Tag Archives: prices

Press Release: Money doesn’t always buy you the best energy supplier, warns Citizens Advice

Ahead of Ofgem’s price cap increase, the latest edition of the Citizens Advice star rating (http://bit.ly/CitizensAdviceStarRating) – which ranks domestic energy suppliers on customer service – reveals that money doesn’t always buy good service.

Citizens Advice analysis shows expensive doesn’t always mean good and cheap doesn’t always mean bad. Of the 20 cheapest deals with energy suppliers, only five tariffs are with suppliers in the bottom third of the star rating table, whereas 10 tariffs are with suppliers in the top third.

With the energy price cap having been increased by £96 to £1,138 from 1st April 2021 for default tariff customers, the charity is encouraging people to consider switching suppliers to get a better deal. Doing so could save an average household up to £200 a year and secure a supplier with better customer service.

Citizens Advice research shows that nearly a quarter of energy customers – equivalent to over six million households – are worried they’ll struggle to pay their energy bills because of the pandemic. With bigger winter bills arriving in the coming weeks for many customers, it’s critical that people are able to easily access support from their supplier. The charity is calling on poor performers in the star rating table to improve their customer service – including tackling billing errors and difficulty in contacting suppliers.

Nicky Willshere, Chief Officer at Citizens Advice Ipswich, said:

“At a time when so many people are facing job losses and financial trouble, it’s unacceptable that energy bills are another source of stress. With the rise in the energy price cap, many will have to pay more and rightly expect a decent service. Suppliers must step up to give their customers what they deserve.

“Everyone should consider whether they are getting value for money from their supplier – paying more doesn’t always mean you will receive a better service. Don’t put up with it if it’s not good enough. Shop around if you can.”

Case Study:

A dad-of-two started receiving high energy bills when the family moved home in May last year, but his energy company didn’t respond when he tried to question the amounts.

He said:

“In October, I got a bill for £3,000 too much. I contacted the Citizens Advice consumer service and they helped me put in a formal complaint. The bill was sorted and everything was okay.

“Unbelievably, in January this year, another bill came for £650. I was so shocked. I have been contacting the company since January and no one has called me back or replied to my email.

“I’m so frustrated at the amount of time I’ve spent chasing, and nothing has been done. I thought it had been resolved.”

Press Release: Price control is a win for consumers, says Citizens Advice

Citizens Advice has responded to today’s announcement by Ofgem about the next price control for local electricity networks (DNOs), known as RIIO-ED2.

Nicky Willshere Chief Executive of Ipswich Citizens Advice, says:

“In the face of appeals by other energy networks over their price control, Ofgem has stood its ground by continuing to limit shareholder returns. This is a win for consumers. Energy networks have made billions in excess profits during the current price control and it is vital this isn’t repeated.”

Background

Citizens Advice research (http://bit.ly/EnergyConsumersMissingBillions – July 2017) showed that energy network companies were able to overcharge energy customers by £7.5bn during the current RIIO-1 price controls.

Citizens Advice previously established five principles (http://bit.ly/CitizensAdviceRIIO-2Frameworkconsultationresponse) which it believes need to be met if the RIIO-2 price controls are to deliver for consumers.

Price cap rise will be ‘heavy blow’ to household finances already hit by Covid

From 1 April 2021, Ofgem will introduce a new increase in the energy price cap, which will see it increase by £96 for default tariff customers, and by £87 for pre-payment meter customers.

According to Ofgem, default tariffs and pre-payment meters are already some of the more expensive energy options, and research shows that pre-payment meter customers are more likely to be living in fuel poverty.

However, Nicky Willshere, Chief Executive of Citizens Advice Ipswich, adds that this rise not only comes during a “tough jobs market and essential bills rising”, but also the rise will come “at the same time as the £20 a week increase to the benefit is set to end”. The £20-a-week increase to Universal Credit and Working Tax Credit is set to end on April 5.

To visualise the twinned effect of the price rise and the cut to the Universal Credit boost, the £20 uplift would cover nearly a whole week (six days) energy costs for a below average income household.

Indeed, in December, Citizens Advice research showed that 2.1 million households were behind on their energy bills, 600,000 more than in February 2020. That was with the reduced energy price cap and the £20 uplift. This could affect many of our clients, because since 1 March 2020, Citizens Advice has supported more than 350,000 people with Universal Credit.

As such, Nicky Wilshire argues that “now is not the time for the government to cut this vital lifeline”.