Energy Switching GuideHelping tenants reduce their gas and electricity bills

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Foreword by David Orr chief executive, National Housing Federation

Over the last few years, all of the big energyfirms, except for Scottish Power, chargedprepay meter customers more for their gasand electricity than anyone else – eventhough most are on low incomes. In someinstances, prepay meter customers paid£500 per year more than customers on thebest deals.

We know that one in three social housingtenants use prepayment energy meters. Somehousing associations say that up to 70% oftheir tenants use these meters to help thembudget their energy expenditure.

That’s why the National Housing Federationlaunched a campaign with housingassociations to fight this injustice.

Since we began in 2007, hundreds of housingassociations and their tenants have called onMPs, energy suppliers and the Government toend this unfairness. We brought our campaignto every national newspaper and most of theregional press. We had a mountain to climb inconvincing energy suppliers that this was theright thing to do for customers when theenergy market regulator, Ofgem, opposed it.

In February 2010, British Gas became the lastof the ‘big six’ to remove the prepaymentmeter premium.

This victory is an incredible testament to whatcan be achieved when we all pull together.Compared to prices when we began, ourcampaign has saved prepay customers around£473 million a year.

Of course, scrapping the premium paid byprepayment customers is only part of theanswer, but it signals a symbolic shift in thebalance of power between the energycompanies and the rest of society.

We have decided to update the EnergySwitching Toolkit in recognition of the fact thatenergy costs are still a significant call on theincomes of social housing tenants. We haveincluded a new ‘easy read’ section, authoredby Yarrow, to help you discuss this complexsubject with tenants who have learningdifficulties.

I hope this toolkit will help you provide yourstaff and tenants with the information theyneed to get the best possible energy deal thiswinter.

David Orr - chief executive

“This victory is anincredible testament towhat can be achievedwhen we all pulltogether. Compared toprices when we began,our campaign has savedprepay customers around£473 million a year.”

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CONTENTS Foreword 3

Introduction 5

What’s new:

1. Ending the prepay meter rip-off 8

2. New help for customers 8

3. Smart meters for all 10

Understanding the issues:

4. Prepayment meters and other payment methods 12

5. How to save money by changing payment method or supplier 18

6. Help for your tenants - ‘social tariffs‘ and assistance schemes 22

7. How to make a complaint 28

8. Contact information 30

Communicating to tenants:

9. Learning from the Castle Vale project 32

10. Advising people with learning difficulties 44

Index 53

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Introduction

The gas and electricity market in England,Wales and Scotland (Northern Ireland has adifferent system) is complicated, withconsumers having to pick their way through amaze of different offers, price plans and waysto pay. Too many consumers pay more thanthey need to for their gas and electricitybecause they are reluctant or unable to takeadvantage of the best offers available.

This toolkit is aimed at housing associationsthat want to run projects to help tenantsreduce their gas and electricity bill bychanging which company supplies their energyand the way they pay for it. Potentially thereare savings to be made: up to £300 a year forsome consumers. Changing payment methodand supplier should be an easy process andproviding relevant and comprehensive adviceshould take no more than 15 minutes perconsumer. This makes any successful projecteasy to justify in terms of value for money.

The tenants who will benefit most are thosewho:

• Pay using a prepayment meter.

• Pay using a weekly or monthly budget card.

• Pay by cash or cheque when the bill comes.

• Have never switched energy supplier.

The toolkit is based on a pilot project carriedout by the National Housing Federation,Energywatch and Castle Vale CommunityHousing Association in the Castle Vale area ofBirmingham between February and April 2008.This toolkit also builds on our learning fromthe Federation’s campaign to get a better dealfor prepayment meter customers.

The project identified two main issues that arecrucial to the success of such schemes:

1. Persuading people to participate in theproject and seek advice about the best dealson offer. In Castle Vale this appeared to hingeon establishing the credibility andindependence of the project and the advicebeing given. Residents were extremely cynicalabout anyone giving advice on the price ofenergy, fearing that it was biased in favour of aparticular energy company, or that it was partof a sales drive by an energy company.

2. Having the knowledge to answer questionsand to help solve the variety of problemspeople experience in relation to their gas andelectricity supply.

This toolkit describes how the project tried toovercome these issues. It also tells you whereto find information to help consumers solvetheir gas and electricity problems.

John Pierce, campaigns executive

John led the campaign to victory in 2010 whenthe final energy supplier removed its prepaypremiums.

The campaign was launched in January 2007,when the six million energy customers who payup front to heat and light their homes viaprepayment meters paid over £100 per yearmore than customers who pay quarterly fortheir energy. Some prepayment customers werebeing charged £300 a year more than those onhigher incomes paying by online debits.

We were extremely exercised about this issuebecause a large proportion of housingassociation tenants paid this premium to heatand light their homes. However, back then wedidn’t expect our campaign to play a part in acomplete overhaul of energy pricing and saveprepayment meter customers about £473million a year.

For the first 12 months of the campaign, wespent most of our time explaining to journalistsand MPs what prepayment actually was and whyit wasn’t acceptable that these low incomehouseholds had to pay the most to heat andlight their homes.

In 2008, energy suppliers shot themselves in thefoot by deciding to increase their energy pricestwice in one year. With a 35% rise in gas pricesand with five million households forced into fuelpoverty, the pressure was on suppliers foraction.

In response to this public outrage the energymarket regulator Ofgem was forced toinvestigate how energy suppliers calculatedtheir prices and to see if this was actually fair.

While all of this was happening, hundreds ofletters were sent from housing associationsdemanding fairer energy prices for theirtenants. The Federation was raising the issue inthe national newspapers and news

Section 1:

Ending the prepaymeter rip-off

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programmes. The highlights appeared on BBCWatchdog twice and stories ran constantly inthe News of the World, The Guardian, TheTelegraph and on BBC News.

In September 2008, we ran National EnergyAction Week. Many housing associations tookgroups of affected tenants to their MP’sdoorstep calling for action. MPs have said thatthe real strength to our argument was thathousing associations across the countrybacked us.

By the end of that year, E.ON and Npower,who had charged the highest premium in thepast, finally got the message and removedtheir gas and electricity prepayment meterpremium. Scottish Power had already done sofor both in early 2007.

By 2009, the issue of prepayment meterpremiums was a political hot topic. TheGovernment promised action if Ofgem and theenergy suppliers failed to address theproblem. In the end this was all hot air asOfgem and the Government decided it wasacceptable for energy suppliers to chargemore to prepay meter customers because theywere more expensive to run.

And so we fought on, working with a numberof MPs, led by former MP John Austin andAlan Whitehead MP, to introduce a new law toban charging the highest tariffs to prepaymentcustomers. The Bill had the backing of 150MPs and yet without the Government’s supportit could not progress. Despite not becoming alaw, the Bill achieved the one thing that wehad hoped it would do all along by convincingthe remaining suppliers to drop theirpremium.

We called victory on the campaign in April2010 when British Gas, EDF, Scottish andSouthern Energy and the other three supplierspermanently removed their premiums for gasand electricity.

Ofgem’s latest report on energy prices statesthat prepayment meter customers now pay£19 a year less than customers who payquarterly for their energy and £69 less thandirect debit customers.

A formal evaluation of our campaign byFiretail1 said ‘the Federation’s actions duringthe campaign were a significant factor in theultimate decisions of the energy suppliers toequalise their prepayment and standard creditenergy tariffs. In particular … NHF’s politicaland media work caused the suppliers toreconsider the value of retaining premiums ontheir prepayment tariffs.‘

Clearly this is a huge success for the housingassociation sector and something that we canall be very proud of. On top of saving ourtenants money it has also put the Federationand housing associations on the map aschampions for social justice and fairness.

1 Firetail 2010, Evaluation of the prepayment campaign.

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OFGEM’S NEW PACKAGE In 2008, Ofgem, the energy market regulator, finallyacknowledged that the energy market was not workingfor some customers. In response, it introduced apackage of new rules which aim to improve domesticcustomers’ experience of the energy market.

Standards of conduct

Ofgem has introduced new standards of conduct whichprovide a guide to customers about the level of servicethey can expect from an energy supplier. The standardsare:

• suppliers must not sell a customer a product orservice that they do not fully understand or that isinappropriate for their needs and circumstances;

• suppliers must not change anything material about aproduct or service without clearly explaining why;

• suppliers must not prevent a customer fromswitching product or supplier without good reason;

• suppliers must not offer products that areunnecessarily complex or confusing;

• suppliers must make it easy for their customers tocontact them and act promptly and courteously toput things right when they make errors.

Better information on bills

Where a customer receives regular bills, each bill willdisplay the following information:

• The name of the customer’s current tariff.

• The customer’s consumption for the past 12 months,except where the customer has been with thesupplier for less than 12 months; and

• An estimated cost in pounds per year of thecustomer’s supply for the next 12 months if thecustomer remains on the same tariff, if the tariffrate is unchanged, and if the customer uses thesame amount of energy, except where the customerhas been with the supplier for less than 12 months.

Where the customer does not receive regular bills, forexample prepayment customers, this information mustbe provided at least once a year in an annualstatement.

Section 2:

New help forcustomers

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Annual statements

All customers will receive a clear and easy-to-understand annual statement that will includethe information detailed above as well as:

• A reminder of the principal conditions oftheir contract.

• Information about any premiums ordiscounts that may apply to the customer’stariff as compared to the supplier’sstandard tariff where payment is by directdebit.

• A reminder that the customer can switch,along with advice on how to do so.

Switching for customers in debt

Being in debt to a supplier can stop acustomer from switching supplier andaccessing a cheaper tariff. Ofgem hasintroduced new rules for some customers indebt to allow them to switch supplier:

• Prepayment customers who are in debt cannow switch supplier if their debt is less than£200.

• Customers in debt who have been notifiedof a price increase after it has come intoeffect or have been given less than five daysnotice of a price increase and wish tochange supplier are now better able to doso. If the customer informs the supplierthat they wish to switch, and the supplierblocks the switch due to debt, they will nowhave 30 working days to pay off this debt.Following payment, the customer will thenbe able to switch and avoid anyretrospective price increase.

• Customers in debt because of an errorcaused by their supplier should not beprevented from switching on the grounds ofthat debt.

Sales and marketing

Switching supplier on the recommendation ofa doorstep salesperson can be confusing andsome customers find that they have switchedto a more expensive tariff without realising.Ofgem has brought in new rules that shouldmake it easier for customers to get the tariffthey want.

Before signing up a new customer, thesalesperson should provide them with anestimate of the total annual charges for thenext year under the new terms they areoffering. This should either be in writing or onan electronic display. If the salesperson claimsto be offering a cheaper deal than thecustomer currently receives or if the customeruses a prepayment meter, they must alsoprovide that customer with a writtencomparison of their current energy costs andthose expected under the new offer.

Customers should receive a written copy ofthese estimates and comparisons as well as acopy of the new terms at the time of or shortlyafter signing up to a new supplier. It isadvisable that this information is kept forfuture reference by the customers.

