ConsumerNews www.hertsdirect.org/tradingstandards Issue 8 Autumn 2009 Hertfordshire Trading Standards Energy Special October 19th-26th was Energy Savings Week and, with winter fast approaching, we ve decided to devote this issue to energy matters. Energy matters are high up the political agenda and the government is committed to tackling fuel poverty and unfair energy pricing. It s also accepted that many of the best deals are only available to people with access to the internet, which can cause problems for older consumers. We ve put together a number of articles which we hope will help consumers, particularly elderly and vulnerable householders, to get the best deals, save money and avoid scams and pitfalls. Topics include: Home improvements to help with energy efficiency and the grants that are available to help pay for them Information about how to find the most competitive price tariffs and what help is available for elderly or vulnerable householders Advice about switching suppliers and how to go about it Pitfalls to watch out for, including cold calling energy sellers who blitz a neighbourhood and sign up a lot of new customers with or without people s permission Information about cooling off periods for those who decide to switch supplier How to complain and where to go for help and advice on energy issues. In this issue Energy Special Energy Savings Week Saving energy - and money - in the home Energy selling at the door Pitfalls and Pointers Should you switch? Tips on changing energy supplier Gas and electricity Getting the best deals Prosecution roundup
Saving energy and money in the home The government is keen to encourage consumers to become greener and save money by improving the energy efficiency of their homes and increasing the efficiency of central heating systems. Old-fashioned energy saving tips include turning lights off, not overfilling kettles, showering rather than taking a bath, putting appliances like TVs onto standby and considering turning the central heating down by one degree, which can save up to 10% of the heating cost. Other measures can save even more: Loft insulation (of 270mm or around 10 inches deep) can save up to 110 per year Cavity wall insulation can save up to 90 per year. Check whether your house is suitable by calling the Energy Saving Trust on 0800 512 012 Solid wall insulation can save up to 300 per year Double glazing is pricey but can save up to 100 per year Using energy saving light bulbs can save up to 7 per year. over 60 and in receipt of certain benefits (income support, council tax benefit, housing benefit, job seekers allowance, pension credit or incomerelated employment and support allowance). There may also be grants of up to 300 available to those over 60 not in receipt of benefits who don t have a properly working heating system, towards repair or replacement of boilers. Those who don t qualify may find other ways of helping finance these energy efficiency improvements. Grants from local councils Many councils offer a number of schemes to help elderly householders with property There are various financial schemes available to help with the cost of these improvements, but it can be hard to unravel who s offering what, who s entitled to help and who isn t. Hertfordshire Trading Standards is issuing some advice, after experiencing an increased number of complaints and enquiries from homeowners confused about this topic, or suspicious of firms claiming they can do the job for a low price because of government grants available. Government help Official government help is operated by the Warm Front scheme (www.warmfront.co.uk, 0800 316 2805). Up to 6,000 is available for applicants who meet various criteria to cover the cost of insulation or heating improvement work. For elderly people this will include being
maintenance and energy improvements. Various grants are available, some of them means-tested, either direct through the councils themselves, or via partner energy efficiency companies. We ve put together a list of contact numbers and schemes run by Hertfordshire councils. Watford and Three Rivers Councils Energy Incentive Grants via Cocoonyourhome on 0800 804 8777 St Albans Home Repairs Assistance via Anchor Staying Put on 01707 255710 Welwyn Hatfield Home Repair Assistance scheme on 01707 357406 North Herts Home Repair Assistance grant on 01462 474000 East Herts Energy Efficiency and Decent Homes grants on 01279 655261 Dacorum Energy Conservation grants on 01442 228786 or HEEP (see below) Hertsmere, Stevenage and Broxbourne Herts and Essex Energy Partnership grants (HEEP) on 0800 980 6026. Reduced prices and offers from energy companies and installers The government has set Carbon Emission Reduction Targets (CERT) for UK energy suppliers, and many provide a range of offers which help reduce the cost of installing energy efficiency measures. Householders can benefit from offers from any of these companies, regardless of who their supplier is. Information about these offers