Energy consumers losing £170 by not switching

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Energy customers could be losing £170 a year by not shopping around, Ofgem has revealed.

The UK energy regulator says customers who have not switched are paying more than they need to. 

Ofgem has launched an online element to its Energy Best Deal campaign with Citizens Advice in an attempt to get consumers more engaged with the energy market.

The campaign aims to make people aware of the savings that can be made by switching fuel providers or negotiating with existing providers. It also provides information about the help available from energy suppliers and the government for people struggling to pay their gas and electricity bills.

The scheme already offers face-to-face advice to consumers but will now include online advice videos for anyone wishing to switch providers.

Last month, Ofgem's Retail Market Review showed that energy companies make higher profits from consumers who do not switch. Ofgem's research also shows that only one-in -five consumers say that they are actively engaged in the market.

John Rhodes, head of financial capability at Citizens Advice says: "At a time when utility prices are once again rising, it is particularly important that hard pressed consumers don't spend more than they need to."

Check out the Moneywise Energy Switcher to see if you could save money on your utility provider

Ofgem claim the campaign has helped 60,000 customers to switch since it was launched in 2008.

British Gas, Scottish Power, Scottish and Southern Energy, Npower, E-ON and EDF have all hiked their prices in recent months.

Last month a survey by uSwitch found five million households are in the red when it comes to energy bills. It claims consumers now owe an average £126 each to energy supplier.


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