If a customer decides to switch, they shouldreceive additional information including detailsof what happens next, a reminder to check theproduct is suitable for them, details of whereto find impartial advice, a reminder of anyright to cancel the agreement and details ofthird party organisations, such as ConsumerDirect, that can help address grievances,should they occur.

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The Government has mandated that every homein the UK will have a smart meter for gas andelectricity. Smart meters will give consumersthe information they need to make intelligentchoices about their energy consumption.

At the moment, the only information mostconsumers receive about their energyconsumption is via a bill that can arrive monthsafter they have actually consumed the energy.Even then, this bill can be based on informationthat is estimated. With smart meters,consumers will get a bill based on actualusage.

In addition, all smart meters will come with aseparate inhome display (IHD). This will provideconsumers with near real-time information toallow them to monitor their household’s energyconsumption. Consumers will choose wheretheir IHD is located to allow them easy accessto the information. The information will bedisplayed in pounds and pence as well as in avisual form that will be easier for consumers tounderstand.

By showing how much energy is being used andhow much it’s costing, smart meters can helphouseholds cut down energy consumption andmake savings.

Benefits for consumers

Smart meters have the potential to deliver thefollowing benefits to consumers:

• better information can help consumers cutenergy use

• smart meters end the need for estimatedbills and the need to be in when the meterreader calls

• consumers will benefit from more choice intariffs, for example time of use tariffs offeringcheaper electricity during the night whendemand for energy is lower

• in due course switching will become quickerand easier – taking days rather than weeks –increasing the competition

Section 3:

Smart metersfor all

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• there will be greater pressure on energysuppliers to make it easier to switchbetween payment methods, for exampleswitching between credit and prepaymentmodes using the same meter

• smart meters will give much clearerinformation, allowing consumers tocompare competing tariffs more easily

• smart meters could detect problems with aconsumer’s electricity supply

• smart meters will make it easier forsuppliers and third parties to offerconsumers tailored energy efficiency advice.

Other uses for smart meters

Smart meters will also allow householders totake advantage of other potential benefits. Asall smart meters should be able to ‘talk‘ toother appliances within the home, like theIHD, there is potential for the followingbenefits:

• consumers will be able to buy their ownsmart appliances which will be able to ‘talk‘to their smart meter, eg automatedhousehold appliances will be able to link tosmart meters to run more economically, forexample at night when off-peak electricity ischeaper

• greater automation of household appliancesthrough smart meters will increaseconsumers’ control over the energy theyuse in their home

• consumers could monitor their energyusage over the internet, making informationaccessible via computers and smartphones.

Costs

Suppliers will not be able to chargeconsumers upfront fees for smart meters.Where they pass on costs, those costs will betreated like other elements of supply, eg meter reading and environmental levies,and will be included in bills.

The Department of Energy and ClimateChange (DECC)’s overall cost/benefit analysisestimates that the cost of delivering smartmeters, estimated at £10.05 billion, will deliverbenefits of £15.04 billion.

It is estimated that by 2020 an averageconsumer will be saving around £14 a year ontheir gas and electricity bills, as they reducetheir energy usage in response to the betterinformation provided by smart meters. Someconsumers may save considerably more.

Next steps

DECC and Ofgem will now undergo a detailedconsultation exercise with stakeholders.Priority next steps include the introduction ofadditional consumer protections in spring2011 and developing technical specificationsfor the smart metering system. This is so thatthe mandated rollout of smart meters canbegin from mid-2012. This target is subject toconsultation.

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Introduction

People who pay for their gas and electricity usinga prepayment meter (PPM) are stuck in a segmentof Great Britain’s energy market which is devoid ofeffective competition. Hence they frequently sufferfrom the market’s highest prices and poor service.

Despite our campaign success, prepaymentcustomers still pay more to heat their homes thancustomers who pay by direct debit.

The key points of the prepayment market are:

• Prepayment meter users have limitedawareness of the competitive market and ofprice variations between suppliers and paymentmethods.

• Only around half of prepayment users have everchanged supplier, leaving those who have notswitched, in general, buying their gas andelectricity from the most expensive companies.

• Ofgem has identified that over half of theprepayment users who do switch supplieractually switch to the three most expensivesuppliers.

• Prepayment meter users rely heavily on door-to-door sales agents for their information onenergy prices, leaving them considerablyexposed to mis-selling.

Section 4:

Prepayment metersand other paymentmethods

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This means that most prepayment users wouldclearly benefit from further information on themarket and assistance in using the market totheir advantage. Consumers in social housinghave a very high tendency to use prepaymentmeters, meaning housing associations are wellplaced to provide assistance to the people whoneed it most.

People who pay their bill quarterly by cash orcheque (a method referred to as standard credit)rely heavily on door-to-door sales agents and soface a similar risk as prepayment users.Standard credit is also becoming an increasinglyexpensive way to pay, which means that thesecustomers need advice on how the market canwork to their advantage.

Nearly six million prepayment meters are in usein Great Britain, predominantly in low-incomehouseholds. This means that a high proportion ofprepayment users are people living on a budgetwho need to limit their energy expenditure, yetare left paying the highest prices on the market.

Prepayment use is high amongst housingassociation tenants, and some researchsuggests that housing association tenants arethree times more likely to use a prepaymentmeter than the average householder.2

Even conservative estimates indicate that thenumber of fuel-poor households that also useprepayment meters is now approaching the onemillion mark.

Types of gas and electricity meter

There are two types of meter in use: theprepayment and the credit meter.

• A credit meter is the most common type. Itsimply records the energy used. The meterwill be read by a representative of the energycompany and the consumer will receive a bill,or have their direct debit payment varied,based on the meter reading. People who havea credit meter can usually sign up for any‘tariff’ (price plan) from any energy company(page 18-19).

• People who use a prepayment meter need topay for their energy in advance using someform of card or key which they top up in ashop or post office. These meters restrictusers to prepayment tariffs which are oftenthe most expensive. Prepayment meters willonly supply energy up to the amount that hasbeen paid in advance, leaving usersdisconnected if the credit runs out.

Consumers on Economy 7, Economy 103 andsimilar tariffs can also use a prepayment meter.

Some electricity prepayment meters use an oldtechnology that t akes disposable paper tokens.Those who use a token prepayment meter maynot be able to switch to a different supplierunless they have a more modern meter fitted asa replacement. Companies must do this for freeand any consumer who has a token prepaymentmeter is advised to get it changed as quickly aspossible.

2 Energywatch 20083 See page 16 for more information on Economy tariffs.

SECTION 4

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Change the way to pay and look forspecial tariffs and reward schemes

Consumers can save money by changing the waythey pay for gas and electricity. Direct debit isusually the cheapest. Direct debit is evencheaper if consumers can manage their accountonline.

Many suppliers have special tariffs and rewardschemes. Examples include:

• Reward and cash back schemes. Somesuppliers offer an incentive to change to them(eg cash back) or for staying with them (eg airmiles).

• Tariffs for older people.

• Internet tariffs.

• Green tariffs. Some suppliers have tariffs thatcan help the environment.

• Prompt Pay. Some suppliers offer discounts ifthe bill is paid within a specified period.

To find out more about these schemes contactthe supplier directly or check the additionalinformation sections on one of the comparisonwebsites (see page 15).

How companies charge for gas andelectricity

There are essentially four main ways to pay forgas and electricity:

1 Direct debit and managing your account online.

2 Standard direct debit, paying by direct debitbut still getting paper bills. This usuallyinvolves paying a set amount each month.

3 Standard credit, paying by cash or chequeevery quarter when the bill arrives. Someconsumers have a payment card and they paya set weekly or monthly amount, usually incash at the post office.

4 Prepayment meter, paying in advance to topup a card or key which is then used to chargethe meter. This requires a different type ofmeter to be installed in the property.

There are other ways to pay, such as Fuel Directwhich is a safety net against disconnection for

recipients of qualifying benefits as Departmentfor Work and Pensions (DWP) pay energy billsdirect from a consumer’s benefits. Major energysuppliers have an obligation to accept paymentby Fuel Direct, provided DWP approves theapplication. Using Fuel Direct is often a good wayto repay a debt and avoid having a prepaymentmeter imposed.

Some consumers pay by weekly card or use a billpayment company such as One Bill.

Ebico

Ebico is a not-for-profit energy supplier thatcurrently charges the same rate no matter howits customers pay. More information on theirtariffs: Equipower, Equigas and Equidual, can befound on the website www.ebico.co.uk.

See advice on the impact of price rises in SectionNine: Learning from the Castle Vale Project.

Dual fuel deals

Dual fuel deals are where suppliers offer adiscount to customers who buy both gas andelectricity from them. In some cases thisdiscount can be £60 a year.

Consumers should look at the cheapest deals forgas and electricity as a single fuel as well as thecheapest dual fuel deal.

Fixed and capped price deals

Fixed and capped price deals are not usuallyavailable to prepayment meter users. However,they might be useful for consumers who canswitch payment method.

A capped price tariff offers the guarantee thatthe price per kilowatt hour (kWh) for electricity orgas will not rise beyond the ‘cap‘ for a set periodof time. The price paid for electricity or gas couldfall if a company’s standard prices decreaseduring the period. The bill amount will still varydepending on how much energy is used eachmonth.

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A fixed price tariff offers the guarantee that theprice per kWh for electricity or gas will not risefor a set period of time. However, the tariff pricewill not fall during the fixed period if thecompany’s standard prices fall. The bill amountwill still vary depending on how much energy isused each month.

Once the capped or fixed price offer expires,consumers will usually be moved on to thesupplier’s standard price tariff, which might notbe the cheapest tariff that supplier offers.

Capped or fixed price tariffs are usually moreexpensive (in price per kWh) than a company’scurrent standard tariff. The price premium at thestart of the fixed or capped price offer might costmore than the savings made towards the end ofthe offer.

Consumers might be subject to a termination feefor switching away from these sorts of offersbefore the end of the fixed period.

These types of offers may be suitable forconsumers who:

• Are on a fixed income and want to be able tobudget how much they will pay for theirenergy usage over the year.

• Think that energy prices are likely to risefurther in the future.

Please note that many of these deals are notavailable to prepayment meter customers.

SECTION 4

Accredited website Contact email Contact telephone

www.energylinx.com customerservices@energylinx.co.uk 0845 225 2840

www.energyhelpline.com energyhelpline@firsthelpline.com 0800 074 0745

www.homeadvisoryservice.com contact@homeadvisoryservice.com 0845 180 0300

www.moneyexpert.com general@moneyexpert.com 0800 542 7217

www.moneysupermarket.com customerservices@moneysupermarket.com 0845 345 5708

www.saveonyourbills.co.uk customerservice@saveonyourbills.co.uk 0845 123 5278

www.simplyswitch.com customerservice@simplyswitch.com 0800 011 1366

www.switchwithwhich.com swwqueries@which.co.uk 0800 533 031

www.theenergyshop.com help@TheEnergyShop.com 0845 330 7247

www.ukpower.com Info@ukpower.co.uk 0845 009 1780

www.uSwitch.com CustomerServices@uswitch.com 0800 404 7908

www.unravelit.com energy@unravelit.com 0800 279 4091

www.confused.com gareth@confused.com 0292 043 5501

How to find out about the best pricesin your area

With energy companies now offering abewildering range of different deals, it's easyto become confused about what's on offer. Theeasiest way to find the best deal is to use oneof the internet price comparison serviceswhich are accredited to the energywatch“Confidence Code” – a voluntary code ofpractice for price comparison services.Compliance with the “Confidence Code” isregularly audited, which means that the pricesquoted on accredited websites can be trusted.