is available direct from the energy suppliers themselves. Getting advice It can be complicated for consumers who don t qualify for grants, to work out which of these offers from energy companies are best or even to be aware of what help is available. Rather than relying on claims about grants and energy saving made by commercial companies, consumers should turn to independent organisations for help before deciding. The best source for independent advice is the government-funded Energy Saving Trust (www.energysavingtrust.org.uk, 0800 512012). They produce various publications including a guide to the grants available and a guide to energy saving measures in general There is also help and advice on the Consumer Focus website (www.consumerfocus.gov.uk) under the Helping Households, Help Finder section Both Cocoon and Herts and Essex Energy Partnership (HEEP) are organisations working in conjunction with various Hertfordshire local councils to offer grants. Cocoon can be contacted at www.cocoonyourhome.co.uk, or call on 0800 804 8777. HEEP can be contacted at www.heepgrant.org, or call on 0800 980 6026 Pitfalls to watch out for Some companies are targeting elderly consumers offering free home surveys with a view to offering energy efficiency home improvements like loft insulation. They often tell people that all or most of the work will be covered by a grant and these sales often take place in the consumers home following a sales call. Salesmen don t always tell the householder who is giving the grant or properly explain what part of the work will be covered by a grant, and this has led to difficulties with some consumers being billed for additional work they hadn t expected. Consumers should also be aware that all contracts for home improvement work that are agreed to in their home are subject to an automatic seven day cooling off period and this information should be given in written form. If the company wants to start work before the end of the seven day period, the consumer must sign to agree to this. After that the consumer can still cancel within the seven days but must pay for any work done up until that point.
Energy selling at the door Pitfalls and pointers In a typical year, Consumer Direct handles several thousand complaints about the marketing of gas and electricity, particularly from those who ve received a knock at the door from a salesperson trying to get them to switch supplier. While cold calling may be a great way for the companies to get new customers, the message from consumers is that they don t like the methods used and often feel misled into switching. It isn t illegal for energy companies to use door-to-door selling methods. They should be upfront about what they do, but sometimes over-zealous salespeople will say anything to get consumers to sign on the dotted line. They may say they ve come to check the meter, even though they re not from the consumer s existing supplier and have no interest in what the meter says Others will ask to see your existing bills, which have sensitive personal information in them, and say that they will be able to provide a cheaper service when this is not the case Others will discuss savings and get consumers to sign a form in order to receive further information, but this may turn out to be a contract to switch supplier. Some consumers have found the contract they ve been persuaded to sign has a very different tariff from what the salesperson promised In extreme cases salespeople failing to get consumers to provide their signature have simply forged it themselves. Consumers should always ask for proof of identity before talking to a salesperson on the doorstep, ask for information to be confirmed in writing, and be very careful about signing anything. Remember, no signature is required to read the meter, or to receive further information, or to confirm the salesman visited, or to allow the salesman to claim commission or to confirm the savings offered. Anyone feeling pestered by a persistent salesperson should ask them to leave and, if they won t, call the police. Consumers living in one of Hertfordshire Trading Standards No Cold Calling Areas can also report this to Trading Standards by contacting Consumer Direct in the first instance on 08454 040506. Consumers who ve signed up to an agreement in their home but feel misled, or have second thoughts, can cancel the agreement. Any contract signed in a consumers own home should include a cancellation notice allowing seven days to cancel the agreement. This notice should be separate to the rest of the contract. If no cancellation notice has been given, this should be reported to Consumer Direct on 08454 04 05 06. Making a complaint To complain about energy company selling tactics, or billing or other general problems, consumers should call Consumer Direct on 08454 040506. These complaints can then be reported to Consumer Focus, the government energy watchdog, and Trading Standards, who monitor the practices of any problem companies.
