Switching suppliers is not the answer

Tuesday, 11 November 2008

There are concerns that the Government’s suggestion to consumers to switch energy suppliers several times a year are not the way to tackle fuel poverty.

Charity Age Concern has criticised the Government’s suggestions, saying that pensioners are the most likely group to be fuel poor‚ but are the least likely to switch supplier. In addition pensioners are less likely to have access to cheap online deals, resulting in many paying higher rates because they pay by cash or cheque.

Research shows that there has been no increase in numbers switching energy supplier despite this year’s price rises. It also shows that 66% pf pensioners are cutting back on energy use, and almost half are planning to cut back on heating this winter.

Around ten per cent of low income pensioners has built up debt due to the increased cost of living this year, yet 75% of pensioners said they were unlikely to switch energy supplier in the next year.

Age Concern is calling on the Government to take urgent action to help an estimated 2.75 million pensioner households in the UK by taking action to bring pricing inequalities to an end in its November Pre-Budget Report. The Government, said the charity, should work with energy companies to reform social tariffs and penalties on meter, cash and cheque customers.

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