The following companies have beenaccredited, as they have been able todemonstrate compliance with all ninerequirements of the Confidence Code. Theseaccredited sites now display the ConfidenceCode logo on their site.

The best results will be obtained if actualconsumption figures, in kWh, are used whenundertaking a price comparison. These can befound on a bill or statement. Try to avoid usingjust winter consumption or summerconsumption to estimate for a whole year.

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Comparing Economy 7 and Economy 10

Economy 7 and Economy 10 are electricity tariffswhich offer cheap electricity at night and moreexpensive electricity during the day.

Economy 10 also offers a short period of cheapdaytime electricity. Generally these tariffs areused by people who have storage heaters fitted.

When comparing Economy 7 and Economy 10tariffs it is very important to use actualconsumption data. Because each suppliercharges very different rates for night and dayuse, how much is used at night and how much isused during the day makes a very importantdifference to which company will be cheapest.Try to avoid using the industry estimate of 55%night time use as it can give a very misleadingresult.

Most comparison websites ask for totalelectricity use per year in kWh and a night timepercentage. To find out the night time percentageuse bills or statements to work out how muchelectricity in kWh has been used for day andnight use and add them together to find the totalconsumption in kWh. The night time percentageis calculated by dividing the night timeconsumption in kWh by the total consumption inkWh and then multiplying by 100.

It is vitally important that consumers understandhow to use these tariffs and transfer as much oftheir electricity use to the cheap periods aspossible. This may require the use of timers oncertain devices and making sure that consumersunderstand how to use the timers. Economy 7and Economy 10 consumers who use a lot ofelectricity during the day will find that they getvery large bills.

Limitations on switching

There are certain circumstances whereconsumers cannot switch to a new gas andelectricity supplier.

Consumer debt

Consumers who use a standard credit metercannot switch their gas and electricity supplier ifthey have an outstanding balance on theiraccount. This is normally overcome by the oldsupplier sending out a final bill and theconsumer paying the balance. However, forpeople with large debts the energy supplier mayobject to the transfer, resulting in the switchfailing.

In theory, prepayment meter users can stillswitch supplier if they owe less than £200 byusing the Debt Assignment Protocol. This is anindustry-agreed process that allows debts belowthis level to transfer with the customer to thenew supplier. The consumer will then continue topay off the debt in the same way as before. Whena prepayment meter user with a debt applies tochange supplier the existing supplier will objectto the transfer and it will be put on hold whilstthe consumer is asked to give consent for thenew supplier to have access to their currentsupplier’s account records. Failure to agreethrough signing and returning the permissionletter means the switch will fail.

This system is very rarely used and usually failswhen consumers do not agree to the transfer ofdata, meaning the consumer stays with theirexisting supplier. Potentially, the DebtAssignment Protocol is a very useful way forconsumers with less than £200 debt to reducetheir weekly costs and so pay off their debtsooner. Advisers should explain the processbefore initiating the switch so that consumers doagree to the transfer of data records. Ofgemshould be advised of any failed switches due tosuppliers refusing to use the Debt AssignmentProtocol. Ofgem can be contacted through itswebsite, www.ofgem.gov.uk.

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Dynamic teleswitching (DTS)

Some consumers have meters installed in theirhome which limit the price plans they can signup to because there are a limited number ofsuppliers who offer suitable tariffs. Examples ofthis type of meter are Dynamic Teleswitchedmeters or three-rate meters, which are usuallyfound in Scotland. DTS users might find thatswitching websites do not show their tariffpackage or that there are no competitive tariffsavailable from other suppliers. It may not bepractical to change the metering and homeheating systems to a ‘normal‘ tariff. In general itis not possible to find out whether consumers onthese tariffs are getting a good deal or not.

Green tariffs

Although not all prepayment meter users cansign up to green tariffs it may be that consumerswho switch supplier want to sign up to one.

Few consumers have signed up to green tariffs,and consumer confusion may be one reason forthis lack of take-up. Unless consumers startproducing their own energy using solar panels,wind turbines or the like, it is difficult to see howthey can go green. Consumers still need to gettheir energy from a supplier and that will need tocome via their existing pipes and wires.

Gas can’t be green because it comes from fossilfuel, and any electricity produced from arenewable source is not guaranteed to get intoyour home as it goes into the mix of electricityfrom nuclear and fossil fuels.

How tenants can benefit from cheaperenergy without switching

Switching supplier and payment method may notbe suitable for all tenants and some tenants mayswitch back to more expensive suppliers due todoor-to-door sales activity. Some housingassociations have sought to overcome this byforming a company to buy gas and electricitywholesale and sell it on to their tenants.

Aggregation deals such as EnergyExtra(www.energyextra.co.uk) offer an opportunity forhousing associations to help their tenants accesscheap gas and electricity without having tocontinually change supplier.

Tips for prepaying customers

Energywatch published a reference manual andan internet-based tool to help people understandhow to resolve the different problems thatcommonly affect gas and electricity consumers.These tools, as well as leaflets and reports fromEnergywatch, are hosted on the website ofConsumer Focus (the body which replacedEnergywatch and other consumer watchdogs)and can be accessed atwww.consumerfocus.org.uk.

Tips and useful information forprepayment customers

• PPM users going on holiday should make surethey charge their cards with plenty of moneyto ensure the supply is not interrupted overthe holidays.

• PPM users should contact their supplierimmediately if the meter develops a fault.

• Emergency credit is the amount of credit pre-programmed into the meter to ensure thesupply remains on for a short period untilmore credit is added.

• A ‘wind on‘ is the amount of credit anengineer can add to the meter if they need tocome to fix a meter fault. Please note –emergency credit or a ‘wind on‘ may need tobe repaid.

• If a prepayment card or key is lost, stolen orfaulty, some suppliers offer a service whereconsumers can collect a replacement fromthe local PayPoint/ Payzone or Post Office.This will restore supply without the need tocall out an engineer.

SECTION 4

Section 5:

How to save moneyby changing paymentmethod or supplier

There are three ways to switch and save money:

• Change to a cheaper way to pay for gas andelectricity.

• Change to a different gas and electricitysupplier or a better tariff/ price plan.

• If eligible, change to a social tariff.

Change to a cheaper payment method

Changing the payment method is the mosteffective way to save money. The pricedifferences between payment methods varybetween companies and can be very largeindeed. The cheapest way to buy gas andelectricity is to pay by monthly direct debit withan account managed online. Changing to thispayment method will, at current prices, saveabout £100 a year.

Energy tariffs (sometimes called price plans or payment methods)

In general there are seven different types ofenergy price plan:

1 Prepayment meter.

2 Paying by cash/ cheque when the bill comes.

3 Paying by direct debit.

4 Signing up to an online tariff, managing theaccount online and paying by direct debit.

5 Fixed price or capped price tariffs for a setperiod of time. This usually requires theability to manage the account online and topay by monthly direct debit.

6 Fuel Direct.4

7 Budgeting payment schemes(weekly/fortnightly or other flexible paymentschemes). The table in Figure 1 shows thelatest information on how people pay for gasand electricity.

4 Fuel Direct is a payment method for those consumers on incomesupport where the government puts aside some of their benefitsto pay for energy bills.

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People who can manage their account onlineand pay by direct debit will access thecheapest tariffs currently available in themarket. There are special offers available toonline customers and the best way to work outthe cheapest deal is to use a comparisonwebsite. See ‘How to find out about the bestprices in your area‘ in Section 4.

Some suppliers will allow other paymentmethods for their online accounts, but thesedo not attract the same low prices as payingby direct debit.

Managing an account online isstraightforward. All it means is thatconsumers will get bills sent to them by emailor through a secure website (much likeinternet banking), and they will be asked toenter meter readings online. Consumers willneed to access the internet only a few times ayear to manage their account effectively.

Paying by ‘offline‘, conventional direct debit isthe next cheapest option, which still offerssavings over paying by cash/ cheque.

On average, paying by cash or cheque costs abit more than prepayment meter. Around athird of consumers still pay this way.

Some consumers have concerns about usingdirect debits, often caused by theunpredictability of the payments and the fearthat a larger than expected direct debitpayment could cause a bank account tobecome overdrawn.

An average consumer able to sign up to aninternet tariff, manage their account onlineand pay by direct debit should be able to savearound £69 a year compared with using aprepayment meter.

Changing from a prepayment meter topayment by any other method will require achange of meter. There is more information onmeter types on Page 13. Consumers must becertain that they can budget effectively withouta prepayment meter as the costs of going intodebt and having a prepayment meterreinstalled can be considerable.

Gas 50% 15% 28% 0% 3% 4%

Elec 47% 17% 30% 0% 2% 4%

Monthly direct debit (online or offline)

Prepaymentmeter

Quarterly cashcheque

Fuel direct

Budgetingpaymentschemes

Other

Figure 1 Payment methods for gas and electricity, January 2010

Source: Ofgem report Monitoring Company Performance Q3 20095

5 http://www.ofgem.gov.uk/Sustainability/SocAction/Monitoring/SoObMonitor/Pages/SocObMonitor.aspx

SECTION 5

PAGE 20

Changing from a prepayment meterto a credit meter

While prepayment meters are the preferredpayment method for some people, if they areable to budget without the use of the meter andthey have no debt or recent history of debt, itshould be relatively easy for them to exchangetheir PPM for a credit meter. Most energycompanies reserve the right to charge to installa credit meter, but usually they will do it for free.Some companies insist that people switch todirect debit when they change a prepaymentmeter. Companies may undertake a credit checkand as a result ask some people for a securitydeposit.

Some consumers have encountered difficultieswhen trying to exchange a prepayment meter fora credit meter. This is usually because thecompany will initially refuse to complete theexchange or will deny that it is possible toexchange a prepayment meter for a creditmeter. It is not clear why people sometimesencounter these problems. All the energycompanies have confirmed to Energywatch thatthey will exchange any prepayment meter for acredit meter using the following policies:

British Gas Npower E.ON

Won’t exchange prepaymentmeter if it still has a debt.

No charge for people who inherita prepayment meter throughmoving into a home which alreadyhas one installed provided theypass a credit check.

No charge for changingprepayment meter if customerhas no debt, and meets certaincredit checks or has a 12-monthpayment history with supplier.

Consumers will be charged £60for gas and £60 for electricityexchange.