Should you switch? Tips on changing energy supplier With winter almost upon us, an uncertain economic climate and high energy prices, tracking down the cheapest energy and switching suppliers is certainly worth considering. Some problems The main problem for elderly consumers is that only around a third of those over 65 have access to the internet, and it is there that the best deals can be found by switching suppliers online. Research by Age Concern has shown that 75% of pensioners are unlikely to consider switching suppliers. Also, switching suppliers can be complicated and finding the best deal at any given time can be quite a job. This is why there are now so many price comparison services, but these are primarily online services, of less use to the elderly. Without access to internet price comparison information, older consumers hoping to switch suppliers for a better deal are left to rely on doorstep selling, an area where there are concerns about selling practices. Shopping around As with all purchases, consumers should shop around and get a few quotes before deciding. The best deal may not be the cheapest as prices quoted could go up and there may be qualifying restrictions on particular deals. Remember that suppliers offer great deals to new customers to persuade them to switch but may increase the price later on. Switching for the best deal is not a permanent fix, and consumers wanting the best deal at all times will need to switch frequently, which is a lot of work. Price comparison services There are numerous price comparison companies offering information about the best deals. They are primarily internet-based, but many offer telephone helplines too. Consumer Focus, the government energy watchdog, has twelve accredited price comparison services listed on their website (www. consumerfocus.org.uk) which are signed up to their Confidence Code. Consumers without internet access can call Consumer Direct on 08454 040506 and select the option for calls about energy suppliers to get information about these. We ve also produced a list of those who offer telephone as well as internet-based services. Energylinx 0800 849 7077 Energyhelpline.com 0800 074 0745 HomeAdvisoryService.co.uk 0845 1800 300 Unravelit 0800 279 4091 Uswitch 0800 404 7908 SimplySwitch 08000 111 395 TheEnergyShop 0845 330 7247 UKPower.co.uk 0845 009 1780 MoneySupermarket.com 0845 345 1296 SaveOnYourBills.co.uk 0800 055 3800 How it works Switching suppliers doesn t involve a physical change to how energy is supplied - cables and wires don t need to be touched at all, and only the company that sends the bill will be different. Where consumers opt to switch, the new supplier will inform the old one of the proposed change and arrange a switchover date, so there won t be interruption to energy supply. This process can take four to six weeks and consumers should receive a welcome pack from the new supplier explaining what s involved. Consumers should always check whether they need to cancel or alter existing direct debit payments to ensure they aren t billed by both suppliers.
Gas and electricity: getting the best deals Consumers spending more than 10% of their income on energy are considered to be in fuel poverty. The government is committed to reducing this by encouraging help for consumers to make energy efficiency savings, ensuring that fuel suppliers charge a fair price and provide social tariffs to help customers on the lowest incomes. In addition to implementing energy efficiency measures and switching suppliers, consumers can also make sure that they are getting the best deal from their current supplier by reviewing the tariff they are on and considering different payment options. Most of the best deals are internet deals, which is not much help for households without a computer, which is why Age Concern is calling for more action to improve the competitiveness of social tariffs and to remove penalties for pre-payment or paying with cash or cheque, rather than direct debit. We ve produced a rundown of the different types of tariffs available from most of the energy companies. Tariff Online tariffs Single fuel tariffs Dual fuel tariffs Fixed price tariffs Capped tariffs Green energy tariffs Economy 7 Market tracker tariffs Pre-payment tariffs Social tariffs How it works All billing is done via email, online account management, self meter reading. Consumers can obtain gas or electricity from separate suppliers and choose the best one for each. Energy companies offer loyalty reductions for choosing the same company for gas and electricity. You pay a fixed fee per unit for either 12 or 24 months. Guaranteed to remain a certain % cheaper than standard tariff until end of contract. Your supplier will commit to supply your energy from renewable sources or will invest some of your bill in renewable energy. You pay a much lower rate to use energy at quieter times. Like tracker mortgages, the energy price per unit tracks the market. You have a prepayment meter installed and you top it up by token, key or smartcard. These must be provided to eligible customers on very low incomes who need help with the cost of fuel.
