Dermot Nolan’s (OFGEM) keynote speech at today’s Future of Energy Supply Event was essentially one message – don’t put up with set prices and poor service, switch suppliers.
We have a habit in the UK to settle in with our energy suppliers. We have the notion that “Once its set up that’s all I have to do”. The truth is that Energy prices are rising dramatically, and without shopping around you won’t get the best price and service.
“It is a good sign that when consumers do vote with their feet, and walk away from suppliers who don’t deliver, it drives up standards across industry” -Dermot Nolan
The Competition and Markets Authority found that 17 MILLION customers were on their supplier’s standard, or “default” tariff. Meaning 17 million customers are paying the most expensive tariff their energy provider has. Since that 2015 report, those numbers have dropped to 12 million which is an improvement but still a long way from perfect. Of these 12 million it was also found that over 8.6 million haven’t switched supplier in 3 years, and 34% of customers have never switched suppliers according to the OFGEM Consumer Engagement Survey. The majority of these customers are paying much more than they need to be.
“Our vision is for a market where all consumers have the tools, and – importantly – feel empowered enough, to make active choices about who their supplier is or what tariff they’re on. There’s still a very long way to go.” – Dermot Nolan
What is needed in the market are simple ways to switch and compare prices. At the keynote, Mr. Nolan said that switching can and should go smoothly for customers. They need to be able to see accurate and accessible data to reduce the risks of switching going wrong, and make sure customers can easily get hold of information they need to get a better deal.
Energy isn’t an option, it’s a necessity and every business deserve the best deal for something that is a vital part of every day.
Read the whole Keynote speech here