There are a number of different ways you can pay your gas or electricity bill, and a number of different places you can do it.

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1 HANDOUT 1 Payment Options How and where to pay the bill There are a number of different ways you can pay your gas or electricity bill, and a number of different places you can do it. Direct debit paying gas and electricity bills monthly or quarterly by direct debit from a bank account. Standing order paying gas and electricity bills monthly or quarterly by standing order from a bank account but this needs to be arranged with the supplier first. Debit or credit card to pay gas and electricity bills over the phone. Telephone or internet banking paying gas and electricity bills this way means you need the sort code and account number of the supplier, plus the gas/ electricity account number. The information needed is on the back of gas and electricity bills. By post if paying gas and electricity bills by post make the cheque payable to the supplier as worded on the bill and write the gas / electricity account number on the back. Send the cheque to the address printed on the back of the gas and electricity bills. Post Office paying the gas and electricity bills at the Post Office, but there may be a charge for this service. Bank or Building Society paying the gas and electricity bills by cash or cheque at the bank or building society, but there may be a charge for this service. Cheques should be made payable to the supplier as named on the bill and the gas/ electricity account number should be written on the back. 1

2 Payment cards the supplier issues the consumer with a payment card (sometimes referred to as an Energycard ) that enables them to pay their energy bills at any PayPoint or Post Office. Payment cards differ between energy suppliers. Some enable consumers to make flexible payments throughout the year (even before receiving a bill); others are used to make set regular payments. Payment cards can be a good option for those are looking for a convenient way to make cash payments. Prepayment meters the supplier will have an arrangement for their customers to buy electricity or gas, using a key or card from one or more of the following: outlets with PayPoint ( check the postcode finder on the PayPoint website to find the nearest one. Look for the yellow and mauve PayPoint signs. outlets with Payzone ( look for the pink, blue and white Payzone signs. Post Offices ( The consumer may not be able to top up the key or card at all outlets if in doubt, contact the supplier for advice. Consumers should only top up at official outlets and be aware of scams. See: Third Party Deductions (TPD) Fuel Direct An arrangement can be made, with the consumer s permission, for a fuel debt and on-going consumption to be paid for from benefits. This can be arranged between the Department of Work and Pensions (DWP) and the supplier. To qualify the consumer must be on the necessary benefits and the arrears must be greater than the Income Support rate for a single person aged 25 and above ( during 2014/15). It must also be in the consumer s, or their family s best interests for direct payments to be made. The debt recovery rate is set at 2

3 3.65 per fuel a week or 7.30 a week if the consumer has debts for both gas and electricity. Deductions are made before the consumer receives their benefit. The qualifying benefits are: Income Support Income-based Jobseeker s Allowance Pension Credit Income-related Employment and Support Allowance When considering this option it is important to ascertain if the consumer has any other TPD arrangements set up. Fuel Direct will usually end if the consumer comes off the qualifying benefit. 3

4 Fuel Payment Methods Payment Methods Advantage Drawback Who would it suit? Cash or cheque (quarterly or monthly) Only have to think about bill when it arrives. Always pay for fuel after it has been used. Possibility of a prompt payment discount. Can be an expensive way to pay because of processing fees. Difficult to budget because of the large differences in winter and summer bills. Possibility of a late payment fee. Households with good budgeting skills. Households whose income is stable. Household whose income can easily accommodate fluctuating bills. Direct Debit (fixed or variable, monthly or quarterly) Discounts are available. Ease of budgeting. With variable direct debit pay for the actual consumption if accurate readings provided. Must have a bank account. Consumption may exceed payment. Effectively underpay in winter and overpay in summer with fixed direct debit. Bank charges will be incurred if insufficient funds in the account. Households with regular income. Those who are paid monthly. Those who prefer to budget monthly. Standing Order Consumer has control over the payment. Ease of budgeting. Consumption may exceed payment. May not benefit from discounts. Households with regular income. Those who are paid monthly. Those who prefer to budget monthly. Online Account: Direct Debit Discounts are available. Can monitor account on a daily basis. Payment by direct debit. No paper bills. Must have access to a computer. Need a bank account. Households who like to be in control of their accounts. Need to be computer literate. Big Energy Saving Network Handouts v1.0 August

