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 Don't switch on your doorstep

 

Wednesday, May 14, 2003


Two recent reports show that UK householders are not getting to grips with excessive fuel charges. Many that do switch to supposedly cheaper suppliers do so at the doorstep in response to cold-calling salesmen rather than checking various suppliers for the best deal.

A National Audit Office report indicated that people could switch their electricity supplier and save money. Which? Consumers Assocaition responded with:

"This report is a rallying call to consumers to flex their consumer muscles and switch their electricity suppliers to make savings."

"The huge majority of consumers are still switching suppliers on the doorstep, and using information provided by competing suppliers. The problems of misleading information and aggressive selling practices are well documented, so access to up-to-date, impartial information is key to consumers making informed switches. When consumers make informed choices, markets work."

And in a recent survey, eight in ten British Gas customers think they’re getting a good deal for their gas despite the company being the most expensive supplier in the UK.

British Gas has increased prices by 12.5 per cent since April 2001 and over a quarter of customers – equivalent to 6.7million people – believe the energy giant increases prices simply to make more profit according to a survey conducted for uSwitch.com by BMRB.

Researchers discovered that a staggering 74 per cent of British Gas customers – the equivalent of 17.5million people – are still customers because they have always been with British Gas!

Andrew Salmon, uSwitch.com managing director commented, “Clearly it’s misplaced loyalty that keeps people with British Gas but it’s a dinosaur, relying on consumer complacency and inertia.”

The research was carried out by BMRB on behalf of uSwitch.com in April this year. A representative sample of 2015 people was interviewed, of which 1023 said they were British Gas customers (equivalent to 24.5 million people).

The survey findings also highlighted that almost one in ten customers - the equivalent of 2.35million people - have had problems dealing with British Gas. The equivalent of over 800,000 customers have experienced billing problems and incorrect meter readings.

Others claim they have been pressured into paying by direct debit and the equivalent of more than 900,000 have been pressured into buying another service by a British Gas salesperson. The equivalent of 900,000 customers say its service is less than satisfactory and a similar proportion say it’s poorly-priced.

Andrew Salmon said, “People do not want to feel pressured into buying anything on their front door step or even over the telephone and we know from our own experience that this is an industry-wide problem. It’s vital that consumers know they can save money by switching away from British Gas.”

The energy giant has recently been fined £200,000 by energywatch for wrongly obstructing customer transfers.

Salmon added, “If this fine is imposed, it is entirely justified. Our research shows that 15 per cent of customers - the equivalent to almost 3.5 million people - tried to switch away from British Gas but astonishingly the process was made too difficult for them.”

Other findings:

  • The equivalent of more than 270,000 customers didn’t know they could switch suppliers.
  • The equivalent of more than 250,000 don’t know how to switch suppliers.
  • The equivalent of more than 900,000 customers said British Gas’ customer services never return their phone calls.

uSwitch.com is a free, impartial online comparison service which helps consumers compare prices on gas, electricity, home telephone and digital television. Their aim is to help customers take advantage of the best tariffs and services on offer from every supplier.

The company has developed a calculator which evaluates a number of factors including price, location, service and payment method, and advises consumers on the best deal to suit their needs. If they chose to, consumers can switch while they’re online or phone customer services direct. To check your potential savings Click here

 

 
 
     
     
 

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