Finance News

Renters missing out on energy savings by not switching providers

Ryan - October 10, 2016

Latest analysis has revealed that a number of UK renters could be missing out on savings totalling more than £1bn, due to lack of knowledge surrounding energy suppliers.

This lack of knowledge concerns having bills included in rental payments and failing to discuss matters with landlords , according to MoneySuperMarket.

Lack of information

The report examines energy provider switching habits among renters and shows that nearly half of UK renters were given no information on their provider at the start of their tenancy.

12% of tenants said that they feel their landlord is solely responsible for switching energy providers. This is greater amongst younger tenants, with 20% of those between 18-34 believing this to be the case.

One-tenth of renters said that they did not know who their energy provider is, with 6% saying they cannot locate their meter!

Renters missing out on energy savings by not switching providers

Renters missing out on energy savings by not switching providers

Rules

Rules outlined by Ofgem, the energy market regulator, state that if a tenant’s name is on the energy bill, they are entitled to switch provider themselves. Even if a landlord’s name appears on the bill, with the amount owning paid by the tenant in rental costs, it is worth discussing switching provider should potential savings be made.

Stephen Murray, energy expert at MoneySuperMarket said: ‘When it comes to energy switching in rented property, there is some confusion over who takes responsibility. In an ideal world, you would be provided with information on who the supplier is and the average bill size at the start of the agreement. Renters would then be encouraged to shop around for a cheaper tariff and make the switch. However, it seems this isn’t happening in far too many instances.’[1]

‘Ofgem has stated categorically that tenants are entitled to change supplier at any time if they are responsible for paying the energy bill, and should not be unreasonably prevented from doing this. There are savings of up to £3594 per household to be made by switching suppliers, so it pays to take control and shop around. But it’s always important to keep your landlord up to speed with any change you plan to make, Murray added.[1]

[1] http://www.propertyreporter.co.uk/landlords/renters-risk-1bn-on-expensive-energy-deals.html

 

 

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