5 Payment Method Advantage Drawback Who would it suit? Budget Scheme or Cash Plan Prepayment Meter: Key/ Card Payment made weekly, fortnightly or monthly with a payment card (sometimes referred to as the Energy Card ). No bank account needed. Easy to budget. Can pay at PayPoint, Payzone or Post Office. Can be used to repay debt. Pay-As-You-Go consumption and debt is paid together. Easy to budget. No bank account needed. With key meter the risk of fraud is reduced. Able to see easily how much fuel is used. No discounts. Possible travel costs and inconvenience. Possible travel costs. Risk of self-disconnection. Emergency credit is limited. Need to keep meter in credit to avoid problems. May not be appropriate for those with mobility issues or if reliant on electricity for medical reasons. Keys and cards are frequently lost, broken or stolen resulting in the inconvenience, additional costs and sometimes self-disconnection. Household which does not have a bank account. Those who prefer to deal in cash. Households who prefer to budget in this way. Those who are repaying a debt. Landlords who have a quick turnover of tenants. Third Party Deduction Fuel Direct Payment is deducted from benefits before they are received. Fuel consumption and debt evenly spread. Easy to budget. Prevents disconnection. No flexibility in budgeting. If eligible benefit ceases the fuel payments will end. Person responsible for the bills in receipt of Income Support, Incomebased Jobseeker s Allowance, Pension Credit or Income-related Employment and Support Allowance. Debt needs to be paid back at a very low rate. Those who due to their vulnerability are unable to make fuel payments themselves. Big Energy Saving Network Handouts v1.0 August

6 HANDOUT 2 Tariff Options In August 2013 Ofgem, the industry regulator, published detailed changes that were designed to deliver a simpler, clearer and fairer energy market. The reforms were partly designed to tackle the problem of widespread consumer confusion over energy tariffs. By simplifying and reducing the number of tariffs, it makes it much easier for consumers to access the information they require to compare their options and identify the best deal on the market. There are a number of tariff options that suppliers can offer. The main types of offerings in the market include: Standard variable single rate with a standing charge Time of Use (e.g. Economy 7, White Meter) Prepayment Fixed term (of a finite duration) Green Suppliers are allowed to offer two cash discounts to customers: Dual fuel where there is a discount for taking both fuels from one supplier Online where a discount is given for managing the energy account online and receiving bills electronically Standard Tariff Standard tariffs do not have a fixed duration and are open-ended. Because they are open ended, the prices of a standard tariff can go up or down. This can mean that they are more expensive than some fixed term products. Suppliers are not allowed to include an exit fee, so consumers are free to leave a standard tariff at any point in time without paying a cancellation charge. Standard tariffs are offered as single fuel tariffs or can be dual fuel, with the supplier typically giving a discount for taking two fuels together. 6

7 Potential benefits: No exit or cancellation fees Benefit from any price reductions Potential drawbacks: Can be more expensive Prices can increase Time of Use (e.g. Economy 7or White Meter in Scotland) With Economy 7 the consumer receives seven hours of electricity at an off-peak or low rate. Any electricity consumed after that is at the higher on-peak day time or normal rate. The timings vary between different areas, but the off-peak period will be a seven hour period falling somewhere between the hours of 10pm and 8.30am. The specific hours may vary depending on the region, the type of meter and could even change at different times of the year for example, with a mechanical time-switch, the night rate may start at 12am during the winter and spring GMT hours and change to 1am during summer and autumn BST hours. Economy 10 (sometimes referred to as Heatwise ) offers additional three hours of electricity at the off-peak rate. The timings could be, early morning (4.30am 7.30am), early afternoon (1.30pm 4.30pm) and overnight (8.30pm 12.30am). Economy 10 is not supported by all energy companies so consumers choices may be more limited. Potential benefits: May be better for households using electric storage heaters or heating water using an electric immersion heater it is estimated that the consumer ought to use approximately 55% of their electricity at night for it to be cost effective (this figure does vary according to the supplier) Potential drawbacks: Can be expensive if the consumer does not use enough electricity during the off-peak period to make it cost effective 7

8 Some consumers may have a legacy Economy 7 meter despite a change in heating arrangements (i.e. a new gas boiler instead of an electric storage heater) so it may be worth checking to see if this is still an appropriate meter most can be run as a standard meter Prepayment Tariff For use with a prepayment meter. Potential benefits: Makes it easier for the consumer to budget as they know what they spend Potential drawbacks: Can be more expensive than paying by direct debit Limited number to choose from Fixed term tariffs With a fixed term tariff, the consumer will be in a contract with their supplier for a defined period of time. Some suppliers may also fix prices at one level for the duration of the tariff. Typically, fixed term tariffs have a termination fee if the consumer leaves the contract early. To avoid customers unwittingly being rolled onto a more expensive contract at the end of a fixed term tariff, Ofgem s new rules will make suppliers put the consumer onto the cheapest standard tariff they offer at the end of the fixed term if the consumer does not choose a new tariff. If the consumer does not want this to happen, they can contact their supplier before the fixed term tariff comes to an end and choose something else, or move to another supplier. If the consumer is happy being put onto the cheapest evergreen tariff but want to choose something else later on, they can move without being charged an exit fee. Such tariffs come in three main types: 1. Where the prices are fixed at a certain level for the entire length of the contract (e.g. the unit rate will be x for the full one year of the tariff). 8

