Energy Best Deal -
Facilitator background notes Page 2
Introduction How to get the best deal
2
Frequently asked questions
2
Who can switch?
2
Are there any reasons why I might not be able to switch?
2
How do I switch?
3
Comparing prices
3
Using a switching site
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How can I compare prices if I don’t have internet access?
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Switching
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What happens next?
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Is there anything I need to do?
4
Will my supply be interrupted?
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I struggle with my meter - can I get them to move it?
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Protection against disconnection
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My supplier has told me that I owe money due to a price increase when I have a prepayment meter - how is that possible?
5
What happens if I switch and my new supplier changes their prices?
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Moving into a new home
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How do I find my electricity (MPAN) number?
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How do I find my gas (MRPN) number?
7
What are social tariffs?
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Struggling to pay your bills?
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Help for elderly, low-income or disabled customers
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England
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Scotland
9
Wales
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Problems and complaints
Energy Best Deal - Facilitator background notes
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August 2009
Introduction Citizens Advice and energy regulator Ofgem have drawn up some simple advice on how to ensure you are not paying more than you need to on your energy bills. Two quick steps to ensure this are: 1. shop around to get the best deal, and 2. take advantage of the help available with your energy bills. Do these two things and you could potentially see a reduction in your energy bills.
How to get the best deal If you never changed your energy supplier you could be paying more than you need to for your gas and electricity. Depending on where you live, on average you could save: £91 a year if you pay by Direct Debit, £86 a year if you pay be card, key or token meter, or £73 a year if you pay by cash or cheque. Financial help is also available for some people from suppliers and Government. Energy Best Deal has already helped many people including: A lone parent on low income received help from the Warm Front scheme which paid for a replacement boiler, loft insulation and energy saving light bulbs. A disabled person notified their energy company about their disability and the company changed their meter and put them on a cheaper tariff. Energy Best Deal materials can be found on CABLINK, Adviser Net and Ofgem’s website.
Frequently asked questions Who can switch? Nearly everyone can switch supplier. You can change energy supplier even if you have a token, key or card meter and have debts of up to £100.
Are there any reasons why I might not be able to switch? Most people will be able to change their suppliers. But there are times when changing may not be possible, for example if: you have a fixed-term contract be aware that you may be charged a fee if you try to switch during the term, but this is uncommon. Most customers have contracts that allow them to switch supplier at any time without paying a penalty, -2– Energy Best Deal - Facilitator background notes
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you rent your home and pay the landlord for gas and electricity either as part of your rent or separately, you rent your home and your lease specifies that you cannot change the supplier, and you have unpaid debts with your supplier – although this does not necessarily mean you can’t switch, you may have to clear the debt before you can. However, in some cases the unpaid debt could be transferred to a new supplier.
How do I switch? Before you switch you need to decide what sort of deal you would like. There are many different types of deals available, the most common are: dual fuel – getting your gas and electricity from the same supplier. Many suppliers offer money off your bills if you take both gas and electricity from them, fixed rate – this means the price of your energy will not change for the duration of the deal, and internet deals – suppliers offer discounts for customers who receive their bills over the internet.
Comparing prices To see if you are getting a good deal for your energy you need to find out how much you are paying. It’s a good idea to get a copy of your last couple of bills or, if you use a card, token or key meter, to have an idea of how much you spend a week/month on energy. If you cannot find any recent bills you could use the table below to estimate your usage. It is also a good idea to get the following information together: name of your current supplier(s) tariff name your post code If you have internet access you can use any of the switching sites approved by Consumer Focus: Website www.theenergyshop.com
Telephone 0845 330 7247
www.moneysupermarket.com
0845 345 5708
www.uswitch.com
0800 404 7908
www.ukpower.co.uk
0845 009 1780
www.saveonyourbills.co.uk www.unravelit.com
0800 055 3800 0800 279 4091
www.energyhelpline.com
0800 074 0745
www.energylinx.co.uk
0800 849 7077
www.switchwithwhich.co.uk
N/A
www.confused.com www.homeadvisoryservice.com
N/A 0845 1800 300 -3–
Energy Best Deal - Facilitator background notes
August 2009
www.simplyswitch.com
0800 0111 395
Using a switching site Most of the switching sites search for the best deal based on price. However some will allow you to find the best deal based on your preferences or priorities such as capped price deals or “green” tariffs. Some sites also allow you to see how different companies compare on customer service.
