MSE News: Renters only half as likely to switch as homeowners, says Ofgem

in Energy
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Ofgem says there's a lack of awareness among tenants about their rights to ditch and switch energy providers...
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Renters only half as likely to switch as homeowners, says Ofgem

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  • millermiller Forumite
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    With the current length of time switching takes, and given that some tenants will be out in 6 months you can see why they don't bother.
  • minerva_windsongminerva_windsong Forumite
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    Some letting agencies just won't let you switch - I remember moving into my student house and being told we couldn't switch the suppliers. Still not entirely sure why as we didn't get any bills included in our rent...
    "A mind needs books as a sword needs a whetstone, if it is to keep its edge." - Tyrion Lannister
    Married my best friend 1st November 2014
    Loose = the opposite of tight (eg "These trousers feel a little loose")
    Lose = the opposite of find/gain (eg "I'm going to lose weight this year")
  • millermiller Forumite
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    You can sort of understnad why, if new tenants move in whilst a switch is taking place it is going to be a nightmare to sort out the paperwork, given that one energy company in particular has been struggling with the basics.

    Then on the other hand lettings agents immediately signing new tenants up to their preferred supplier is out of order (was on BBC Watchdog a while back).
  • Some letting agencies just won't let you switch - I remember moving into my student house and being told we couldn't switch the suppliers. Still not entirely sure why as we didn't get any bills included in our rent...

    That's the point of the article - there would have been nothing to stop you going ahead and changing anyway.
  • Bark01Bark01 Forumite
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    Quicker switching is on the way though, 3 day switching should be with us by the end of the year. Massive caveat in that the 3 day switch doesn’t include any complications that hold up switches like debt on account or meter mismatches. But for new tenants there should be no debt and most rented properties will have straight forward metering arrangements

    I’d say the biggest reason for non switching is that a large proportion of rented properties have prepayment meters and the prepayment infrastructure has a physical cap on the number of tariffs it can hold. This means the range of tariffs is limited so there is less saving to be made from switching.

    Once SMART meter prepay is rolled out the physical cap will be lifted so hopefully we should see more competitive PPM tariffs.
  • Puffin74Puffin74 Forumite
    23 Posts
    With the time it takes to switch energy suppliers these days reducing, just because you rent a house shouldn't mean you can shop around for the best deal for you - because even if you move within 6 months you take the 'tariff' with you, it's not left to the new tennants surely?
  • lstar337lstar337 Forumite
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    Puffin74 wrote: »
    With the time it takes to switch energy suppliers these days reducing, just because you rent a house shouldn't mean you can shop around for the best deal for you - because even if you move within 6 months you take the 'tariff' with you, it's not left to the new tennants surely?
    I don't believe you can always take it with you. It is not left for new tenants though, they will have a deemed contract on the most expensive tariff.
  • Bark01Bark01 Forumite
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    lstar337 wrote: »
    I don't believe you can always take it with you. It is not left for new tenants though, they will have a deemed contract on the most expensive tariff.

    Whether you can take the tariff with you will be written in to the Tariff T&C’s. Most suppliers let you take your tariff, I’ve only heard of Scottish Power specifically blocking it in their T&Cs

    As the poster above states you will be on the last suppliers deemed tariff which in most cases will (following RMR changes) be priced identically that suppliers standard tariff. I say most cases as some of the smaller suppliers seem to be ignoring this part of the RMR legislation and adding a premium to it (something the big ones did but have since stopped).

    The deemed/standard tariff will not be the cheapest tariff but it also won’t necessarily be the most expensive tariff, long term fixes and green tariffs will generally be more expensive. It won’t have an exit fee so you are fee to swap from it as soon as you like/can.
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