9 2. Where a supplier tells the consumer at the start of the tariff what the prices will be throughout the contract (e.g. the unit rate will be x for the first 6 months, and y for the 6 months after that). 3. Where the prices are linked to an index that the supplier has no control over (e.g. the unit rate will start at x and follow the movements of the FTSE 100 after that). For these types of tariff, everything has to be set out by the supplier at the start of the contract, so the consumer knows that fixed means fixed. Potential benefits: Certainty on price because under Ofgem s new rules suppliers cannot change the price, the consumer will have certainty on the costs of their tariff Some fixed term have fixed prices paying the same unit rate means the consumer can plan ahead Potential drawbacks: Cost depending on the tariff, some fixed rate tariffs can be more expensive than the supplier s standard tariff; this is particularly the case with a fixed price tariff Price cuts for fixed price tariffs, if prices fall the consumer continues to pay the set rate Exit/cancellation fees Green Tariffs A number of suppliers offer green energy tariffs, but what is offered can vary. To provide clarity Ofgem supported the launch of the independent Green Energy Certification Scheme in The scheme ensures that electricity is matched with a renewable source, the supplier is delivering additional environmental benefits, and the tariff has been audited by an independent third party, certified schemes carry the Green Energy logo. 9

10 Potential benefits: Consumers are able to choose certified tariffs that help the environment Consumers can seek third party reassurance of green claims by choosing a certified scheme Potential drawbacks: Can cost more Dual Fuel discount Most suppliers offer dual fuel discounts for taking both fuels from them. Under Ofgem s Retail Market Review changes the amount of the dual fuel discount will be clearer. It will no longer be expressed as a percentage amount but as a per year figure. Potential benefits: Usually cheaper getting both fuels from the same supplier More convenient for the consumer receive bills from one company and there is only one point of contact for any queries, requests for help or complaints Potential drawbacks: Some tariffs have dual fuel discounts that look appealing, but may not be cheaper than taking gas and electricity from separate suppliers Online discount With online tariffs the consumer will need to sign-up/manage their account online and receive their bills electronically. The tariff name will usually refer to online or web. In many cases, suppliers give discounts for taking an online tariff. Potential benefits: May be more convenient to manage for the consumer 10

11 The discount will reduce the cost of the tariff (but there may be cheaper non-online tariffs on the market) Potential drawbacks: Only available to consumers with internet access 11

12 HANDOUT 3 Understanding Fuel Bills Electricity bill variable single unit rate and standing charge Read is the meter reading at the end of each month/ quarter 2 Last Read is the meter reading at the start of each month/ quarter 3 Number of units used in kwh 4 Standing charge 5 Cost of units per kwh in pence 6 Total cost of electricity used including VAT 7 S number or Meter Point Administration Number (MPAN) 12

13 Gas bill variable single unit rate and standing charge Meter serial number 2 Last Read meter reading at the start of each month/ quarter 3 Read this is the meter reading at the end of the month/ quarter 4 Number of gas units used 5 Formula for converting units used into kilowatt hours 6 Standing charge 7 Charge for units used 8 Total cost of gas used ( ) 13

14 What information should be on the bill? Contact details of the supplier The customer reference number or account number this should be prominent on the bill and should be quoted when contacting the supplier The current outstanding balance is usually in bold type Customer s name and address The dates of the billing period The previous and present meter readings How many kilowatt hours of gas or electricity have been used during the bill period How much the supplier is charging per kilowatt hour of gas or electricity The specific supply reference number Emergency contact details should there be a loss of supply or any other emergency What do the letters after the meter reading mean? There are a number of letters that may appear after the meter reading on a gas or electricity bill. Some of the most common include: E The supplier has estimated the reading. A The supplier has used an actual meter reading obtained by a meter reader. C The supplier has used the reading the customer provided or occasionally this can mean a company estimated read. R The reading is the final one from a meter that has now been removed. N The reading is the first one from a new meter. F The final meter reading when leaving a property, discontinuing a supply or switching suppliers. What is the 'S' number on the electricity bill? Each electricity supply has a reference number which relates to the property and stays the same even if the meter is changed. This is called the Meter Point Administration Number (MPAN). This number is not written on the meter itself. To find out what the MPAN is for a particular property check the bill or contact the local distribution company. 14

15 How to find out who the electricity supplier is To find out who the electricity supplier is call the local distribution company. They should confirm the registered supplier and provide a contact number for the company using the address details and meter serial number. The telephone numbers for the distribution companies shown in the table below are usually open during normal office hours. The information comes from the National Grid and the Energy Networks Association websites. Area Company General Enquiries Number North Scotland Scottish & Southern Energy Power Distribution South Scotland SP Energy Networks North East England Northern Powergrid North West Electricity North West Ltd Yorkshire Northern Powergrid Midlands Western Power Distribution Eastern England UK Power Networks South Wales Western Power Distribution Southern England Scottish & Southern Energy Power Distribution London UK Power Networks South East England UK Power Networks South West England Western Power Distribution North Wales, Merseyside and Cheshire SP Energy Networks What is the 'M' (MPRN) number on the gas bill? Each gas supply has a reference number which relates to a specific domestic property and stays the same even if the meter is changed. This is called the Meter Point Reference Number, or MPRN or M number for short. This number is not written on the meter. 15