How can I compare prices if I don’t have internet access? You can phone Consumer Direct on 08454 040506 and they will send you a factsheet with the deals available in your area. You may get a call from sales people from energy companies offering you new deals, but it is worth checking with other suppliers to make sure they are offering you the best deal.
Switching Once you've chosen a new tariff that meets your needs, you can either switch using an internet price comparison service or by contacting the supplier you would like to switch to and providing them with some basic billing information so they can set up your new account as smoothly as possible.
What happens next? The new supplier you choose will be responsible for organising the switch. The whole process can take up to 6-8 weeks. During that time your gas or electricity will continue to be supplied by your old supplier. You will not be cut off or be without gas or electricity whilst your supplier is being changed.
Is there anything I need to do? Your new energy suppliers will take responsibility for contacting and prompting you through the switching process. If you pay by Direct Debit you should also contact your bank to cancel the Direct Debit arrangements after your final bill has been paid to your old supplier.
Will my supply be interrupted? No. Your new supplier will use the same meters, wires and supply lines as your previous supplier. They will sort out the change over by themselves.
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I struggle with my meter - can I get them to move it? If you are on the Priority Services Register (PSR), then yes you can, although you would normally have to pay for the move. If you are on your supplier's Priority Services Register, and cannot use the meter because it is in a very difficult place, you may be able to get your supplier to move it free of charge, by up to 2 metres. If it turns out the meter cannot be moved, the supplier will arrange for it to be read at least once every quarter.
Protection against disconnection Suppliers are not allowed to disconnect you even if you have a debt: from 1st October to 31st March if everyone in the home is of pensionable age. Make sure your supplier knows this, by telling them when you join their Priority Services Register, from 1st October to 31st March if someone in the home is chronically sick or has a disability, if the debt you owe is to a previous supplier, if the debt is not for the gas or electricity you have used. For example, if you bought a new boiler from your supplier but then could not afford all the payments, the supplier is not allowed to disconnect the supply to your home, and if you have been made bankrupt, a supplier cannot disconnect for a debt that was built up before the date of the bankruptcy order. Note: If there is a safety problem with your supply, it could still be disconnected.
My supplier has told me that I owe money due to a price increase when I have a prepayment meter - how is that possible? Token meters are the only type of prepayment device that must be manually adjusted after every price rise. Energy companies have been slow to recalibrate or adjust these meters. If a prepayment meter hasn't been reset for months or even years, people may have built up hundreds of pounds of debt which is likely to be added to the meter. Often consumers only become aware of this problem when they switch supplier. If you are a token meter user and your supplier is asking you to repay a debt you did not expect, you should ask to check the following: did your supplier warn you that your prices were increasing? did your supplier warn you that your meter needed to be adjusted and, if it didn't happen, you would be at risk of arrears? were you advised to contact your supplier as soon as possible to arrange a recalibration? prior to the visit to recalibrate your meter, when was the last time you had a visit to reset your meter? has your supplier offered any assistance? -5– Energy Best Deal - Facilitator background notes
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Once you have considered the above points, you should first of all contact your supplier and explain why you feel this is unfair and highlight the answers to the above questions. If you are not satisfied contact Consumer Direct for more advice.
What happens if I switch and my new supplier changes their prices? There is a chance that your new supplier may make changes to their prices before you are fully switched, as the process takes on average 6-8 weeks. Those new prices will apply to your tariff unless you have chosen a product that guarantees the price you will pay for a certain period. These are known as capped tariffs and they usually have a fixed term. Energy suppliers have to inform you if they change their prices.
