Gathering the information prior to switching

Information required from the consumer:

• ï‚· Name of current tariff
• ï‚· Payment method
• ï‚· How much the energy has cost over the last year
• ï‚· Usage (in kWh) over the last year
• ï‚· Property postcode
• ï‚· Metering Point Administration Number (also known as the MPAN, ‘Supply number’ or the ‘S’ number). This can be found on the electricity bill with a large S in front of it, followed by a grid of 13 numbers
• ï‚· Meter Point Reference Number (MPRN or M number) which should also be printed on the gas bill

The usage and cost of the fuel can be calculated using energy bills. Energy bills now include an ‘about your tariff’ section which contains some of the key information required to facilitate a switch or price comparison. The most helpful document is the annual statement/ summary.

The statement/ summary should include:

• ï‚· a reminder of the principal conditions of the customer’s contract;
• ï‚· information about any premiums or discounts that may apply to the customer’s tariff as compared to the supplier’s standard tariff where payment is by direct debit;
• ï‚· a reminder that the customer can switch along with advice on how to do so;
• ï‚· a record of how much energy has been used in the previous 12 months;
• ï‚· the name of the customer’s current tariff; and  an estimated cost in £/ year of the customer’s supply for the next 12 months if the customer remains on the same tariff.

The consumer can contact their existing supplier to ask them for a prediction of usage and cost over a twelve month period.

For consumers using a prepayment meter having an estimate of how much they spend on fuel in a week or month during the summer and winter months will be helpful.

Finding information 

Price comparison information enables the consumer to compare the prices across all suppliers. This information can be accessed online or by telephone.

The consumer can contact a supplier or use an internet comparison website, many of which can be contacted by telephone if preferred.

It is advisable to use a comparison website that is accredited by Ofgem and complies with the Confidence Code.

The new Confidence Code went live on 1 April 2015. From this date, accredited sites will be required to adhere to the new requirements, strengthening the service they provide to consumers.

The new Code means accredited sites must meet tighter standards on how tariffs are displayed so consumers can be confident they can find the best deals in the market. They will also have to list prominently which energy companies they have commission arrangements with, and make it clear that they can earn commission on certain tariffs.

The changes will help customers make an informed choice when using an accredited comparison site. They are:

ï‚·Banning a default partial view. Sites must show all tariffs available in the market unless customers actively choose to select to see a smaller number of tariffs.

ï‚·Ending confusing language. The wording of any choice must be very clear to site users. Sites must test their messaging with consumers and be able to prove that it is clear and simple. If a site cannot demonstrate this, it will not be able to give customers a choice of view, and will have to show all tariffs. The wording of this choice must be approved by Ofgem.

ï‚·Making commission arrangements transparent. Sites must explain clearly that they earn commission on tariffs that customers can switch to directly through the site.

Ofgem has created a guide (‘Go Energy Shopping’) to show how reforms to the energy market can help consumers compare tariffs and get a better deal on their gas and electricity bills.

The website includes:

• ï‚· tools to help people compare the different tariffs
• ï‚· glossary explaining the language used on bills
• ï‚· links to other useful sites – including price comparison sites which have the Ofgem Confidence Code
• ï‚· A downloadable guide to switching

Note: the price comparison sites listed below are displayed in alphabetical order

Note: that some of these telephone numbers are not free from either a landline or a mobile phone.

Comparison tools – Tariff Information Label (TIL), Tariff Comparison Rate (TCR), Personal Projection and QR Codes

Recently a number of comparison tools have been introduced into the market to help consumers compare deals. These include:

1. Tariff Information Label (TIL)
2. Tariff Comparison Rate (TRC)
3. Personal Projection
4. QR codes

Potential savings

The potential savings the consumer makes will be dependent on:

• ï‚· Where the consumer lives (as prices vary across the country)
• ï‚· Whether the switch involves one fuel or both
• ï‚· The payment method

According to the Department for Business, Energy and Industrial Strategy (BEIS) significant savings can be made, for example, those customers who have never switched and pay by standard credit could save up to £200 a year by switching supplier and paying by direct debit.

Collective Purchasing and Switching Schemes 

Collective purchasing and switching occur when a group of consumers’ band together to negotiate a better deal with their gas and electricity suppliers. There is no set model for how individual schemes will operate; however, this kind of activity will usually be facilitated by a third party who works on behalf of the consumers.