16 How to find out who the gas supplier is Information on gas suppliers is held by the transporters. If they are provided with the address and/ or meter serial number the transporter should be able to confirm who the registered supplier is and provide their contact number. The meter serial number is usually located on a sticker attached to the meter. Transporters are the only organisations that can confirm who the gas supplier is for a specific property. For the vast majority of consumers, gas is transported by National Grid, Northern Gas Networks, Scotland Gas Networks, Southern Gas Networks or Wales and West Utilities. A consumer can contact the Meter Point Administration Service on to find out the MPRN for the property. Some consumers are supplied via an Independent Gas Transporter (IGT). A consumer can contact the Meter Point Administration Service on to find out the MPRN for the property and who the IGT is. Contact details for each IGT can be found at the IGT UNC website: How the bills are worked out Whilst the bills themselves are usually fairly similar once you know the kilowatt hours (kwh) used it is worth noting that gas readings have to be converted first. Below are some guidelines on calculating the kwh used. Electricity Electricity meters measure in kwh, so subtract the previous meter reading from the present meter reading to calculate the kwh usage. Gas To calculate how much gas has been consumed: 1. Subtract the previous meter reading from the present reading. 2. Determine if the meter is imperial or metric: Imperial meters will have an ft 3 after the reading on the meter and usually have four digits. 16

17 Metric meters will have an m 3 after the reading on the meter and usually have five digits. Only if the meter is imperial Multiply the figure by Insert the number of units of gas used into the formula below to convert into kilowatt hours (this formula is always on the gas bill). Gas units used x volume conversion factor ( ) x calorific value (e.g. 40.4) kilowatt hours conversion factor (3.6) = kilowatt hours used The calorific value is a variable figure. When dealing with individual cases use the formula given on the bill in question. If the bill is not available contact the supplier for the relevant figures. Converting kwh to There are a number of tariff types available. The simplest takes the kwh used, multiplies it by a figure in pence, adds a figure for the daily standing charge and then adds VAT at 5%. If it is a time of use tariff, Economy 7 or any other kind of special tariff, the calculation may not be quite so straightforward and it would be better to contact the supplier to confirm how the billing works. 17

18 Comparison Tools Annual Statements Since July 2010 energy suppliers are obliged to send an annual statement. This includes prepayment customers. The statement should include: a reminder of the principal conditions of the customer s contract; information about any premiums or discounts that may apply to the customer s tariff as compared to the supplier s standard tariff where payment is by direct debit; a reminder that the customer can switch along with advice on how to do so; a record of how much energy has been used in the previous 12 months; the name of the customer s current tariff; and an estimated cost in /year of the customer s supply for the next 12 months if the customer remains on the same tariff. Tariff Information Label (TIL) and Tariff Comparison Rate (TCR) Since the end of March 2014 three new comparison tools have been introduced into the market to help consumers compare deals: 1. Tariff Information Label (TIL) 2. Tariff Comparison Rate (TRC) 3. Personal Projection 18

19 1. Tariff Information Label (TIL) The TIL gives the consumer all the information they need about a tariff in a standard format, to let them easily compare products. Each TIL is specific to the location of the consumer s property, fuel type (gas or electricity) and payment method. The TIL contains information about the tariff, such as, costs for unit rates, standing charge costs, Tariff Comparison Rate (TCR), and discounts. Example of a Tariff Information Label Prepayment Gas Tariff About your gas tariff Supplier Excellent Energy Tariff name Standard (Variable) - Prepay Tariff type Variable Payment method Prepayment Unit rate 4.380p per kwh Standing charge 26.25p per day Tariff ends on No end date Price guaranteed until Not applicable Exit fees (if you cancel this tariff before the end Not applicable date) Discounts and additional charges Not applicable Additional products or services included Not applicable Illustrative gas cost on this tariff Assumed annual 13,500kWh consumption Estimated annual cost Tariff Comparison Rate 5.09p per kwh (TCR) All prices shown above include 5% VAT. They will appear different than the unit rates shown on your bill which don't include VAT. Your Standard (Variable) - Prepay prices may go up or down. 19

20 2. The Tariff Comparison Rate (TCR) The Tariff Comparison Rate (TCR) shows the cost per kwh that a typical consumer pays on this tariff. To work out the TCR, the supplier assumes the customer uses 13,500 kwh per year of gas and 3,200kWh per year of electricity and then includes the unit rates and standing charge. It is a guideline to help the consumer compare tariffs; it is not an actual price. The consumer s actual energy cost will depend on their usage. The consumer can use the TCR to compare the cost of their current tariff and fuel type with the cost of other available tariffs across suppliers on a like-for-like basis. It is similar to the Annual Percentage Rate (APR) used in savings, credit and loan agreements. The current tariff s TCR will always be printed on the consumer s bill or annual summary. Included in TCR calculation: Payment method Unit rate Standing charge Dual fuel discount Excluded from TCR calculation: Exit fee Late payment fee Additional products and services (e.g. Gift cards and Nectar points) 3. Personal Projection The new Personal Projection will be used to estimate what the consumer will pay on a tariff based on their own usage or the supplier's best estimate of it. Consumers will get a Personal Projection on their bills. It will also be used for quotes. 20

