Energy firms 'fail to mention' reductions
Published On 13 December 2007
Utility companies often do not tell existing customers about tariff reductions, leaving many customers paying for more expensive services, according to a new study.Research carried out by Moneysupermarket found that people paying for older tariffs make the firms an extra £2.5 billion a year.
This could mean that 63 per cent of households, those that are paying a standard tariff, could cut energy costs by £150 by switching.
"Energy providers rarely, if ever, tell existing consumers about cheaper options, as the more expensive tariffs allow them to offset the great deals they offer," said Paul Schofield from the price comparison site.
"Allowing existing customers to languish on old tariffs is a money spinner, but it doesn't help build trust or loyalty."
Regulator Ofgem recently launched a new system of energy ratings to make it easier for consumers to understand the eco-credentials of different deals.