In general, collective switching is where a third party actively negotiates a better tariff on behalf of the consumers they represent. Collective purchasing is where the third party or collective is directly purchasing from the gas or electricity supplier.

The exact information required from the consumer participating in the scheme will depend upon the collective scheme. Initially they may be asked to register their interest in joining a scheme. The organisation should be clear about what information they need and why they need it, and when they need it by.

An organisation will in most cases need to build up a picture of the consumer’s current energy use and preferences in order to negotiate on their behalf. It is likely that the consumer will be asked for the following information:

• ï‚· name, address and contact details;
• ï‚· details of current tariff and energy supplier;
• ï‚· if they are on a fixed term contract and whether this is subject to a termination fee;
• ï‚· how much energy they use per year;
• ï‚· how they pay their bill (direct debit, cash or cheque, pre-payment); and
• ï‚· their preferences, for example, if they would be happy to change the way they manage their account in order to save money, or whether they would prefer their energy to come from renewable resources.

How the process works can vary from scheme to scheme. However, the main stages consist of the third party promoting/ marketing the scheme, gathering information from interested consumers, negotiating with suppliers, informing consumers of the deal and then managing the purchase/ switch on behalf of those consumers who decide to go ahead with the deal.

Once the consumer has chosen a new supplier they can either switch using an internet price comparison site or by contacting the supplier directly.

When the best deal for the consumer has been identified contact the new supplier. If a price comparison website is used they will contact the supplier on the consumer’s behalf.

It is worth having the contact details for both the old and new supplier in case there is a need to contact them during the process.

The new supplier will write to the consumer within seven working days to confirm the details of the switch. The energy contract can be agreed over the telephone, online or signed face-to-face with a sales representative from the fuel supplier.

The new supplier will contact the consumer’s current supplier for them. The new supplier will write to the consumer to confirm the start date and request a meter reading. This reading will be sent to the existing supplier, enabling them to send a final bill.

Check the consumer’s final bill from the old supplier. The consumer will have to pay for all the energy used up to the date of the switch.

Suppliers have to change their systems to offer the three day switch after a fourteen day cooling-off period (during which the consumer can cancel the contract) but at present not all are ready to offer this. Therefore, some suppliers

will take longer to complete the switch. The three calendar days begins after any raised objections have been resolved and all relevant information received.

The consumer will need to remember to cancel any payment method (for example, direct debit) with the old supplier once the final bill has been settled.

During the switching process it is helpful to keep a file or folder containing the following information:

• ï‚· Date and time of contact with supplier/ comparison site
• ï‚· Name/ contact details of the supplier’s/ comparison site’s representative
• ï‚· Details of agreed deal/ contract
• ï‚· Final meter readings and date
• ï‚· Any letters/ emails
• ï‚· Final bill from former supplier

Redress mechanism 

If there are any difficulties during the process the consumer should contact the supplier in the first instance.

An erroneous transfer occurs when a consumer is switched to a new supplier without their consent. This can happen due to a genuine error, for example, a mix up over address, and in the case of a sales representative misleading a consumer or even forging signatures on contracts. The consumer will often be alerted to the switch by a goodbye letter/ card or final bill from their current supplier or a welcome letter from the new one. In this instance the Erroneous Transfer Customer Charter applies. The charter sets out the minimum level of service the consumer can expect if they have been erroneously switched. It does not apply if the consumer has simply changed their mind during the switching process. The consumer will have to pay for any energy used during the erroneous transfer, but they will not have to pay anything to the new supplier.

If the consumer requires advice about  resolving any issues that occur during the switching process they can contact the Citizens Advice consumer helpline – 03454 04 05 06 and 18001 followed by 03454 04 05 06 for textphone.

If the consumer makes a complaint to their supplier and it has not been resolved after eight weeks, they can contact the Energy Ombudsman. The consumer can take their complaint to the Ombudsman earlier if the supplier sends them a ‘deadlock letter’.

A deadlock letter confirms that the supplier has investigated the complaint and considers the matter is closed. The Ombudsman will look into the complaint and can award consumers up to £10,000 in compensation, although typical payments are around £132. Using the Ombudsman is free. Energy suppliers have to pay for every case that gets to this stage.

Contact details for the Energy Ombudsman:

Telephone: 0330 440 1624 (lines are open Monday to Friday from 9am until 5pm)

Textphone: 0330 440 1600