21 HANDOUT 4 Switching Guide 1. Points to consider prior to switching Existing supplier first check with the existing supplier to see if they can offer a better deal. Price to most consumers, the price of their supply of gas and electricity is the most important factor in deciding which supplier to use. Standing charges the lower the standing charge the higher the unit cost may be. If the consumer is a low user then the low or no cost standing charge with a higher unit price might be more suitable. Check the amount of any prepayment meter standing charge. Payment methods some of the advertised savings are calculated not only on the basis of switching suppliers but also the payment method. It may be worth exploring a cheaper payment option with the existing supplier. It is important that the payment method is appropriate for the individual s circumstances and meets their needs. Tariff types there are a number of tariffs available and it is best to select one that suits the needs of the consumer. Contract find out if the existing contract or the new contract contains any penalty fees for exiting early. Exit fees check with the current supplier to see if there is a penalty for cancelling the current contract. This is more likely to be the case with a fixed term contract. After the implementation of Ofgem s Retail Market Review exit fees can only apply to fixed term contracts. Performance and complaints it is worth considering the supplier s record with regard to these areas. League tables of suppliers performance can be found on the Citizens Advice consumer service website. 21

22 Propositions be aware that suppliers use propositions as sales tools. This is an offer used to induce a new customer into a contract. Some suppliers offer vouchers and other incentives for remaining with the company for a fixed period of time. Supplier flexibility the consumer may want to change their payment method or some other aspect of their supply. For example, changing a prepayment meter for a credit meter, some suppliers may be more willing to help with this than others. It is worth asking about this. Tenancy arrangements check with landlord (private rented or social housing) to find out if tenancy arrangements affect switching. See the Ofgem factsheet, Tenants Energy Rights Explained, available at: Warm Home Discount check if the consumer is entitled to an electricity rebate under the supplier s broader group qualifying criteria. 2. Gathering the information prior to switching Information required from the consumer: Name of current tariff Payment method How much the energy has cost over the last year Usage (in kwh) over the last year Property postcode The usage and cost of the fuel can be calculated using energy bills. The most helpful document is the annual statement. The consumer can contact their existing supplier to ask them for a prediction of usage and cost over a twelve month period. For consumers using a prepayment meter having an estimate of how much they spend on fuel in a week or month during the summer and winter months will be helpful. 22

23 Some comparison sites allow the consumer to perform the comparison using only the amount of money spent on energy in the previous twelve months. However, it is better to provide details of the number of units (kwh) used and the name of the current tariff to get more accurate results. 3. Finding information Price comparison information enables the consumer to compare the prices across all suppliers. This information can be accessed online or by telephone. The consumer can contact a supplier or use an internet comparison website which can be contacted by telephone if preferred. It is advisable to use a comparison website that is accredited by Ofgem and complies with the Confidence Code (see Handout 6). The Confidence Code confirms that the information on the site is independent, accurate and up-to-date. The sites covered by the Confidence Code act independently of the suppliers and the options and prices on offer will have been calculated and displayed in a fair and unbiased way. A list of accredited price comparison sites can be found at If the consumer cannot access the information online they can telephone the Citizens Advice consumer service who can provide pricing fact sheets for their area. Consumers may also be approached by sales representatives of the suppliers offering them new deals. The information provided by sales representatives will be limited. The consumer will only be shown deals relevant to that particular supplier. 23

24 Ofgem has created a guide ( Go Energy Shopping ) to show how reforms to the energy market can help consumers compare tariffs and get a better deal on their gas and electricity bills. The website includes: New tools to help people compare the different tariffs A glossary explaining the language used on bills Links to other useful sites A downloadable guide to switching Accessible at: 4. Switching Process Once the consumer has chosen a new supplier they can either switch using an internet price comparison site or by contacting the supplier directly. The suppliers are responsible for managing the switch and all have signed up to a switching supplier peace of mind guarantee see 24