Won’t exchange prepaymentmeter if it still has a debt. Nocharge for people who inherit aprepayment meter throughmoving into a home whichalready has one installedprovided they pass a creditcheck.

E.ON charges £50 per meter.They will charge the full cost ifthey have to reinstall aprepayment meter.

Scottish Power EDF Energy, Scottish Hydro, Southern Electric SWALEC

No charge if consumer has no debt, but ScottishPower may charge a security deposit for people witha poor payment history.

Consumers will be charged £61.59 for gas and£44.95 for electricity exchange.

Each of the above suppliers charges £52 per meterto have it removed.

PAGE 21

Change to a different gas and electricity supplier

Changing supplier should be a simple processwhich can be set in motion over the phone in oneshort phone call and the whole process shouldtake about six weeks to complete. It should be nomore difficult than changing mobile phoneprovider. The new supplier will organise everythingand once the consumer has agreed to switch, theonly thing they need to do for the process tocomplete is take a meter reading on the transferday. Most companies will confirm the new deal byletter, which the consumer might be required tosign and return.

The new supplier should keep the consumerinformed about how the transfer is progressingand tell them the date on which they will changeenergy company. Once the most suitable deal hasbeen identified, changing supplier follows thesteps below.

Step 1:

Consumers should get in touch with thenew supplier(s) and agree to buy their gasand/ or electricity from them. It will help ifthe consumer has their electricity and gasmeter readings as well as a recentstatement or bill to hand when they call.

Step 2:

To make the process go more smoothly,consumers are advised to inform their oldsupplier(s) of their intention to leave. (Thenew supplier will automatically inform theold supplier of the impending transfer.)Consumers should initially do this bytelephone and then follow up with writtenconfirmation.

Step 3:

In theory prepayment meter users canstill switch supplier even if they have anenergy debt of up to £200. Any debttransfers to the new energy supplier andis paid back in the same way as before. Itwon’t cost anything to transfer a debt, butthe new electricity or gas company willneed some information about the debtbefore the transfer can take place. Thisprocess is available to consumers but hashardly ever been used successfully.

Step 4:

The consumer should take a meterreading on the day they change supplier(the date advised to them by their newsupplier). The payment meter usersMUST NOT continue using their old key orcard after the transfer date as thepayments will go to their old, rather thantheir new, supplier. It can be acomplicated and drawn out process to getthese ‘misdirected payments‘ transferredfrom the old supplier to the new supplier,potentially leaving the consumer in debtand without the gas or electricity that theyhave paid for.

SECTION 5

Section 6:

Help for yourtenants -‘social tariffs‘and assistanceschemes

All of the ‘Big Six’ energy suppliers offer reducedprice tariffs to people who are fuel poor. Eligibilityis usually related to the receipt of an income-related benefit or being over a certain age. Somesuppliers also offer ‘trust funds‘ which awardgrants to help people clear their debts. Somesuppliers also offer ‘one off‘ rebates.

Home Heat Helpline

The Home Heat helpline is a free, central phonenumber offering practical advice for peopleconcerned about paying their energy bills. Thehelpline is staffed by specially trained advisorswho can advise tenants on what social tariffs,special grants and services are available to makesure they don’t suffer over the winter.

It is open from 9am to 8pm Monday to Friday and10am to 2pm on Saturdays. You can access thehelpline by calling 0800 33 66 99 or on minicom0800 027 2122 and the helpline has access to aninterpreting service.

Current social assistance fromthe main suppliers

British Gas – Essentials Combined

To be eligible for Essentials Combined you musthave an income of less than £15,000 per year andmust be:

• in receipt of Disability Allowance or AssistanceAllowance

• or be over 70 on pensions credit

• or suffer from a terminal illness

The tariff is on average 16% cheaper than thestandard tariffs and could save dual fuelconsumers an average of £122 per year. The tariffincludes:

• customised customer services

• dedicated helpline

• extra care flag

PAGE 23

SECTION 6

• quality of life assessment

• charity partner referrals

• ESR assessment

• free insulation and CERT products

• account assessment

• benefits health check

• referral to Money Advice Trust/BGET

To apply telephone 0800 072 5230.

British Gas – Energy Trust

This is an independently run charitable trustwhich British Gas has set up which can helpconsumers reduce or clear their energy debts.

It may also be able to assist with other essentialhousehold bills or costs.

To apply you must be an existing customer ofBritish Gas.

To apply telephone 01733 421 060.

EDF Energy – Energy Assist

To be eligible for Energy Assist you must be acustomer of EDF Energy and spend more than10% of your total net annual household incomeon annual household energy costs, or be inreceipt of Income Support and/or receivePension Credit benefits. Eligible consumersregardless of payment method are charged onthe same tariff as direct debit customers, plusthere is an annual discount of £75 for dual fuelcustomers (or £37.50 for single fuel customers).The tariff includes free:

• energy efficiency advice

• or heavily discounted energy efficiencymeasures (eg insulation, draught proofing,light bulbs, etc.)

• benefits entitlement check

To apply telephone 0800 269 450.

EDF Energy – Energy Trust

This is an independently run charitable trustwhich EDF Energy has set up which can helpconsumers reduce or clear their energy debts. Itmay also be able to assist with other essentialhousehold bills or costs.

To apply you must be an existing customer ofEDF Energy.

To apply telephone 01733 421 060.

E.ON Energy – WarmAssist

To be eligible for Warm Assist you must beaged 60 or above and in receipt of PensionCredit, Disability Living Allowance orAttendance Allowance, or have a high energyconsumption arising out of a medical condition(at E.ON Energy’s discretion).

The tariff includes:

• up to 15 per cent discount on standardelectricity and gas prices

• energy efficiency audit

• energy efficiency measures including freeinstalled cavity wall and loft insulation up to£370

• benefits entitlement check

• access to E.ON’s Caring energy Fundproviding grants to install heating systemsand the purchase of essential appliances

• energy saving pack

• easy referral to other support agencies andregistration with E.ON’s Priority ServiceRegister

To apply telephone 0800 404 6287.

PAGE 24

npower – Spreading Warmth Tariff

To be eligible for Spreading Warmth you musthave a gross annual household income below£13,500 and someone in the household who is:60 or over, disabled, chronically sick, or a childunder 16.

Spreading Warmth is npower’s social tariff andis their cheapest tariff regardless of paymentmethod. The tariff currently offers averageannual savings compared to their standardprices of over 20 per cent for the dual fuelcash/cheque and prepayment customer.

To apply telephone 0808 172 6999.

npower – First Step Scheme

The First Step Scheme offers advice and helpif you’re struggling to pay your npower bills.The scheme offers:

• advice about paying npower bills

• First Step advisors will work withconsumers on a one-on-one basis to helpthem manage their energy bills

• the advisors will set up a payment plan thatsuits the consumer’s circumstances, andprovide advice on how to save energy andmoney around the home.

Some consumers may be eligible for help fromthe First Step Fund, which could clear all orpart of the debt owed. If eligible, the debt willbe placed on hold for an agreed period of time,as long as the consumer commits to apayment plan and doesn’t default onpayments. After an agreed period of time (noless than six months) the First Step fund maywrite off all, or some, of a consumer’s debt. Ifthe consumer is in quite a lot of debt the fundmay clear it in several instalments – as longas regular payments are maintained.

To apply telephone 0808 172 6999.

Scottish Power – Fresh Start

To be eligible for Fresh Start you must be 60or over and in receipt of qualifying benefits.The tariff offers consumers access to theircurrent best tariff price which is equivalent todiscount online direct debit rates.

The tariff includes:

• benefits check to ensure consumers areclaiming all the benefits they are eligible for

• energy efficiency advice

To apply telephone 0845 2700 700.

Scottish and Southern Energy (alsoknown as Southern Electric, ScottishHydro or SWALEC) – Energyplus Care

To be eligible for Energyplus Care you must bean existing customer of Scottish and SouthernEnergy and spend 15 per cent of your totalhousehold income on your energy bills.Assessment of eligibility will include a reviewof the type of property and its energy efficiencystatus, income or benefits received anddisability or chronic illness.

Energyplus Care gives you up to 20 per centdiscount on current fuel prices, regardless ofwhich payment method you use.

The tariff includes free:

• energy efficiency advice to help save evenmore money on future bills

• energy efficiency measures, from lowenergy light bulbs to a free fridge or adiscounted fridge/freezer

• benefit entitlement check

To apply telephone 0800 622 838.

Scottish and Southern Energy –Winter Care Rebate

The Winter Care Rebate scheme is offered tothose who are not eligible for the EnergyplusCare tariff. If you are identified as experiencingdifficulties with your fuel bills and arespending 10% or more of your income on fuelcosts, you will be eligible for a £50 rebate foreach account held by the supplier.

PAGE 25

Priority Service Register

The Priority Service Register (PSR) can assistsome vulnerable consumers in theirengagement with energy suppliers by providinga suite of free services that improve safety,security and communication. These registersalso help inform suppliers who their vulnerableconsumers are. Energy suppliers are obliged tooffer these services, although some suppliershave rebranded their registers.

Domestic consumers will qualify for theregister if one or more of the following appliesto them:

• Of pensionable age.

• Have a disability.

• Chronically sick.

• Are hearing and/or visually impaired.

The free services offered by the PriorityService Register are:

• Password protection scheme: This schemehelps reassure consumers that a caller isgenuine. Consumers agree a uniquepassword with their gas and electricitysupplier(s) that will be used whenever theirstaff visit their home.

• Meter reading: It is very important that billsare based on the energy used. If no one isable to read the gas or electricity meter, thegas and electricity supplier will arrange forthe meter to be read every quarter and billssent out based on these readings. Withoutaccurate readings, people can be faced withcatch-up bills running into thousands ofpounds.

• Accessing prepayment meters: If aprepayment meter cannot be accessedthen, providing that it is safe andpracticable, the gas or electricity suppliercan move the meter to a more accessiblelocation, free of charge.

• Special help if the gas supply is disrupted: Ifthe gas supply has been disrupted or turnedoff for safety reasons and if ALL adultsliving in the household are eligible for thePriority Service Register, the gas supplierwill provide alternative cooking and heatingfacilities.

• Advance notice if the electricity supply hasto be interrupted: Consumers who rely onelectricity to power vital medical equipmentcan get advance notice if the electricitysupply has to be interrupted for plannedwork.

• Bill nominee scheme: A copy of gas andelectricity bills can be sent to a friend,relative, or the address of a carer so theycan help the consumer read and check orpay the bill.

• Services for visually impaired or hearingimpaired consumers: The gas or electricitysupplier can provide consumer information,including meter reading and bills, in asuitable format, eg braille, large print, audiotape, textphone or typetalk.

Energywatch has produced a leaflet explainingthe Priority Services Register and the free helpit provides. The leaflet can be found on theConsumer Focus web interface atwww.consumerfocus.org.uk. It is stronglyrecommended that eligible tenants are urgedto register. Registration for the service isundertaken on request by the energy supplier.

Each energy company has a different name forthe Priority Service Register. These are givenbelow.

