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Confused consumers caught up in energy myths

25th September 2013 Print

With switching levels in the energy industry at an all-time low, recent research from uSwitch.com uncovers the barriers and myths that are preventing consumers from turning their backs on rocketing energy bills or discontent with their supplier.
 
One of the key misconceptions highlighted by the research is that almost half of consumers (46%) are afraid that they will have to go it alone when they switch their energy. Four in ten (38%) believe that switching is difficult and almost one in ten (8%) say that it's too complicated. In reality 85% of those who have gone through with the switch said they found the process easy.
 
More than one in ten (15%) of consumers believe that they may have to pay both suppliers for the energy they've used during the switching process, and with energy bills already through the roof, this worry is understandably putting the brakes on switching. But the good news is that this is not the case and they will only have to pay one supplier for the energy they use. Suppliers pass over meter readings on the day of the switch to stop this from happening. To help this process and ensure they're charged correctly, consumers should make sure they supply meter readings to suppliers on the day of their switch.
 
Another big fear held by 7% of consumers is that they will lose their energy supply during the switching process. It's concerning that after more than a decade of energy switching myths like this still exist. The supply is continuous regardless of who is billing, as the new supplier will contact the existing one to arrange the transfer of supply. Consumers won't notice any change to their service during the switch.
 
In addition, 3% of consumers think that their garden will be dug up to connect to a new supplier and the same amount think that the pipes and wires into their homes will have to be changed. A further 6% believe that switching energy supplier means a new meter will be installed. The truth is that their pipes, wires and meter will all remain and gas and electricity will be delivered to the home in exactly the same way as before.
 
Ann Robinson, Director of Consumer Policy at uSwitch.com, comments: "The evidence is clear - with only 16% switching their supplier last year, millions of consumers are missing out on sizeable savings of nearly £300 a year on their energy bill. With skyrocketing prices and the cold weather creeping in, these savings could be a lifeline for those struggling to keep their heads above water this winter.
 
"Misconceptions are standing in the way of consumers having the confidence to make the market work for them. To bridge the gap between perception and reality we need a strong education programme that lifts the lid on the myths that plague the industry and helps consumers to navigate this notoriously complex and baffling market.
 
"The good news is there are some positive signs that we're heading in the right direction, with DECC having recently announced an initiative to train 500 volunteers to help consumers to compare, switch and save on their energy bills. This should help the most vulnerable to engage, but we have a long way to go before all consumers are making the market work for them.
 
"More also needs to be done to simplify the market as it's clear consumers are crying out for a streamlined process with better guarantees. Ofgem has made bold statements that its retail market review will go far to make the market simpler, clearer and fairer for consumers but the proof will be in the pudding."
 
For more information, visit uSwitch.com.