Consumers 'could save on utility bills by switching'
Published On 24 April 2007
Some people are still paying too much for their utilities, the industry regulator has warned.The Office of Gas and Electricity Markets (Ofgem) found that a large price gap has opened up between the majority of suppliers - who announced price cuts earlier this year - and two small companies which are yet to reduce consumer prices.
According to Ofgem, customers who receive their utilities from EDF Energy could save £140 by changing to the cheapest supplier. Similarly, Scottish Power customers could reduce their bills by £112.
Ofgem's research found that consumers are increasingly prepared to move supplier if they feel they could get a better deal - 100,000 more people switched supplier in the first two months of 2007, compared to the year before.
Alistair Buchanan, Ofgem's chief executive, said that the figures showed that "Britain's energy market remains highly competitive.
"Competition is all about customer power – in a market where over 600,000 customers switched in the first two months of this year any supplier that tries to buck the market by not lowering their prices or failing on service risks an exodus of customers."
Karen Darby, founder of consumer website SimplySwitch, said that utility suppliers could no longer bank on consumer apathy.
"The message to energy companies should be loud and clear: switching suppliers is now so simple that people are no longer willing to put up with high prices or poor customer service."