SECTION 6

British GasHome Energy Care Register; 0800 072 8625

EDF EnergyPriority Services Register; 0800 269 450 or www.edfenergy.com/products-services/for-your-home/documents/priority_services.pdf

E.ONPriority Services Register; 0800 096 3080or register online at: www.eon- uk.com/ ContactForms/ priorityservices.aspx

NpowerWarm Response Service which can be contacted via the Warm Response Line on 0808 172 6999

Scottish Power and Manweb Carefree Priority Services Register; 0845 270 0700

Scottish HydroSouthern Electric and SWALEC Careline; 0800 622 838

PAGE 26

External resources to helpyour tenants

The gas and electricity market in England,Wales and Scotland is regulated by Ofgem,www.ofgem.gov.uk. Ofgem has the powers toenforce legislation and regulation. Ofgem doesnot deal with individual consumer complaints.

Consumers and their representatives can seekhelp and advice from Consumer Direct, onwww.consumerdirect.gov.uk or by phone on0845 404 0506 (in Welsh: 0845 404 0505).Minicom users should use 0845 128 13 84.

The consumer representation body ConsumerFocus can investigate complaints from energyconsumers relating to a disconnection or athreat of disconnection, or complaints madeby or on behalf of vulnerable consumers. TheConsumer Focus website will bewww.Consumerfocus.org.uk.

The Energy Supply Ombudsman investigatescomplaints where consumers and the energycompany cannot agree on a resolution.However, there are strict criteria governingwhich complaints the Ombudsman will accept.More details about the Energy SupplyOmbudsman can be found on bills orstatements or onwww.energy-ombudsman.org.uk.

The Energy Efficiency Partnership for Homesruns free training courses for people wantingto set up and manage sustainable energy orfuel poverty projects and also publishes aninteresting newsletter. Membership of thepartnership is free and more information canbe found at www.eeph.org.uk/about/joining.

The Energy Saving Trust manages a networkof local energy advice centres now rebadgedas the Green Homes Service. Theseorganisations may be able to work inpartnership with housing associations tomanage energy advice clinics. They can becontacted through their national number 0800512 012. An Energy Saving Trust briefing noteon cross-departmental working is available at:www.energysavingtrust.org.uk/uploads/documents/housingbuildings/internal_partnership_bn_one_pager.pdf.

Housing associations can benefit from theEnergy Saving Trust’s Practical help service,which offers:

• A free enquiries service – they offer up totwo hours’ research for every enquiry onsustainable energy issues. Enquirers canphone or email the team on 0844 84 888 30or practicalhelp@est.org.uk.

• Free tailored presentations on a range ofsustainable energy topics.

• Up to three days’ consultancy on setting upan energy services scheme.

• A comprehensive website including news, afunding database and events listings.

The Energy Saving Trust also offers thefollowing resources:

• Energy efficiency: the guide: acomprehensive source of information forhousing management organisations acrossthe UK, with 16 chapters on subjects suchas energy strategies and energy advice fortenants: www.energysavingtrust.org.uk/housingbuildings/localauthorities/theguide

• The Tenant Empowerment Toolkit, whichwas developed in conjunction with theHousing Corporation and helps housingassociations advise tenants about reducingenergy usage by making changes to theirlifestyle and working with other people andorganisations. This publication can beordered from the Practical help team on thecontact details above.

• The opportunity to sign up for theirnewsletter and e-news, which will keephousing association staff up-to-date withthe latest news, legislation and resources.

Eaga manages a number of government- andindustry-backed schemes to improve theenergy efficiency of homes. While housingassociation tenants may not be eligible forassistance from the schemes managed byEaga, the organisation’s local projects can bea very useful way of attracting local residentsto advice clinics. It can be contacted throughthe website www.eaga.com/index.php.

National Energy Action is an independentcharity which campaigns on fuel poverty andenergy efficiency issues (see www.nea.org.uk).

PAGE 27

The charity has managed a number ofoutreach projects and may be able to assisthousing associations in the areas where theyoperate. NEA also runs training courses onenergy efficiency and fuel poverty, of whichdetails are available on the website. It has alsoproduced a toolkit for councils to use whendeveloping an affordable warmth programme.It contains some useful suggestions and canbe found atwww.nea.org.uk/assets/Publications/Publication-Files/beatingthecoldeng.pdf.

NEA has also published two guides forhousing associations:

• Working as an Energy Champion in yourHousing Association (May 2008), a guide for‘energy champions‘ and staff in housingassociations on the issues of fuel povertyand affordable warmth. Advises housingassociation staff on how to work with bothindividual householders and the widercommunity to ensure that every tenant isable to heat their home affordably. It can bedownloaded for free fromwww.nea.org.uk/assets/Publications/Publication-Files/NEAEnergyChampion.pdf.

• Keeping warm in your home. A HousingAssociation tenant’s guide (April 2008). Thisbooklet is designed especially for peoplewho rent from housing associations. Itprovides information that may help peoplereduce bills whilst still keeping warm. It canbe downloaded for free fromwww.nea.org.uk/assets/Publications/Publication-Files/HousingAssociationTenantsGuide.pdf.

Child Poverty Action Group (CPAG) publishesthe Fuel Rights Handbookwww.cpag.org.uk/publications/1_wr.htm#fuelThis book is well established as the standardpractical guide to the rights of gas andelectricity consumers. It is helpful for anyadviser helping clients cope with fuel bills,debt and related problems with fuel supply.

The Association of UK Energy Agencies(AUKEA) promotes and supports the activitiesof independent energy agencies that areengaged in either energy saving or fuel povertywork. A list of their members is available onthe association’s websitewww.natenergy.org.uk/aukea. Climate Energy

(www.climateenergy.co.uk) is another adviceagency but does not feature on this list.

A number of housing associations have workedwith local authorities on energy strategies,improving the housing stock and developingdatabases with energy efficiency information.

Some examples include:

• New Progress Housing Association workedclosely with South Ribble Council on aborough-wide energy strategy:www.energysavingtrust.org.uk/uploads/documents/housingbuildings/ha_energy_strategy_new _progress_cs.pdf.

• A number of housing associations aremembers of the Cornwall Sustainable EnergyPartnership, a partnership combining theexpertise and knowledge of organisationswithin the public, private, health andcommunity sectors with the aim of achievinga sustainable future for Cornwall:www.energysavingtrust.org.uk/uploads/documents/housingbuildings/cs_CSEP.pdf.

A number of gas, electricity and watercompanies have established trust funds to helppeople who are struggling to pay their bills. TheBritish Gas Energy Trust provides some usefulinformation including a booklet which describesthe assistance available for people struggling topay their bills and a list of other trust funds thatmay be able to help. This can be found at:www.britishgasenergytrust.org.uk/useful_links.

Charis manages a number of trust funds;further information is available on their websiteat www.charisgrants.com.

The Third Sector Declaration on ClimateChange is intended as a statement of intentfrom third sector organisations to tackle theissue of climate change by taking action in theirorganisations and communities:www.everyactioncounts.org.uk/declaration/index.htm.

SECTION 6

PAGE 28

How to complain and who tocomplain to

Consumers should first take any complaint totheir energy company. Consumer Direct cangive advice on how to do this. The newconsumer representation body Consumer Focuscan investigate complaints relating to adisconnection or a threat of disconnection orcomplaints made by or on behalf of vulnerableconsumers.

When consumers cannot come to an agreementwith their energy supply company they can taketheir complaint to the Energy SupplyOmbudsman (ESO), who will settle the case.

However, there are strict criteria governingwhich complaints the ombudsman will acceptand consumers should make sure theyunderstand these early in the complaintprocedure. More information on the ESO can befound at: www.energy-ombudsman.org.uk.

Making a complaint over the telephone

• Consumers should make sure they have acopy of all documents they may need, egrelevant letters, bills and notes from previouscalls, etc to hand.

• Consumers should make a note of what theywant to say before making the call.

• Consumers should stay calm and speakclearly about how they want the problemresolved.

• Consumers should make a note of the nameof the person they speak to, the telephonenumber called, the date and time of day andwhat was said.

• At the end of the conversation, consumersshould make sure the company explainswhat will happen next and when by, and notethis down.

Section 7:

How to make acomplaint

PAGE 29

Writing to your company

• The address to send the complaint to canbe found on a bill or statement or by askingthe energy company.

• The letter should include the consumer’sname, address and account number as wellas a telephone number.

• The letter should explain the problem fully,including key dates and times of incidentsas well as how the consumer wants itresolved.

• Consumers should keep photocopies ofevidence such as receipts, photos, lettersand bills that support the complaint.

• Consumers should always keep a copy ofletters they send to their energy supplier.

Energywatch has a letter ‘wizard’ to helpconstruct letters of complaint. It is nowavailable on the Consumer Focus website.

Tips on making a more effectivecomplaint

• Consumers should find out about thesupplier’s complaint handling procedure.The procedure can be found on thesupplier’s website or the supplier can beasked for a copy.

• Consumers should ensure that thecompany logs the complaint and that theykeep a note of the reference number.

• Consumers should keep track of thecomplaint and keep records of everycontact. Energy companies can loserecords, ‘forget‘ about the complaint oreven deny all knowledge of the complaint.

• If the consumer is not satisfied with the waythe complaint is being dealt with, theyshould ask for it to be escalated.Sometimes the supplier’s CustomerServices department will help resolve acomplaint more effectively than, say, theDebt Recovery department.

• If the complaint is unresolved after eightweeks, or if it is not possible to reach anagreement about the complaint, then thesupplier must issue a ‘deadlock letter‘. Thisletter will state the company’s final position.

• Once a ‘deadlock letter‘ has been received,the complaint can be sent to the EnergySupply Ombudsman asking them toinvestigate the issue.

More details about the Energy SupplyOmbudsman can be found on bills,statements or on the website

www.energy-ombudsman.org.uk.

Complaint handling standards

The gas and electricity regulator Ofgem hasset complaint handling and redress standardsthat are binding upon energy suppliers. Thesebecame live on 1 October 2008. The keyelements which Ofgem has included in thecomplaints handling standards regulationsare:

• A common definition of a complaint.

• A requirement to record complaints uponreceipt and subsequently.

• A requirement to have a complaintshandling procedure.

• A requirement to signpost the complaintshandling procedure.

• A requirement to signpost the redressscheme.

• A requirement to agree arrangements withConsumer Focus for handling vulnerableconsumers and threatened or actualdisconnections.

• A requirement to agree arrangements withConsumer Direct for referrals.

• A requirement to deal with consumercomplaints in an efficient and timelymanner.

• A requirement to publish information oncomplaints.

