uSwitch.com: Utilita 12 month energy contract

Tim Wolfenden, Head of Home Services at comparison and switching service uSwitch.com comments on Utilita’s move to offer a long term (12 month) energy contract: “When Ofgem finally removed the 28 day rule last month it allowed suppliers [outside of the trials that have been running for the past two years] to develop new, innovative contracts which enables them to provide consumers with significantly cheaper ‘home energy service’ products to save them money and energy, such as loft insulation and new boilers.

“Utilita were, when they first entered the market place two years ago, seen to be innovators in offering extended energy contract terms – they led the way whilst the majority of their larger competitors operated smaller trials. Second time around, after re-entering the market earlier this year, their offering seems to be lacking in substance and real customer value.

“The removal of the 28 day rule was not designed for opportunistic suppliers to market long term contracts with little or no perceived benefits. We would be very concerned if more suppliers took advantage of this change and introduced long term, value free deals such as this.

“Consumers should be looking to squeeze as much value out of their energy suppliers as possible and if they are being asked to sign up for a compulsory 12 months, as they are in this case, then there should be something extra in it for them.

“Customers need to be aware of what they are getting themselves into. There are a lot of competitive deals out there which have no lengthy tie-ins – offering better value and the option to switch away should they want to.”