Switching tenants on to changing energy suppliers
AFS Team·13 September 2013·3 min read
Ofgem is concerned that tenants who want to switch to cheaper supplies are denied the right – and reckons 77% of those who could make the change to save money have not bothered.
On average, says Ofgem, tenants could save an average £190 a year by switching.
To help landlords, letting agents and tenants make the right decisions about changing utility suppliers, Ofgem has published a booklet.
The publication points out that any tenant directly paying an energy supplier has the right to change if they wish.
The guidance covers gas and electricity suppliers and aims to explain the rights of landlords and tenants.
“The key energy right is that where a tenant is directly responsible for paying the energy bill they have the right to choose their own energy supplier. The landlord or letting agent should not prevent this,” said Ofgem.
Ofgem also explains that some landlords and letting agents have tie-in deals with supplier. Even if these deals are specifically mentioned in the tenancy agreement, if the tenant is paying the bill directly, they still have the right to switch to another supplier of their choice without incurring any exit fee.
Philip Cullum, Ofgem’s Partner, Consumer Policy and Demand Side Insight said: “At a time when 9 million homes are rented and budgets are tight, it is important that consumers are clear about where they stand when choosing and switching their energy supplier.
“Our research shows that tenants that have not switched could save an average of around £190 on their annual energy bill. Ofgem’s clear guide and top tips are intended to empower consumers when navigating the energy market and help them to find their best energy deal. It is all part of Ofgem’s work to make the market simpler, clearer and fairer for consumers.”
The guidance is part of Ofgem’s work to simplify the energy market.