SECTION 7

Section 8:

Contact information

Alliance Gas Ltd - now Statoil UK 020 7766 7777

Atlantic Electric & Gas 0870 013 2140

British Gas Trading Ltd 0845 955 5300Central Networks Eastern Region 0800 096 3080

Central Networks Western Region 0845 735 3637

Countrywide Farmers Plc 0800 328 0011

CPL British Fuel 0800 138 3888

E.ON Energy 0800 479 2211

EBICo Ltd 0800 096 6344

Economy Gas Ltd 0161 904 0333

Ecotricity 0800 032 6100

EDF Distribution East of England 0845 601 4516

EDF Distribution London 08701 961 056

EDF Distribution South East 08701 963 090

EDF Energy 0800 096 2270

Good Energy Limited 0845 456 1640

Green Energy (UK) plc 0845 456 9550

Independent Power Networks 0871 225 0123

London Energy Plc 0800 096 9000

National Grid (formerly Transco)General Enquiries 0845 605 6677

NEDL 0845 070 7172

Northern Gas Networks 0191 501 4300

Npower 0800 073 3000

Pennine Natural Gas Ltd 01625 540 011

Scotland Gas Networks 0845 026 0015

Scottish Hydro-Electric 0845 300 2141

ScottishPower 08452 700 700

Seeboard Energy 0800 096 96 96

Severn Trent Energy 0800 0424242

Southern Electric Distribution 0845 7444 555

SP Energy Networks Manweb 0845 273 4444

SP Energy Networks Scotland 0845 273 4444

SWALEC 0800 052 5252

Telecom Plus 0208 9 555 000

United Utilities 0845 050 0108

Universal Energy 0800 652 3707

Utilita Services Limited 0845 450 4357

Western Power Distribution (South Wales) 0845 601 3341

Western Power Distribution (South West) 0845 601 2989

YEDL 0845 070 2703

PAGE 31

Contact numbers for prepayment meter customers

British GasPay as you go energy - 0800 048 0303www.house.co.uk/prepayment

EDF Energy0800 096 9000www.edfenergy.com/products-services/for-your-home/our-products/edf-energy-pay-as-you-go.shtml

npower08457 145 146

E.ON Energy0800 052 0347www.eonenergy.com/AtHome/Contact/?WT.svl=3

ScottishPower0845 27 27 999www.scottishpower.co.uk/Home_Energy/Payment_Methods/Payment_CardPrepayment/

Scottish and Southern EnergySouthern Electric & Atlantic: 0845 702 3054 Scottish Hydro: Electric 0845 300 2126 SWALEC: Electric 0845 300 2139

Emergency contact numbers forall consumers

GasGas Emergency Contact Number 0800 111 999

Electricity

Central Networks Eastern Region 0800 056 8090

Central Networks Western Region 0800 328 1111

EDF Distribution East of England 0800 783 8838

EDF Distribution London 0800 028 0247

EDF Distribution South East 0800 783 8866

Independent Power Networks 0800 013 0849

NEDL 0800 66 8877

Scottish & Southern Energy (South) 08457 70 80 90

Scottish Hydro-Electric 0800 300 999

SP Energy Networks Manweb 0845 272 7999

SP Energy Networks Scotland 0845 272 2424

United Utilities 0800 195 4141

Western Power Distribution(South Wales) 0800 052 0400

Western Power Distribution(South West) 0800 365 900

YEDL 0800 375 675

SECTION 8

Section 9:

Learning from theCastle Vale project

Energywatch (now Consumer Focus) and CastleVale Community Housing Association (CVCHA)ran a joint project between February and April2008 to encourage people using prepaymentmeters to change to the cheapest gas andelectricity supplier. The project aimed to assist250 households in moving to a better deal butactually only provided detailed support to 40households, and resulted in just 19 consumerschanging supplier.

It is estimated that on average consumers whoswitched supplier when advised by the projectsaved about £90 on their electricity accounts andabout £125 on their gas accounts per year (thesavings customers can now make have comedown because of the impact of our campaign).

Because the project only measured outcomes(consumers who switched supplier or receivedassistance from Energywatch), at first glance itappears to have had a very low success ratewhen compared to other projects. However, fromEnergywatch’s perspective the project was a realsuccess and taught us valuable lessons:

• It saved those consumers who did switchconsiderable sums of money for a relativelymodest outlay.

• It achieved very positive outcomes for someconsumers who otherwise would not haveknown how to get help with the problems theywere experiencing (eg preventing adisconnection for debt; instigating transfers tosuppliers’ social tariffs; moving eligiblecustomers to Fuel Direct whereverappropriate, and securing debt write-offs insome instances).

Any similar project should either put in place thecapability to help consumers directly with theiraccount problems, or establish a defined referralroute to specialist advisers for consumers inneed.

The next section explains what was attempted,what worked and what didn’t work, and what welearned from follow-up focus groups run byMORI. It also gives some ideas for improving theeffectiveness and reach of similar projects.

PAGE 33

Practical aspects of the project

Advice sessions and street outreach

The project ran 19 different advice sessions forCastle Vale residents. Three days of streetoutreach were also held using a mobile advicecentre at various locations around Castle Valewhere residents congregated such as schools,the high street, swimming pool, etc.

At the advice sessions, trained Energywatchadvisers gave one-to-one advice on whichsupplier would be the cheapest and eitherhelped the consumer to complete anapplication form to transfer to the identifiedsupplier, or helped them contact that supplierby telephone in a private area. Actually helpingconsumers to switch there and then, ratherthan just providing advice and leaving it up topeople to act, was considered to be importantin ensuring people did actually make theswitch.

Consumers were also offered advice to helpthem deal with any other problems with theirgas or electricity accounts. This actually provedto be the most popular aspect of the project, asover half the consumers who attended theadvice sessions came primarily to get advice tohelp resolve an ongoing problem. Manyconsumers who came for advice were unawarethat Energywatch existed and had struggled tosolve their account problems themselves.

The types of problems the project helpedresolve were mostly related to bad billing, mis-selling, debt or metering issues. Theseproblems should be relatively simple to resolve.

The MORI focus groups identified a lack ofawareness of the project, apathy aboutchanging supplier and lack of knowledge of theenergy market as the main reasons why theproject failed to engage the numbers ofconsumers which had been hoped for.

Each advice session attracted a number ofconsumers who were looking for informationbut unwilling to commit to transfer there andthen. Some returned for further advice anumber of times and then committed tochange, while others took the advice away,stating that they would then discuss it withtheir partners.

The most successful aspect of the outreachwas when residents gave personal referrals tothe project. One Castle Vale residents’association endorsed the project, meaningmany of the residents of that particular areasubsequently engaged with the project andswitched supplier.

Publicity material

Energywatch used a range of publicity material.Some 1300 postcards (addressed to namedindividuals) were delivered by Royal Mail, andover 500 leaflets were hand delivered or givenout in the street. Flyers advertising the projectwere also left at popular locations in the areaand posters were put up in all blocks of flatsand other venues such as the library,neighbourhood office and some local shops.CVCHA rent statement letters also includedinformation about the project.

The MORI focus groups identified that most ofthe publicity material had failed to engageresidents. Coloured flyers on card were seen asthe most effective medium, as these containedshort, punchy messages which people coulduse to make decisions. The flyer shown inFigure 2 was considered to be the mosteffective one. The focus group felt it wasstriking, clearly identified Energywatch asindependent and not one of the energycompanies, and explained which suppliers werethe cheapest, enabling people to make simplebut informed decisions.

The MORI focus groups identified a generalapathy towards leaflets or letters discussingenergy, and few residents read any of theadditional information which accompanied rentstatements. This was reflected in the fact thatonly five residents actually attended thesessions it advertised.

As an alternative, residents suggested localradio adverts, bus posters and posters on lampposts on the main routes through the area.Residents wanted to be told by a body theytrusted that they should switch supplier orpayment method; and they wanted to bereminded of this simple message repeatedly.The need for repeated advice was somethingthe project team noticed through the number ofpeople who returned for advice on severaloccasions. SE

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Figure 3 Energywatch flyer used in Castle Vale project: front

Figure 2 Energywatch flyer used in Castle Vale project: back

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Sessions held in housing associationoffices

The sessions in the CVCHA offices were held inthe entrance foyer, with access to privateconsulting rooms and the internet. There wereenough advisers to ensure that no one waitedfor more than a few moments for advice.

Using the internet to show consumers whichsupplier would be cheapest for them provedvery popular. Generally when consumers sawthe results on screen of a quote made througha switching website they were far more likely totrust the information that X company would bethe cheapest. This was often reinforced whenseveral quotes were obtained from differentwebsites. This was much more effective thanusing comparison sheets or printouts of pricesbased on standard consumption patterns. Onthis basis, it is vital that any project providingadvice on how to switch supplier has readyaccess to the internet. No use was made oftelephone comparison services.

Timing and location of advice sessions

None of the advice sessions proved morepopular than the others. The MORI focusgroups identified a desire for morning sessionsto be held in ‘neutral‘ or community venues asa few residents felt they didn’t want to come tothe housing association offices for advicesessions.

Strike whilst the iron is hot

The project generally saw two types ofcontacts: those people who had decided theytrusted the project and would act on the advicegiven; and those who were thinking aboutchanging energy supplier and would take awaythe advice for further consideration. The projectworked hard to create confidence in the lattergroup, so that they would actually make theswitch. The project made sure that peoplecould switch during the advice session, eitherby completing and signing a form which theproject would send to the relevant supplier orby using one of the project’s phones to call thesupplier and switch.

Helpline

The project made use of the nationalEnergywatch 08457 helpline, because it isstaffed outside normal hours and it proveddifficult to get a new number specifically for theproject within a reasonable timescale.

Text back service

Due to the cost of calling 08 numbers frommobile phones and the low incidence oflandlines amongst some socio-economicgroups, the project set up a service using anordinary mobile phone where interested peoplecould text in their phone number and theproject team would call them back. Despitewidespread publicity, this service was not usedby anyone.

Helping consumers find the bestdeal for them

The project advised consumers of the best dealfor them through the use of the pricecomparison websites. Finding the best dealrequires advisers to understand the consumer’sconsumption patterns. This is especiallyimportant for Economy 7 users. This is bestachieved by studying the customer’s bills orstatements, and consumers should be urged tobring bills or statements along to advicesessions.

For more information see ‘How to find outabout the best prices in your area‘ on Page 15.

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Incentives

A £10 cash incentive proved insufficient to getpeople to engage with the project and completediaries of their switching experience to aidproject evaluation. Only two diaries werereturned. People were engaged by free lightbulbs and these proved to be a popular draw onthe street outreach. Free light bulbs can oftenbe sourced from energy companies, especiallyif housing associations can certify that they willbe distributed to low-income, elderly or otheradditionally disadvantaged groups.

On average it was expected that people whoswitched to the cheapest prepayment dealwould save around £200 a year and this figurewas used prominently and extensively in thepublicity material. However, this did not appearto be a spur to action, possibly because peopledid not actually believe they would save money– a cynical view expressed by some consumersin the MORI focus groups. It may be moreeffective to translate this figure into a weeklysaving or comparing it to a product, such as ‘Xweeks free bus travel’ or ‘X weeks free energy’(at current prices £200 translates to about twomonths’ expenditure for an average gas andelectricity PPM user).

