Ofgem
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Savvy students can now take control of their energy bills
- Three-quarters (77%) of bill paying Brits living in rented accommodation say they've never switched energy supplier and one in five (20%) is not aware of their right to switch
- University is the first time many students start renting, and they could save up to £200 if they shopped around for their gas and electricity
- Be An Energy Shopper campaign gives the nation’s students the know-how they need
Latest data from Ofgem’s 2014 Consumer Engagement survey shows that a shocking three quarters of bill paying tenants admit they've never switched energy or gas supplier in order to try and save their hard earned cash (77% for electricity and 74% for gas). And despite the fact that shopping around could save tenants up to £200 , one in five (20%) admit that they weren’t aware they could switch to a different supplier.
The research highlights the sheer lack of awareness among tenants of their rights to shop around to get a better energy deal. Renters are only half as likely to switch compared to homeowners: 26% of renters said they had ever switched gas supplier compared to 47% of homeowners, with similar figures for switching, with many students renting
A common myth among renters is that they have to accept the energy suppliers already in place when they move in. But very rarely is this the case. The Be an Energy Shopper website has been updated to include the key facts, along with top tips for breaking down the barriers which prevent students applying their savvy shopping habits to their energy bills.
Dermot Nolan, Ofgem’s CEO, said: “Last year there were 2.3 million students taking HE courses across Great Britain. For many of them, it will be the first time they will rent and join Britain’s 9 million tenants. Yet research has shown that tenants are not shopping around for their energy, and missing out on savings of up to £200. We’ve now updated the Be An Energy Shopper website so that it also addresses tenants’ needs, and therefore they too can get a better deal on their energy.”
NUS Vice President, Colum McGuire said: "It’s not just homeowners who can shop around for their energy – students can too. So it’s worth taking a moment to bring yourself up to speed on your rights as a tenant. There are substantial savings to be made here so make sure you’re not missing out!"
Top tips for budget-conscious renters
- Take meter readings when moving in and out of rented accommodation
- Ask your landlord to highlight any supplier tie-ins upfront, including any exit fees which you would have to pay if you wanted to switch suppliers
- Let your landlord know if you are intending to switch supplier
- Remember: if you are responsible for paying the gas and electricity bill, you are entitled to switch at any time, and your landlord cannot unreasonably prevent you from doing so
Find out how to shop around for a better energy deal.
Notes to Editors:
Research
Ofgem’s 2014 customer engagement tracking survey was conducted by Ipsos MORI in the period 7-17 March 2014. It was a face-to-face quota survey, weighted to be representative of all adults in Great Britain aged 15+. Most figures are based on interviews with 1,227 gas consumers and 1,383 electricity consumers. The survey showed that 39% of electricity consumers overall said they had ever switched their electricity supplier. However only 23% of those in rented accommodation said they had done so, vs 45% of those who do not rent. Similarly, only 26% of gas consumers in rented accommodation said they had ever switched their gas supplier vs 47% of gas consumers who do not rent.
About the ‘Be An Energy Shopper Campaign
The Be An Energy Shopper campaign was launched by Ofgem in response to consumer demand for impartial advice on how to compare tariffs in the gas and electricity markets. An easy guide has been set up to show how recent changes to the energy market can help consumers to compare tariffs and get a better deal on their gas and electricity bills.
The website includes:
• Q&A on tenants’ rights relating to their gas and electricity bills
• New tools to help people compare the different tariffs
• A glossary explaining the language used on bills
• Links to other useful sites, including comparison services accredited to Ofgem’s Confidence Code
• A step-by-step guide that visitors can download and keep, or to give to friends and relatives without internet access
Be An Energy Shopper is supported be DECC, the Department for Energy & Climate Change.
About Ofgem
Ofgem is the GB energy regulator. Everything we do is aimed at making a positive difference for consumers. For more information on Ofgem please see our website.
About Colum McGuire
Colum McGuire, @ColumMcGuire, is Vice President Welfare after his re-election in April this year. Born in London, Colum studied Drama & Theatre and English Literature at the University of Kent, where he was also the Vice President Welfare of the Student Union. Whilst in this position, Colum sat on the Welfare Zone Committee and the National Executive Committee for NUS, as well as holding the role of Trustee for the sexual health charity Brook.
As Vice President Welfare, Colum’s work focuses on a diverse number of students social issues, including money, health, housing, work with communities and improving access to public services in our communities. This year, he delivered a research project of students living in the private rented sector, entitled Homes Fit for Study, which gained national media attention across the UK. Building on the back of this research, one of Colum’s main priorities for the year ahead is student housing and he is calling on the government to scrap letting agent fees.
For more information, please contact:
Eleanor de Kanter: 020 3263 9727
Kate Wilcox: 020 7901 7113
Chris Lock: 020 7901 7225
Out of hours media contact number: 07766 511470
