Utility Week

Customers This week Co-operative energy boss says switching sites add "hundreds of millions" of pounds to bills Switching sites 'add to customers' bills' Switching sites are adding "hundreds of millions" of pounds a year to consumers' energy bills, according to the boss of the Co-operative Energy. Group director at the Co-operative Energy, Ramsay Dunning, said the commission charged by a number of switching sites is going Uswitch.com: 'cheap method for suppliers' out of the industry and could be adding up to £8 to a customer's annual energy bill. Speaking to Utility Week, he said: "The commission they charge collectively is a lot of money going out of the industry's purse, and if it is borne by industry then it ends up on the customers' bills." Dunning added that as a response to this, the Co-operative Energy has been coming off some comparison websites and he proposed that the suppliers come together to create a "not-for-profit information service and comparison site" run by an impartial organisation. He said this new organisation would "serve the public and drive costs out of the industry which would ultimately result in lower bills for consumers" while having the added bonus of rebuilding trust between the public and the industry "as it would be our initiative". However, a spokesperson for Uswitch.com said Dunning's accusations that comparison sites push up the cost of energy were "ridiculous" and "comparison sites are a very cheap method for suppliers to acquire new customers in a fair and unbiased way". They added: "The fact is that Ofgem-accredited comparison services such as our own are part of the solution and to suggest otherwise is an absolute nonsense." MB Water London tenants overcharged by £38k An investigation by the Local Government Ombudsman (LGO) has found that the London Borough of Hammersmith and Fulham overcharged 58 tenants by more than £38,000 on their water bills between April 2008 and March 2013. The LGO found the council had been charging residents more than it had paid Thames Water for its supply. LGO Dr Jane Martin said she hoped her report would highlight to other councils the importance of complying with the Water Resale Order by clearly explaining to tenants how they calculate their water rates when they demand payment. An unnamed woman who brought about the investigation had complained that the council refused to provide individual water meters even though residents had asked for them. Thames Water, which supported their requests, told Utility Week it always tried to fit a meter when it could and that the case "highlighted the importance of metering and it being a fairer way to pay for what you use". energy Collective switching is more attractive Most consumers would join a collective switching scheme if they were likely to save "any figure that represented a saving at all" according to new research from Consumer Futures. The report by DJS Research said savings of £100 to £300 "would be sufficient" to make most consumers switch suppliers. However, consumers on lower incomes and those less likely to individually switch said they would switch for a smaller saving, such as £50. The study said consumers were more likely to switch using a collective switching scheme because this option "appears less hassle than switching individually and may be worth it even if the saving is not massive". energy Half of smart meter homes have saved More than half (54 per cent) of households that have a smart meter installed have seen their energy bills fall, according to research by British Gas. The study revealed 64 per cent of those that had recorded a saving had cut their annual energy bill by up to £75. It also said nine out of ten smart meter customers are now taking "simple steps" to reduce their energy usage. British Gas smart metering managing director Stuart Rolland said: "By seeing how energy is used through the home, you can make small changes that save you money." I am the customer Richard Lloyd Every year, we ask people to rate their energy suppliers. Our findings are always a useful indicator of what's happening with the market overall. The results from our latest energy satisfaction survey paint a picture of a market that is falling short of its customers' needs, as overall satisfaction has plummeted to a new low of just 41 per cent. This is one of the lowest average scores for consumer satisfaction out of all the surveys Which? produces. "Consumers are the biggest losers in a failing market" Once again the smaller, independent energy firms have beaten off competition from all the major players. In fact, all six of the largest companies occupy the bottom of our table. So who are the winners and losers? For the third year running, Npower has scored the lowest, with just 31 per cent, followed by 26 | 31st January - 6th February 2014 | utILIty WeeK British Gas (39 per cent), SSE (41 per cent), Scottish Power (41 per cent), EDF Energy (44 per cent) and Eon (45 per cent). British Gas and Npower fall below the industry average in our survey. Good Energy is in the top spot for the third year running, this year sharing it with Ecotricity on a score of 82 per cent. However, in a failing energy market the biggest losers will always be consumers. That's why it's vital that Ofgem's first Annual Review identifies what needs to change to improve competition and keep prices in check. We believe this won't happen without more radical solutions, including the separation of wholesale businesses from the retail arms of the major energy suppliers. Richard Lloyd, executive director, Which?

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