25 When the best deal for the consumer has been identified contact the new supplier. If a price comparison website is used they will contact the supplier on the consumer s behalf. It is worth having the contact details for both the old and new supplier in case there is a need to contact them during the process. The new supplier will write to the consumer within seven working days to confirm the details of the switch. The energy contract can be agreed over the telephone, online or signed face-to-face with a sales representative from the fuel supplier. The new supplier will contact the consumer s current supplier for them. The new supplier will write to the consumer to confirm the start date and request a meter reading. This reading will be sent to the existing supplier, enabling them to send a final bill. Check the consumer s final bill from the old supplier. The consumer will have to pay for all the energy used up to the date of the switch. The switching process should take twenty-one calendar days after a fourteen day cooling-off period during which the consumer is able to cancel the contract. The twenty-one calendar days begins after any raised objections have been resolved, all relevant information received and the cooling-off period has ended. By the end of 2014 the switch will be completed within three days of the end of the cooling-off period. The consumer will need to remember to cancel any payment method (for example, direct debit) with the old supplier once the final bill has been settled. During the switching process it is helpful to keep a file or folder containing the following information: Date and time of contact with supplier Name/ contact details of the supplier s representative Details of agreed deal/ contract Final meter readings and date Any letters/ s Final bill from former supplier 25

26 5. Redress mechanism If there are any difficulties during the process the consumer should contact the supplier in the first instance. If they need advice then contact the Citizens Advice consumer helpline or for the Welsh language service and followed by for textphone. If the energy supplier has not settled the complaint after eight weeks, the consumer can contact the Energy Ombudsman. The consumer can take their complaint to the Ombudsman earlier if the supplier sends them a deadlock letter. A deadlock letter confirms that the supplier has investigated the complaint and considers the matter is closed. The Ombudsman will look into the complaint and can award consumers up to 10,000 in compensation, although typical payments are around 132. Using the Ombudsman is free. Energy suppliers have to pay for every case that gets to this stage. Contact details for the Energy Ombudsman: Telephone: (lines are open Monday to Friday from 9am until 5pm) Textphone: Potential savings The potential savings the consumer makes will be dependent on: Where the consumer lives (as prices vary across the country) Whether the switch involves one fuel or both The payment method According to the Department of Energy and Climate Change (DECC) significant savings can be made, for example, those customers who have never switched and pay by standard credit could save up to 200 a year by switching supplier and paying by direct debit. 26

27 7. Circumstances where switching may not be possible Switching with debt If the consumer owes money for less than 28 days (for example, the most recent bill has not been paid), then normally they are able to change supplier as soon as the bill is settled. If the consumer is in debt because of a mistake by their supplier, they can still switch but will have to pay any debt. If the supplier increases their prices and blocks a consumer from switching because of an outstanding debt, the consumer has thirty days to pay the amount. If the debt is paid within this period the consumer can switch without having to pay the increased price. If the consumer does not have a prepayment meter and they have a debt, the supplier can stop them from switching until the debt is paid. This is known as debt-blocking. If the supplier blocks the consumer s request to switch in this instance they must offer advice on the best tariff they offer, managing debt and energy efficiency advice. If the consumer has a prepayment meter they can switch supplier with a debt up to 500 for electricity and for gas. The consumer will have to continue using a prepayment meter with a new supplier at least until the debt is paid off. This situation is covered by the Debt Assignment Protocol (DAP). This allows prepayment meter (PPM) users with a debt of up to 500 to switch and transfer the debt to a new supplier. Since it was introduced in 2004 the DAP has been rarely used. Ofgem wants to increase awareness of switching rights for those in debt and to increase the number of PPM users switching. The most common reason for PPM users failing to 27

28 switch supplier was the existing supplier objecting due to an outstanding debt over the original 200 threshold. This amount has not kept pace with current debt levels. The 200 debt threshold is set in the supply licences and a change requires a formal licence change. Therefore, the commitment by big suppliers to increase DAP is entirely voluntary (from November 2012) and smaller suppliers from April If a consumer is owed money by their supplier they can switch. The supplier is required to pay back the money owed to the consumer on switching. The consumer can request their money be paid back to them at any time. Paying landlord for energy used The consumer pays their landlord directly for the energy they use either as part of their rent or separately. If the tenant pays an energy supplier directly they have a contract with them. Ofgem, in their tenancy rights factsheet, published in September 2013 state that the landlord or letting agent should not prevent the tenant from switching in these circumstances. Terms of the lease The consumer s lease specifies that they cannot change supplier. The tenancy may say the landlord has a preferred supplier and that the tenant needs to inform the landlord if they wish to switch. Should this be the case, the landlord or letting agent should make the tenant aware of any tie-ins with specific suppliers. It may be that the tenant has to return the account to the original supplier at the end of the tenancy. See Ofgem s factsheet Tenants Energy Rights Explained for further information. Protected tariffs Prior to privatisation regional electricity boards offered a number of different electric heating solutions that required unique metering systems and tariffs. Following privatisation electricity suppliers formed out of the regional electricity boards were compelled to 28

