Are you a 'sticky' energy customer?
Published:
Monday, 6 October 2008, 4:41PM
ITV News consumer editor Chris Choi asks if you are a "sticky" energy customer and, if so, offers some advice on what you can do to avoid paying too much for your energy.
Today I met a very cold 72 year-old, Mary Phillips. She thinks many older customers will die this year because they are afraid to heat their homes properly.
Mary was taking part in a protest against fuel poverty by sitting on a sofa in her dressing-gown on a busy street. What makes Mary's message even more tragic is today’s news that the industry's watchdog believes millions are paying more than they should for heating.
The energy watchdog, OFGEM, has been able to rummage through the energy industry using special investigatory powers. As a result, a bit of insider jargon has come to light.
It seems that more than 40 per cent of us have never switched from the original electricity provider in each area...if you are one of these you are a "sticky" customer. The big thing about being "sticky" is that you are paying more than other customers.
One staggering fact buried deep in today's two hundred and ten page report is that 48 per cent of customers are "sticky" - yet account for 100 per cent of net profits by the top five energy companies (excluding British Gas).
So what should I do if I am "sticky"?
Switch. But beware. It’s a worrying element of today's OFGEM report that those who do not switch can end up paying over the odds - but that those who do switch can also end up losing out.
The investigation shows that around a third of people who go to the trouble of switching supplier may make no actual saving! Think of it, after all the pro-switching hype of the last six years - thousands have had no benefit.
The problem is that some doorstep sales staff do not give the right advice. Also, some customers have been lured by attractive internet rates, which then change so they do not get the lasting benefit they expected.
The advice must be to switch - but do it with care. Make sure you have all the facts and keep an eye on the new tariff you end up on to make sure it does not rise.