Discussing switching with consumersin the street

Energywatch found it very difficult to discussgas and electricity issues with people in thestreet due to the public’s general lack ofinterest and their unwillingness to talk topeople they thought were energy companysales staff. Residents of the area regularlyconfused Energywatch staff with energycompany door-to-door sales agents and did notunderstand why an organisation would come tothe area to give advice without there being acatch. Usually, however, residents were

convinced of the independence of Energywatchwhen reassured by a member of CVCHA staff. Itis vital to the success of any similar project tomake sure that people trust the independenceof the advisers and do not associate them withan energy supplier. The work necessary toachieve this should not be underestimated, butthe use of branded housing association clothingand familiarity with any advisers built up duringa longer-term project should help.

People were not prepared to be referred to adifferent location such as an office or privateroom for a more detailed consultation, so that itproved impossible to give advice using theinternet during street outreach. It is notrecommended that street outreach work forthis kind of project is attempted outdoors andwithout access to the internet.

Working in shopping centres

The Castle Vale area has two separate shoppingareas: a short high street with small shops, alibrary and the CVCHA offices, and a mediumsized retail park which contains a Sainsbury’ssupermarket, post office, pharmacist and otherstores. The project was unable to gainpermission to work on the retail park and theoutreach on the high street was ineffectivebecause of the very low number of people whoused the high street on the outreach day.

Sainsbury’s has its own energy brand and wasactively selling gas and electricity in its store onthe retail park. Getting permission to promoteswitching on retail parks where retailersthemselves sell energy may be problematic.However, work by the University of East Anglia,supported by Energywatch, in the Forumshopping centre in Norwich in March 2008attracted 80 participants, demonstrating thatthis kind of outreach can be successful in someinstances.

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Working outside schools

It was the project’s intention to engage parentsoutside the three primary schools in the areaafter they had dropped their children off in themorning, or before they collected them at hometime. The use of a mobile advice centre parkedoutside the schools was intended to allowparents to understand what the outreachworkers were doing. Schools and the localpolice were informed ahead of the sessions.

The days chosen for this work were blighted byvery cold, windy weather. In addition, in theprevious two days young people had beenabducted on their way home from schools. Thismade for a very distrustful atmosphere andprevented almost any engagement with parentswhen they had their children with them. Thismakes it very difficult to evaluate whether thiskind of outreach would be effective in othercircumstances. Parents did seem moreprepared to engage with the project when themobile advice centre was adjacent to theadvisers.

Working without familiar branding seemed tobe ineffective.

The project did find that parents were willing toengage in the morning after they had droppedtheir children off, but not for sufficient time toallow a detailed advice session. Thereforeleaflets were produced which explained theproject and why it was important to act andgave contact details for the project. These werethen distributed to passing parents. Very fewparents responded to these handouts byseeking further advice.

Parents with grown-up children

Parents of working age children as well asconsumers with elderly parents showed a realinterest in helping their relatives and friends toswitch to a cheaper deal. It is, however,extremely difficult to provide a concise summaryof this topic due to the complicated nature ofthe energy market and the range of possiblepersonal circumstances. The Energywatchwebsite currently has an advice section whichexplains how to find the best deal and how toswitch. This section will be transferred to thenew Consumer Focus web interface and it issuggested that people are urged to consult thiswhen they want to advise friends or relatives.

Where people want to help parents switch to thecheapest deal it is recommended that they areadvised to enrol their parents on the PriorityService Register (PSR – see page 25). This alsooffers a service for managing their parents’account through the Bill Nominee Scheme. Thishas the potential to enable people who cannotuse the internet, but whose children do haveaccess to the internet, to benefit from muchcheaper online tariffs.

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Ideal length of project

The project was designed to be intensive, of ashort duration and to build momentum. It alsohad to be completed during the life ofEnergywatch. This gave little time to learn andmodify the way the project delivered advicesessions. In retrospect, a less intensive butlonger project, conducted during the summerwhen the weather would have been better, mayhave delivered greater effectiveness.

Door-to-door selling

Neither Energywatch nor CVCHA felt comfortableengaging in door knocking to offer advice topeople in their own homes. The main reason wasthe very poor reputation that doorstep sellingagents have acquired.

That said, doorstep selling remains the mainchannel that prepayment meter users use to getinformation when deciding on which supplier tochoose. Surveys suggest that up to two-thirds ofprepayment meter users use door-to-door salesagents as their only source of information on gasand electricity prices. This leaves PPM usersopen to mis-selling. Ofgem, the gas andelectricity regulator, found that in 2007 63% ofelectricity and 56% of gas prepayment meterconsumers who switched supplier actuallyswitched to one of the three most expensivesuppliers, which suggests that mis-selling hastaken place to some extent. The project itselfsuffered from mis-selling, as a number ofconsumers who it had helped switch to the bestdeal subsequently switched to much moreexpensive deals. It is suggested that any projecthelping people to change supplier isaccompanied by work about the pitfalls ofdoorstep sales agents. The local TradingStandards office should be able to assist in thisrespect.

Informal contacts and follow-up

Many people came to find out how to get thebest deal and received informal advice from theproject. Getting people to actually switch to abetter deal was a challenge within the timeavailable, and in the informal setting that thisapproach used. Many people want their own timeand space to consider any advice given and anumber of people seen by the project came foradvice two or three times, so it is possible thatthere is a large pool of people who areconsidering switching and will need follow-upassistance to act.

This project did not have the resources to followup informal contacts. However, housingassociations are in the unique position ofknowing, or at least being known to, many of theindividuals seeking advice and so will be betterable to follow up informal contacts. Getting thisfollow-up process right will be one of the keyissues in making any switching project work.

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Using the media

The project made a decision during the designphase to limit work to Castle Vale arearesidents. This meant not using radio ornewspaper publicity because this may havedriven demand from other areas and potentiallyoverloaded the resources of the project. A frontpage article did appear in the local newspaperat the start of the project, but no residents citedthis as a reason for attending one of thesessions.

The value of national media coverage in raisingawareness of this issue is doubted becauseduring the course of the project Energywatchsecured significant national publicity for theproblems faced by prepayment meter users.

This included a front page article in The Timeswhich was published on one of the days whenthe project held street outreach sessions.Neither this article nor any other newspaperarticles were mentioned by any people spokento during the advice sessions. This questionsthe value of print media work, with only therelative success of the local radio phone-insundertaken by Beat the Cold (page 42) as aguide to what media work might be effective.

Impact of price rises duringthe project

During the design stage of the project BritishGas and npower (the two dominant suppliers inthe target area) raised their prices and three ofthe other four major suppliers did so in theweeks leading up to the project launch. Thisgenerated significant publicity for the issue,with many newspapers and other media outletsleading with price rise stories that mentionedhow these would impact on prepayment meterusers.

Just before the project ceased its advicesessions the last of the big six suppliers raisedits prices, which in turn forced EBICo to raiseits prices. For Economy 7 users the EBICo pricerise was so high that EBICo moved from beingthe cheapest supplier to the third mostexpensive supplier, depending on how muchelectricity was used.

This meant that what had been sound advicegiven in good faith was now inaccurate and allthe affected consumers were contacted byEnergywatch and advised to change again tothe new cheapest supplier.

On this basis, it is suggested that projects arenot run during a period of price changes. It isalso suggested that they maintain a robustrecord system so that advice can be followed upwith consumers if need be.

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Figure 4 Gas prices, medium user, Midlands Jan 2008

Figure 5-- Electricity prices, medium user, Midlands, Jan 2008

Historical gas and electricity prices

Unsurprisingly, the project encountered manyconsumers who were cynical about gas andelectricity prices. They believed that whicheversupplier was currently the cheapest would alsosoon increase their prices and lose this advantage.

To help counteract this belief, Energywatchproduced a series of charts which showed howprices had changed since 2003. A graph showinggas prices by supplier is given in Figure 4, and onefor electricity prices in Figure 5. These graphs clearly show that for prepayment

meter users in the Castle Vale area (the WestMidlands electricity region), British Gas andnpower have consistently been the most expensivesuppliers, and that Scottish and Southern Electric,Scottish Power and EDF Energy have a history ofoffering lower prices. (EBICo is not shown on thesecharts because the data was not available). Data isnot available to produce similar graphs for allareas and although history is no predictor of thefuture, the historically cheaper and more expensivesuppliers can be seen in Figures 4 and 5.

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Figure 6 GB average cost of gas, medium user, PPM

Figure 7 GB average cost of electricity, medium user, PPM

There are no commercially availabledatabases of historical prices which housingassociations can use to demonstratehistorical pricing trends. Figures 6 and 7show the trend of British average prices sinceApril 2004. They generally show British Gasas the most expensive supplier of gas andnpower as the most expensive supplier ofelectricity to the PPM market.

These figures do not show EBICo prices.National average prices can be misleading.Advisers should stress this and use currentlocal prices when advising consumers. Thebest comparisons will be made from one ofthe switching websites (see page 15).

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Do consumers switch anyway?

Some prepayment meter users do indeed switchsupplier and do so regularly, usually at theprompting of door-to-door sales agents. Indeed,the project found that shortly after our advicesessions had started npower ran a successfulsales drive which prompted consumers to switchto them, including some of those people whohad been advised by the project that EBICo wasthe cheapest supplier for them. Ofgem haspublished its own research showing that overhalf of the prepayment meter users who doswitch supplier actually switch to the three mostexpensive suppliers. Energywatch believes thatthis is, in large part, a reflection of door-to-doormis-selling by those energy companies and hasconsistently campaigned to stamp out mis-selling by suppliers. It is suggested that anyproject to encourage prepayment meter users toswitch energy supplier is accompanied by acampaign or advice on the pitfalls of door stepselling agents. Your local Trading Standardsoffice may be able to help organise such acampaign.

Advice for making similar projectswork

Learning from the success of Beat the Cold

Beat the Cold is an independent charity in Stokeon Trent that has run similar outreach events inthe towns of the area. Energywatch supportedthree such events in the summer of 2008, whichproved to be more effective than the outreachproject in Castle Vale. The following are some ofthe factors which Energywatch believescontributed to the success of these events:

• Beat the Cold has a higher local profile thanEnergywatch, possibly because it is local andhas a history of working in the area. This maymean consumers were willing to believe thatthe sessions were worth attending.

• The advice sessions were a partnershipbetween Beat the Cold, Energywatch and theStoke on Trent Warm Zone. Each partneroffered a different service, which meantconsumers attending got more out of theevent than simple advice on how to switch.

• Beat the Cold engaged a local PR firm toraise publicity ahead of the outreachsessions, including advice sessions andinterviews on local radio.

• The advice sessions were planned for dayswhen many people would be ‘out and about‘.Venues were easily accessible to otherscheduled events such as the local marketday, or held in a library which was hosting afamily history research day.

• Beat the Cold used several workers who‘worked‘ the local streets around theiroutreach events encouraging people to attend(the Energywatch/ CVCHA project alsoemployed this technique and found that itrequired known CVCHA staff to do this if itwas to be effective).