29 continue offering these tariffs for that region, however, other suppliers did not have to offer an alternative. This means that some consumers would have to change their entire heating system to transfer to another supplier. The three rate Total Heating Total Control, Weathercall and ComfortPlus are examples of protected tariffs. 8. Collective Purchasing and Switching Schemes Collective purchasing and switching occur when a group of consumers band together to negotiate a better deal with their gas and electricity suppliers. There is no set model for how individual schemes will operate; however, this kind of activity will usually be facilitated by a third party who works on behalf of the consumers. In general, collective switching is where a third party actively negotiates a better tariff on behalf of the consumers they represent. Collective purchasing is where the third party/collective is directly purchasing from the gas or electricity supplier. The exact information required from the consumer participating in the scheme will depend upon the collective scheme. Initially they may be asked to register their interest in joining a scheme. The organisation should be clear about what information they need and why they need it, and when they need it by. An organisation will in most cases need to build up a picture of the consumer s current energy use and preferences in order to negotiate on their behalf. It is likely that the consumer will be asked for the following information: name, address and contact details; details of current tariff and energy supplier; if they are on a fixed term contract and whether this is subject to a termination fee; how much energy they use per year; how they pay their bill (direct debit, cash or cheque, prepayment); and their preferences, for example, if they would be happy to change the way they manage their account in order to save money, or whether they would prefer their energy to come from renewable resources. 29

30 How the process works can vary from scheme to scheme. However, the main stages consist of the third party promoting/marketing the scheme, gathering information from interested consumers, negotiating with suppliers, informing consumers of the deal and then managing the purchase/ switch on behalf of those consumers who decide to go ahead with the deal. For more information see DECC s information sheet Collective Purchasing and Switching: what consumers need to know. 9. Consumer Protection (information from the Fuel rights handbook, 16 th edition published by the Child Poverty Action Group 2013 and the Citizens Advice consumer service) The Code of Practice for Face-to-face Marketing of Energy Supply covers all forms of marketing including direct selling, door-to-door visits and telemarketing. The standards set by the licence conditions and the Code of Practice includes the following: all advertising and promotion must not give false or misleading information members, their agencies/contractors and sales agents must comply with all applicable licence and legislative obligations the timing of calls should be convenient for the consumer, including no calls outside the hours of 9am to 8.00pm, and in sheltered housing the warden should be contacted first callers must identify themselves by producing an ID without being asked and leaving a phone number by which the consumer can verify their credentials the sales agent must withdraw voluntarily if the consumer indicates that the approach is unwelcome, inconvenient or inappropriate if the consumer refuses to sign a contract, the salesperson must not persist in persuading them against their wishes 30

31 the principle terms and conditions of the contract must be made clear before the consumer signs the consumer must be given a copy of the contract they sign if the consumer signs a contract, they must be given the opportunity to refuse receipt of future advertising and promotional material i.e. junk mail If the consumer agrees with a sales representative to switch supply, then they have a contract. This is the case even if the consumer has not been given a written copy of the contract. If the consumer does not agree with a sales representative to switch then they do not have a contract and they are free to change their mind and do not have to switch to that particular supplier. If the consumer agreed to switch with a sales representative who visited them in their home or whom they met in a public place, they have fourteen days in which to cancel the switch. Under the Doorstep Selling Regulations the sales representative should supply the consumer with the following information: their identity; details of the switching process; where to get independent advice; a copy of the contract; and how to cancel the contract. If the sales representative does not supply the representative with the above information the consumer has the right to cancel the contract. If the consumer agreed to switch with a sales representative over the telephone or via the internet they have 14 days in which to cancel the contract. The time can be extended if the consumer did not get written information after their contract was finalised. This is because of the additional rights the consumer has under Distance Selling Regulations. An erroneous transfer occurs when a consumer is switched to a new supplier without their consent. This can happen due to a genuine error, for example, a mix up about address, and in the case 31

32 of a sales representative misleading a consumer or even forging signatures on contracts. The consumer will often be alerted to the switch by a goodbye letter/ card or final bill from their current supplier or a welcome letter from the new one. In this instance the Erroneous Transfer Customer Charter applies. The charter sets out the minimum level of service the consumer can expect if they have been erroneously switched. It does not apply if the consumer has simply changed their mind during the switching process. The consumer will have to pay for any energy used during the erroneous transfer, but they will not have to pay anything to the new supplier. In August 2013 Ofgem s Standards of Conduct came into force. They require suppliers and any organisations that represent them, such as brokers or third party intermediaries, to ensure that each domestic consumer is treated fairly. They cover three broad areas: Behaviour: suppliers must behave and carry out any actions in a fair, honest, transparent, appropriate and professional manner. Information: suppliers must provide information (whether in writing or orally) which is: complete, accurate and not misleading (in terms of the information provided or omitted); communicated in plain and intelligible language; relates to products or services that are appropriate to the customer to whom it is directed; and fair both in terms of its content and in terms of how it is presented (with more important information being given appropriate prominence). Process: the supplier must: make it easy for the consumer to contact them; act promptly and courteously to put things right when they make a mistake; and otherwise ensure that customer service arrangements and processes are complete, thorough, fit for purpose and transparent. More details can be at: 32

