Securing a fair deal for energy consumers. Audrey Gallacher Head of Energy

Transcription

1 Securing a fair deal for energy consumers Audrey Gallacher Head of Energy

2 Consumer Focus: Who we are and what we do Consumer Focus is the consumer champion for England, Wales, Scotland and for postal issues in Northern Ireland. Set up under the Consumers, Estate Agents and Redress Act 2007, and created from the merger of energywatch, Postwatch and the National Consumer Council. We operate across the whole of the economy, persuading businesses and public services to put consumers at the heart of what they do.

3 Current redress arrangements for energy consumers Energy companies: complaint handling standards set and audited by Ofgem Consumer Direct: independent advice and support, first tier of help for consumers Consumer Focus Extra Help Unit: complaint handling for vulnerable and off supply cases. Energy Ombudsman: for cases that have reached deadlock Ofgem: Regulates the market.

4 Consumer Focus statutory energy watchdog Our Extra Help Unit (EHU) handles individual cases on behalf of vulnerable consumers and all disconnections. Watchdog role in the energy market: monitor energy market and review supplier practices: analyse data, from Consumer Direct, Ombudsman, Ofgem, advice agencies and other partners; mystery shopping, consumer research, campaigns etc Take action on behalf of consumers: e.g. negotiate with suppliers, compliance referrals to Regulator, consumer education, campaign for regulatory or policy change.

5 What's the problem? Low consumer confidence Perceptions of poor customer service Rising prices Increasing debts and high weekly debt repayments Consumer confusion and uncertainty

6 Consumer confidence in the energy market is low Our Consumer Conditions survey 2009 compared consumers ratings of 45 markets on the basis of choice, meeting of expectations, consumer rights, trustworthiness, and the comparability of quality and prices (CF, 2009a). Energy was in bottom three. September

7 Perceptions of poor customer service The new arrangements for energy consumers introduced in 2008 are complex and are still bedding in Ofgem is investigating energy suppliers compliance with complaint handling standards after low levels of customer satisfaction (25%) in 2009 and 2010 surveys, including consistency issues around supplier recording of direct complaints Consumer Focus review in 2010 found that consumer awareness of the sources of independent advice and support, such as Consumer Direct, is low despite suppliers being required to signpost on bills and websites - very concerning as it is the gateway to the Extra Help Unit for vulnerable consumers

8 Price - Wholesale/retail

9 Rising prices: energy bills

10 Fuel prices the consumer s view Gas and electricity companies are all the same -they put up the prices and they never bring them down. It s the consumer who gets it every single time... Someone at the end of the line is just laughing at us. We don t have any choice. We have to use gas or electricity. Anything they know we really need they charge what they like. Pensioner in Shropshire

11 Debt and Disconnection

12 Consumer confusion and uncertainty Tariff complexity: Consumers do not understand concept of tariff. Price differentials of up to million npower customers overcharged 70m for their gas in 2007 but were largely unaware Bills difficult to understand 35% of all consumers find both gas and electricity bills hard to understand Many consumers see the energy bill as a figure not as a document Increasing trend to using the energy bill as a tool of behaviour change as well as information new Licence conditions and coalition proposals in the Energy legislation

13 Information and tools for consumers Your Questions: our up to date, accurate and searchable online knowledge base has extensive information to help energy consumers. Leaflets: Free to download or order hard copies from Consumer Direct Confidence Code: use an accredited site to be sure you see ALL of the cheapest deals. We also have regional price comparison factsheets. Help Finder: online database of grants, discounts and free energy efficiency advice.

14 Extra support for advisers On the Phone Ask the Adviser: Support and guidance, allows you to retain case handling. Online Password protected website: targeted, issue specific factsheets and presentations. Your Questions: access to a more detailed knowledge base Consumer Community: network and support group for advice providers and frontline staff Contact : consumercommunity@consumerfocus.org.uk

15 Changes to the consumer landscape Abolition of Consumer Focus and Consumer Direct: govt asking Citizens Advice to take on functions OFT functions moving to competition commission and local enforcement (trading standards) BIS consultation on changes expected in mid-march The future for energy consumers Green Deal Smart meters Mitigating climate change impact on prices? Increases in debt levels

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