Other advice

The most successful way of encouraging peopleto take advantage of our outreach was word ofmouth. A number of people used the projectbased on the strength of a personalrecommendation. This could have been from afriend or neighbour, or a trusted member ofCVCHA staff. It is suggested that similar projectsadopt an approach to advice delivery thatfeatures ‘champions for the cause‘, througheither:

• Training a small number of local residents todo the outreach and advice themselves intheir immediate area. This ‘cascade‘ outreachhas the advantage of trusted communicationroutes and the ability to give bespoke adviceas and when local residents want it. Thedisadvantage is that people may not want todiscuss account problems or debt with theirfriends or neighbours. This could beovercome with a referral route to otheradvisers.

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• Training members of staff within the housingassociation, or groups of housingassociations, to become energy experts.These staff could then provide a wide range ofadvice over a longer period of time and in aless intensive way, enabling them to learnwhat methods are effective. It would alsoprovide the time to build and maintaincredibility with residents. Keeping the project‘in house‘ should increase buy-in andreferrals from across the housing associationand partners. Section 6 lists organisationsthat could help with training.

Using a longer-term project with well-knownchampions is also likely to be able to providemore effective support and follow-up to peopleconsidering switching, but who need more thanone advice session to convince them to switch.

The Castle Vale project found it very difficult tofully engage the public and third sectororganisations in the area and to get them torefer their clients. It is suggested that this wasa major failing of the project and that otherprojects would be more successful if they couldget full buy-in from organisations that workwith the residents of the area.

To trade on the effectiveness of personalrecommendations, the initial leaflets carried anendorsement of the project from a localperson. This proved very effective with peoplewho knew the person involved but completelyineffective with other residents. Where there isa lack of universally known and trusted localfigures it may be that a number of differentendorsements are needed.

Castle Vale high street has a very low footfallduring the day and the MORI focus groups weresplit on the best locations for street outreachwork. Other similar projects in Liverpool andNorwich have encountered differing resultswith street outreach in shopping areas.However, one factor in common with the workin Castle Vale is that people are very resistantto being referred to a different location forfurther advice. The obvious solution would be touse internet price comparison tools in thestreet, but this presents a number of technicaland security difficulties.

The most effective outreach appears to beconducted in public buildings with a highturnover of people and with secure access tothe internet and a private area should peoplewish to discuss a confidential issue.

Project costs and value for money

Energywatch spent approximately £12,000 onthis project including about £8,000 worth ofadviser time on outreach sessions and inresolving the problems generated when back inthe office. Similar projects could be managedon much smaller budgets, as most advicesessions were considerably overstaffed. It isestimated that the 19 advice sessions couldhave been provided with the same level ofsupport for £5,000 if the number of advisershad been optimised.

It is estimated that on average consumers whoswitched supplier when advised by the projectsaved about £90 a year on their electricityaccounts and about £125 on their gas accounts.This level of saving means that the projectwould have needed to help just 55 consumersswitch their gas and electricity supplier in orderto have saved the residents more than wasspent on the project. However, the savingsmade by just 23 consumers switching their gasand electricity supplier would be more than thecost of a smaller project, which is estimated tobe about £5,000.

This analysis does not take into account savingsresidents will have made through Energywatchsecuring debt write-offs and/or compensationpayments when resolving the account problemsidentified in the outreach.

SECTION 9

This section was produced anddesigned by Yarrow, who specialisein working with people with learningdifficulties.

Below is some best practice adviceon how to communicate effectively.This is followed by a guide fortenants on how to get the bestdeals, which you may photocopy anddisseminate.

Effective communicationbetween you and someonewith a learning difficulty

Best practice

Best practice during the meetingbetween you and the person wouldrequire you to uphold the individual’srights to accept/decide whether ornot to take part in the meeting, takethe advice of the staff (if staff arepresent/ needed for this person) andto follow the next few steps in thisguide to ensure an effective andpleasant meeting between you andthe individual.

Section 10:

Advising people withlearning difficulties

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Body language

Your body language is very important inthis meeting. Unless instructed, sit withthe person if they are seated and/orstand if the person is doing so. Do notstand or sit too close as this can beseen by many people as intimidatory.Eye contact is important but do notstare/maintain eye contact for too longas it too can be seen as intimidatory.For example, when engaging with theperson you should shift your gazebetween the person and your booklet.Not only will that help to maintain amore positive interaction but it will alsoreinforce your booklet and its relevancein informing the person of why you arethere to visit. In relation to your body,keep your body in a neutralstance/position whereby you are notcrossing any limbs or placing yourhands where the person cannot seewhat you are doing. When makinggestures with your hands do not makeany sudden or large gestures as thesecan distract the person or couldconfuse them, so keep gestures to aminimum and avoid quick and suddenmovements.

Communication

Only if necessary, consult staff if theyare present so as to find out thepreferred method of communication ofthe individual. Speak to the individualwith a calm tone and speak clearly.Avoid using abbreviations and abstractwords as this can be quite confusing.Use simple and clear language andmake your sentences as short aspossible. It is very important to notethat not everyone can read or write so itwould be useful to use visual aids forthis person. There are suitable visualaids In the easy read sheets on pages46-52.

Rapport

It is important to build a rapport duringthis meeting with the service user forthe sole reason that if this person is tolisten to what you say, retain as muchinformation as possible and to decideon whether or not he/she should act onthe information given, you will need toengage with this person on his/herlevel. Use the steps above to try andcreate a friendly and open rapport inthe meeting between you and theindividual.

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advice sessions, energy 33,35aggregation deals 17Association of UK Energy Agencies(AUKEA) 27annual statements, Ofgem rules 8 Beat the Cold 42billing

information displayed on 8methods of 14Ofgem rules on 8

Bill Nominee Scheme 37British Gas

Energy Trust 23, 27Essentials Combined Scheme 22-23

budgeting payment schemes 18capped price tariffs 14-15, 18card see prepayment cardcash, payment by 14, 18Castle Vale switching project 32-43Charis 27cheque, payment by 14, 18Child Poverty Action Group (CPAG) 27climate change 27complaint handling standards(Ofgem) 29complaints, making 28-29‘Confidence Code’ 15Consumer Direct 9, 26, 28Consumer Focus 26, 28, 32Cornwall Sustainable Energy Partnership 27credit meter 13, 20‘deadlock letter’ 29Debt Assignment Protocol (DAP) 16Department of Energy and ClimateChange (DECC) 11debt and supplier/meter switching 9, 16Department for Work and Pensions(DWP) 15direct debit 14, 18disabled consumers see Priority ServiceRegister; learningdifficulties and energy advice

doorstep sellingOfgem rules on 9and prepayment users 12bypassing 17and energy campaigns 38

DTS meters see Dynamic Teleswitchingdual fuel deals 14Dynamic Teleswitching (DTS) 17Eaga 26Ebico 14, 39Economy 7 tariff 13, 16, 39Economy 10 tariff 13, 16emergency contact numbers 31emergency credit 17energy advice sessions see advicesessions, energyEnergy Assist (EDF) 23Energy Efficiency: the guide 26Energy Efficiency Partnershipfor Homes 26EnergyExtra 17Energyplus Care 24energy price plans see energy tariffsEnergy Saving Trust 26Energy Supply Ombudsman 26, 28energy tariffs 18-19Energy Trust (EDF) 23Energywatch see Consumer FocusEnergywatch consumer manual 17Equidual tariff 14Equigas tariff 14Equipower tariff 14Essentials Combined Scheme 22-23First Step Scheme (npower) 24fixed price tariffs 14-15, 18flexible payment schemes 18Fresh Start Scheme (Scottish Power) 24Fuel Direct 14, 18 Fuel Rights Handbook 27gas emergency contact number 31Green Homes Service see EnergySaving TrustGreen tariffs 14, 17historical energy prices 40-41

index

INDEX

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holidays, ensuring supply 17Home Energy Care Register 25Home Heat helpline 22inhome display (IHD) 10, 11internet tariffs 14Keeping Warm in your home: AHousing Association tenant’s guide 27key see prepayment keylearning difficulties andenergy advice 44-52limitations on switching see switching, limitationson meters, types of 13mis-selling 38, 42National Energy Action Week 2008 7National Energy Action (NEA) 26-27New Progress Housing Association 27Ofgem

complaint handling standards 29contact details 25new package 8smart meter consultation 11

older people, tariffs for 14ombudsman see EnergySupply OmbudsmanOne Bill 14online account management 19paper bills 8, 14paper tokens 13payment card 14payment, methods of 14, 18-19 prepayment card/key 13, 17prepayment market, key points 12prepayment meter (PPM)

contact numbers for users 31extent of use 13and other payment methods 12-17useful information on 17

prepayment premiumcampaign against 2, 5determining 8-9lifting of 5

price comparison services 15price plans see energy tariffsPriority Service Register 25, 37Prompt Pay tariff 14

PSR see Priority Service Registerpublicity material, in energy campaigns 33-34, 39quarterly bill payment(see also standard credit) 13, 14reward schemes 14sales and marketing, Ofgem rules on 9savings through switching 5, 7,

18-21, 32shopping centres and energycampaigns 36smart meters 10-11social tariffs 22-25special tariffs 14Spreading Warmth (npower) 24standard credit 13, 14standard direct debit 15standards of conduct, Ofgem 8street outreach and energycampaigns 33, 36switching

alternatives to 17from prepayment to credit meter 20limitations on 16-17steps in 21suppliers 21

tariff information, on bills 8telephone complaints 28Tenant Empowerment Toolkit 26Third Sector Declaration onClimate Change 27three-rate meters 17time of use tariffs 10(see also Economy 7 tariff;Economy 10 tariff)trust funds (of energy companies) 23, 27undue discrimination, Ofgem rules on 9vulnerable consumers see disabledconsumers; learning difficulties andenergy advice; Priority Service RegisterWarm Response (npower) 25“wind on” 17word of mouth(in persuading switching) 42-43Working as an Energy Championin your Housing Association 27

Guide highlights:

• Prepay meter customers save about £473 million a yearbecause of our campaign to get them a fairer deal for theirenergy.

• Customers can reduce their energy costs by switchingsupplier and save up to £100 by changing their paymentmethod.

• Housing associations are perfectly placed to run projects tohelp their tenants get the best energy deal available forthem.

The National Housing Federation represents 1,200 not-for-profit, independent housing associations whotogether provide two million homes for around fivemillion people in England.

Housing associations have launched iN business forneighbourhoods, a project to improve performance andchallenge negative perceptions of the sector and itscustomers. They have made fresh commitments toneighbourhoods, customers and excellence. For more information see www.iNbiz.org

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This document is printed on re-cycled paper using bio-degradable inks as part of National Housing

Federation’s commitment to protecting the environment.

National Housing FederationLion Court25 Procter StreetLondon WC1V 6NYTel: 020 7067 1010Fax: 020 7067 1011Email: info@housing.org.ukwww.housing.org.ukwww.iNbiz.org

Co-funded by

www.oakfnd.org