With the onset of colder weather we thought it would be a good opportunity to talk about three core issues relating to fuel bills. Peter Owen, Chief Executive of Energy Projects Plus is offering three short pieces – Insulate your fuel bills, Insulate your home, and Illuminate your family and friends – hoping to create both discussion and action to tackle these issues.
Watching the news and listening to interviews on radio and television you could get the impression that despite the fury about recent fuel price rises a lot of people feel trapped in their fate of paying more or indeed that they think it is not worthwhile switching.
When listening to their comments I wonder if they have checked to see what they could gain from switching or whether their view is based on assumptions and things they’d heard but which were not necessarily relevant to their own situation.
1 in 6 households have switched tariff in the last year1 and are enjoying the benefits of being on competitive tariffs. Additionally, there are people who checked to see if switching was worthwhile for them and decided that they are happy with their current supplier and tariff.
These people have taken steps to reach their best possible position regarding fuel prices and everyone is being actively encouraged to join with them and not be resigned to paying more than necessary.
Unfortunately, over 40% of people have never switched supplier or tariff2. There are many well-documented reasons for this including:
- Lack of confidence in their ability to compare tariffs offered
- Concern that they will be lost in the system and end up worse off
- Assumption that it is not going to be worth it financially or will be too much hassle
- They are not able to access the advice and support appropriate to their needs
It is this group of people who are likely to benefit most from comparing their current tariff against offers from other suppliers and even their current supplier. It is this group of people who also need more persuasion and support to overcome whichever barrier they face to taking that first, exploratory, step of comparing their prices. Maybe we could call them reluctant switchers.
On Merseyside earlier this year we and our local authority partners started a programme to encourage and support everyone, but particularly our reluctant switchers, to take that first step of comparing their prices.
Our first round of activity in June saw over 4,600 residents compare their prices, and those who decided they wanted to go on and switch their supplier collectively saved an estimated £76,000. That is £76,000 released back into the local economy and available to meet other important household costs.
With the arrival of autumn and within the current furore/worry around price increases we have launched our second campaign.
The key message of the campaign is check now and switch if you gain.
You don’t need to save a lot to make it worthwhile – why overpay for something so important if there is a better alternative. Why give your valuable money away to your supplier when you can better use it to pay for other essentials?
If you check and find you don’t gain then you are in the best possible position for the winter. If you check and could save even a small amount then you should seriously consider switching since it is only by voting with our feet that we send a message to the suppliers.
The importance of affordable fuel has been extensively covered in the media and a range of alternative long term actions promoted across the political parties. However, the issue is stark in the here and now. Merseyside still has one of the highest levels of fuel poverty across the country.
Here and now is the opportunity to check if you can reduce the amount you pay for essential warmth and light. It is also the opportunity to send a message to suppliers that price increases are not something that they can introduce without risking losing customers.
Voting with our feet together is one of the few ways we can challenge the perceived complacency of the fuel suppliers and by doing it collectively we can provide support and inspiration to those reluctant switchers who need it most.