33 HANDOUT 5 Energy Suppliers Contact Details British Gas Opening hours: Monday to Friday: 8am 8pm Saturday: 8am 6pm EDF Energy Enquiries for existing customers: Opening hours: Monday Friday: 8am 8pm Saturday: 8am 2pm Sales enquiries: Opening hours: Monday Friday: 8am 8pm Saturday: 8am 6pm E.ON Opening hours: Monday to Saturday: 8am 6pm npower Landlines: Mobiles: Opening hours: Monday Friday: 8am 8pm Saturday: 8am 6pm Scottish Power Current customers: (local rate call) Opening hours: Monday Friday: 8am 7pm Saturday: 8.30am 1pm New customers:

34 Opening hours: Monday Friday: 8am 7pm Saturday: 8.30am 1pm SSE Southern Electric (part of the SSE group) Scottish Hydro (part of the SSE group) SWALEC (part of the SSE group) Atlantic (part of the SSE group) General enquiries: Opening hours: Monday Friday: 8am 8pm Saturday: 8am 2pm General enquires: Opening hours: as above General enquiries: Opening hours: as above General enquiries: Opening hours: as above General enquires: Opening hours: as above The big six fuel suppliers (British Gas, EDF Energy, E.ON, npower, Scottish Power and SSE) can provide a translation service if English is not the consumer s first language. A family member or friend can contact the supplier and inform them that this service is required. Ebico Ecotricity First Utility Good Energy Green Energy Loco2energy

35 OVO Energy Mobile: Spark Energy The Co-operative Energy Utilita

36 HANDOUT 6 Accredited Price Comparison Websites The sites accredited to Ofgem s Confidence Code act independently of suppliers. This means consumers can be sure that when they are presented with options and prices, these have been calculated and are displayed in a fair and unbiased way. Accredited sites can help consumers find the best deal for them based on their energy consumption and provide them with a free and easy-touse switching service. Note: the price comparison sites are displayed in alphabetical order energyhelpline.com Energylinx MoneySupermarket.com myutilitygenius.co.uk SimplySwitch switchgasandelectric.com TheEnergyShop.com UKPower.co.uk Unravelit uswitch.com Which? Switch Note: that some of these telephone numbers are not free from either a landline or a mobile phone. 36

37 HANDOUT 7 Help for Off Gas Customers Oil Buying Groups Off-grid communities who use heating oil can save money on their fuel by joining or setting up heating oil buying groups. Buying groups purchase oil in bulk on behalf of members which enables them to negotiate the best price per litre. This is not a new idea, but it seems that the numbers have grown rapidly over the past 4-5 years. Larger orders Buying Together The basic model for an Oil buying group Better coordinated deliveries Lower Price offer According to the ACRE website twenty-four members of the Rural Community Action Network are helping rural residents by bulkbuying central heating oil at much better prices than individuals can get for themselves. Members of the Network that do not run their own schemes may be able to give advice on how to set up a group for yourself, or provide information about groups that exist in your area. The ACRE website provides a link which allows oil users to check if their local RCC runs an oil scheme: ACRE reports savings are usually about 5p per litre cheaper than the average prices quoted by oil suppliers (this may vary from place to place and according to circumstance). This means that the annual subscription 37

38 of 20 (plus VAT) is quickly and easily recovered and members can be confident of being better off as a result of using the scheme. ACRE, the Federation of Petroleum Suppliers (FPS) and Citizens Advice have produced Best Practice for Oil Buying Groups, which can be downloaded from the ACRE website. This helpful document explains how heating oil is traded, points to consider before setting up or becoming involved in an oil buying group and how to manage a group. The Federation of Petroleum Suppliers introduced a Code of Conduct in September 2013 which is mandatory for their members. ACRE recommends using oil suppliers who are FPS members and therefore must adhere to this code. A copy of the Code can be downloaded here: Useful links: ACRE Oil Save (FPS s site for customers) 38

39 HANDOUT 8 The Warm Home Discount Scheme The Warm Home Discount (WHD) scheme is funded by the energy suppliers. It came into force in April 2011 and provides financial support to vulnerable energy consumers until The WHD replaced social tariffs and voluntary arrangements previously offered by energy suppliers. The following suppliers are involved in the scheme: Atlantic (SSE) British Gas Co-operative Energy EDF Energy E.ON Equipower (Ebico) Equigas (Ebico) First Utility Manweb - see ScottishPower M&S Energy (SSE) npower Sainsbury s Energy (British Gas) Scottish Gas Scottish Hydro (SSE) ScottishPower Southern Electric (SSE) SSE SWALEC (SSE) Utility Warehouse The WHD scheme separates eligible households into two groups the Core Group and the Broader Group. Core Group Qualifying Criteria Households in the Core Group will automatically receive the discount on their energy bill without having to take any action. There may be instances where the Department for Work and Pensions (DWP) writes to some consumers advising that they qualify for the WHD Core Group rebate, but are unable to automatically process this with their supplier 39