Moving into a new home You can change your energy supplier if you move into a new home, but first you will need to find out which firms are supplying the property. In some circumstances you may require your gas and electricity meter numbers known as MPRN (gas) and MPAN (electricity) numbers.
How do I find my electricity (MPAN) number? Your MPAN is the unique identifying number for the electricity meter at your property, commonly referred to as a "Supply Number" or "S" number and can be found on your electricity bill. If you can't locate your "S" number, you should contact your current electricity supplier, who will be able to tell you the number. On your bill, your supply number will normally be depicted with a large "S" and a grid of numbers. If you have just moved into a new home you can find your MPAN number by contacting the relevant number from the list below. Region Eastern England East Midlands London Northern Wales, Merseyside & Cheshire West Midlands North Eastern England North Western England Northern Scotland Southern Scotland South Eastern England Southern England Southern Wales South Western England Yorkshire
Contact number 0870 196 3082 0845 603 0618 0845 600 0102 0845 270 9101 0845 603 0618 0845 070 7172 0870 751 0093 0870 900 9690 0845 270 0700 0845 601 5467 0870 905 0806 0845 601 5972 0845 601 5972 0845 330 0889
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How do I find my gas (MRPN) number? Your MPRN is the unique identifying number for the gas meter at your property, commonly referred to as an "M" number, and should be printed on a recent gas bill (usually on the first page or the reverse of the first page). If you can't locate your MPRN, or if you have just moved into your home and do not have a gas bill, you can call the Meter Number Helpline on 0870 608 1524.
What are social tariffs? Most fuel suppliers offer reduced rates to low-income or vulnerable customers, such as older people, or people with long-term ill health. These reduced rates are known as social tariffs. Each supplier has its own set of rules about who qualifies for the reduced rates. For more information, contact your fuel supplier and ask for details of their social tariffs. The link below is to a document published in August 2009 – it has a good comparison table in Appendix 1 showing the various social programmes that the big 6 suppliers offer. Document also includes suppliers’ trust fund information. http://www.ofgem.gov.uk/Sustainability/SocAction/Suppliers/CSR/Documents1/Monitoring_su ppliers_social_spend_2008_09_final.pdf Suppliers agreed to increase their collective expenditure on their social programmes by £225 million between 2008 and 2011. In addition to social tariffs, suppliers can count other initiatives towards the new spending commitments, such as: other rebates or tariff discounts; Trust fund contributions; funding for partnerships with intermediaries and for benefit entitlement checks; energy efficiency initiatives that are additional to existing statutory obligations; and costs of aligning pre-payment meter tariffs with lower tariffs where this is effectively targeted at fuel poor and vulnerable customers.
Struggling to pay your bills? Contact your energy supplier Most energy suppliers offer help for customers on low incomes, who are struggling to pay their bills. Your first step should be to call your supplier to see how they can help. Home Heat Helpline 0800 33 66 99 This is a free national helpline run by energy suppliers for customers having difficulties paying their fuel bills. It offers advice on cheaper payment schemes, grants for insulating your home, how to get on to the Priority Service Register (PSR) for extra services and information on extra government benefits that you may be entitled to. For more information visit www.homeheathelpline.org. Priority Service Register Suppliers are required to establish and maintain a PSR which lists their domestic customers who are of pensionable age, disabled or chronically sick. Customers on the PSR are eligible for additional services free of charge and suppliers are prohibited from -7– Energy Best Deal - Facilitator background notes
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disconnecting a premises occupied by a customer eligible for the PSR during the winter months. Help with energy efficiency Energy suppliers are obliged by the government to offer you help and advice in using energy efficiently. So it is always worth contacting your energy supplier to see what help is available. Energy Saving Trust This organisation has a network of local offices across the country which can help with energy efficiency advice. Call 0800 512 012 for more information. Help with debt Help and advice with debt is available from your local CAB, details of which can be found from www.adviceguide.org.uk.s Keep Warm Keep Well Keep Warm Keep Well is a national campaign to reduce cold-related illness and deaths during winter. You'll find information and advice about how to stay well in winter by keeping warm and what financial support is available. More information is available from: http://campaigns.direct.gov.uk/keepwarmkeepwell/index.html.