Pros and cons Best prices but only for consumers with computer access. May be the cheapest option, but expect two lots of bills. Consumers unable to opt for an online tariff will usually find paying by direct debit is the next cheapest alternative. Consumers should also check to see if there are any cancellation/exit fees due for switching tariff before the end of the period. This is often the case for capped, fixed and market tracker tariffs. Usually better deal than single fuel and only one lot of bureaucracy to deal with. Usually more expensive, but you know what you ll pay. Usually more expensive and prices can still go up or down during the period. Pricier than the cheapest tariffs, but you are doing your bit for the planet. You must use your appliances like washing machine at night, or you may end up paying more. You need a different meter. You may save money, but prices may go up or down. Tariffs are generally more expensive but avoids paying large bills as you pay upfront. Ofgem require that these tariffs are the cheapest on offer, but this is not always the case. Winter fuel payments for the elderly Each year, the government makes winter fuel payments to help elderly people cope with the extra costs of budgeting through the colder months. Those over 60 (by September 27 2009) will be entitled to 125-250 tax-free. Those over 80 by the same date will be entitled to between 200 and 400 tax-free. Payment should happen automatically, but for more information call 08459 151515. Cold weather payments for elderly and vulnerable consumers Should the temperature fall below zero for seven consecutive days between November and March, pensioners in receipt of pension credit or others in receipt of income-related support allowances will receive an additional payment of 25. Payment is automatic via the benefits system. Sources of free, impartial help and advice Consumer Focus (via Consumer Direct) www.consumerdirect.gov.uk 08454 040506 Energy Saving Trust www.energysavingtrust.org.uk 0800 512012 Home Heat Helpline www.homeheathelpline.org.uk 0800 336699 Warm Front www.warmfront.co.uk 0800 316 2814
Prosecution roundup Landscaper lands in trouble A landscaper from Knebworth led his customers up the garden path by using a false address for his business. Lawrence Knowles, 51, of Hemel Hempstead Road, Redbourn, claimed on advertising boards, business cards and vehicles that his company, Premier Landscapes and Premier Home Improvements, was based at 483 Green Lanes, London. This turned out to the address of a London secretarial services firm which had provided him with an answering service before terminating his contract due to non-payment. Knowles was first arrested after calling on households in London Road, Knebworth in October 2007 but failed to turn up to court and was later re-arrested and brought to court in April 09 and charged with offences under the Trade Descriptions Act where he was later sentenced to a 500 fine. Giving out a false address might seem a minor matter, but it robs consumers of any means of redress when something goes wrong with the work that s been carried out. Paving the way to a big fine A paving company, trading as MC Paving Ltd of Luton were taken to court in August for falsely claiming to be a member of a Government-backed good trader scheme (Trustmark) and for failing to give a consumer in St Albans legal notice of their right to cancel their paving contract. The firm was fined 300 for each offence, along with an extra 700 for failing to leave the cancellation notice, plus 2,000 court costs. The firm s director, Michael Connors of House Lane, St Albans, was also given a 12 month conditional discharge for failing to leave the cancellation notice, fined 300 per false logo claim plus a further 1,180 court costs. The court viewed these offences seriously since companies operating like this make life harder for legitimate businesses trying to trade fairly, as well as causing problems for consumers who are entitled to rely on statements made by traders about their qualifications and approvals as well as having an automatic seven day cooling off period for most contracts made at the home, from both solicited and unsolicited visits. Consumers should always be advised to check up on traders before hiring them and to take the trouble to check out any claims they make about membership of trade associations. Details of the Trustmark scheme and a list of approved traders in Hertfordshire is available at www.hertsdirect.org/trustmark. We welcome comments and feedback on this newsletter and encourage you to circulate copies to clients and colleagues. This newsletter is also available on our website, or you can contact us if you would like to request additional copies. If you wish to publish any of the content of this newsletter, please acknowledge the source as Hertfordshire Trading Standards, and send a copy of the publication to us if possible. Advice Team Hertfordshire Trading Standards 45 Grosvenor Road, St Albans, Herts AL1 3AW Email: tradingstandards@hertscc.gov.uk Tel: 01727 813849 (admin only) 08454 040506 (for advice Consumer Direct) www.hertsdirect.org/tradingstandards Design ref: 055429