns whether the deal reaches the most vulnerable people suffering from Fuel Poverty in Leeds.
Leeds Fuel Poverty Action 