Help for elderly, low-income or disabled customers There are government initiatives available for elderly and disabled customers that can make energy more affordable. These are as follows: The Winter Fuel Payment The Winter Fuel Payment is an annual payment to help with the costs of keeping warm in winter. The payment is available to people living in Great Britain or Northern Ireland who are aged 60 or over. For individuals between 60 and 79 the payment is either £125 or £250, depending on individual circumstances. Those who are aged 80 or over may receive £ 200, £275 or £400, depending on individual circumstances. For more information on Winter Fuel Payments contact 08459 15 15 15 or visit www.thepensionservice.gov.uk/winterfuel/home.asp
England Warm Front The Government’s Warm Front Grant can provide a package of insulation and / or heating improvements up to a maximum value of £3,500 (or £6,000 where oil, low carbon or renewable technologies are recommended) for some home owners and those renting from private landlords. For more information contact the Warm Front team on 0800 316 2805 or go to www.warmfront.co.uk Applicants meeting any of the following three criteria may be eligible for a Warm Front Grant. The term 'householder' includes the applicant's spouse, or partner, if they are living with the -8– Energy Best Deal - Facilitator background notes
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applicant. Householders aged 60 or over in receipt of one or more of the following benefits: Income Support, Council Tax Benefit, Housing Benefit, Job Seekers Allowance (incomebased), income-related Employment and Support Allowance and Pension Credit. Householders with a child under 16, or pregnant women with maternity certificate MATB1, in receipt of one or more of the following benefits: Income Support, Council Tax Benefit, Housing Benefit, Job Seekers Allowance (incomebased), income-related Employment and Support Allowance and Pension Credit. Householders in receipt of one or more of the following benefits: Working Tax Credit award (with an income of less than £16,040, which must include a disability element). Disability Living Allowance Child Tax Credit (with an income of less than £16,040) Housing Benefit (which must include a disability premium) Income Support (which must include a disability premium) Council Tax Benefit (which must include a disability premium) War Disablement Pension (which must include a mobility supplement or Constant Attendance Allowance) Industrial Injuries Disablement Benefit (which must include a Constant Attendance Allowance) Attendance Allowance If you are not in receipt of the benefits listed above, but feel you may be eligible for a Warm Front Grant, please contact the Benefit Entitlement Check team on freephone 0800 072 9006.
Scotland Energy Assistance Package Funded by the Scottish Government the Energy Assistance Package gives advice and support to help consumers cut fuel bills and make homes warmer / comfortable. Depending on circumstances consumers could benefit from a maximum of £6,500 of work being done to the home to improve the energy rating (through insulation, new boiler, draught proofing etc). For more information please contact them on 0800 512 012 or visit their website www.energyassistancepackage.com
Wales The Home Energy Efficiency Scheme The Home Energy Efficiency Scheme (HEES) provides a package of heating and insulation improvements up to the value of £3,600 to eligible customers. For more information contact the Home Energy Efficiency Society on 0800 316 2815 or go to www.heeswales.co.uk
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Problems and complaints Consumer Direct If you have a problem or complaint you should contact your supplier and give them the chance to put things right. If you are still unhappy you can contact the consumer body Consumer Direct. They can be reached on 08454 04 05 06. Energy Ombudsman If you find yourself in a dispute with an energy company there is an independent Energy Supply Ombudsman you can call once all other resolution avenues have failed. Unlike Consumer Direct this organisation can offer customers up £5,000 compensation. You can contact the ombudsman on: 0845 055 0760 or 01925 530 263 or visit their website on www.energy-ombudsman.org.uk.
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