Switching Energy Suppliers

Last week, Ofgem, the UK’s energy regulator, published their findings of an investigation into “standard variable tariffs”.

The report is rather timely, as winter is the time of the year when energy bills are most expensive.

Standard variable tariffs are often more expensive than fixed deals. Ofgem’s investigation looked at both the average cost of energy bills for households on standard variable tariffs, as well as the suppliers with the largest percentage of customers on this type of tariff.

The report found that 20 million households, which constitutes 66% of all households in the UK, were on a standard variable tariff. 91% of SSE and 74% of British Gas customers are on standard variable tariffs, while Scottish Power was amongst those providers with the highest average energy bills for their customers on standard variable tariffs.

Ofgem has calculated that customers on standard variable tariffs could save £174 a year by moving to another deal.

Price comparison websites are a great way to see if you’re paying the lowest rate for your energy, and to determine if you can save money by switching suppliers.

A list of Ofgem approved energy comparison websites can be found here: http://www.goenergyshopping.co.uk/energy-tariffs-and-deals/comparison-sites

While this winter has been mercifully mild so far, you never know when a cold snap will occur. And in these circumstances, there are a significant number of people who face the choice of heat, or food.

Unfortunately, it is frequently the elderly and most vulnerable in our community who end up paying the most for energy, as they often do not have access to these online resources. In this holiday season, I would encourage everyone to reach out to those vulnerable neighbours, friends, and family members, to help keep the heat on by ensuring that they are not overpaying for energy.

Competition in the UK Energy Market

Yesterday I spoke about the UK energy market, and its failure to work for customers.

During the global recession, which saw millions struggle to find a stable income to keep food on the table and a roof over their families' heads, the Big 6 energy companies saw record profits. At the same time, they were overcharging customers by billions of pounds, and cutting thousands of jobs.

You can watch the full speech below:

Fuel Poverty

On Wednesday 4 February 2016, I gave a speech in Westminster on the far-reaching effects of fuel poverty.

Fuel poverty has been an issue which constituents have approached me with on numerous occasions. Unfortunately, this is not surprising, given that nearly 40% of households in Scotland face fuel poverty every winter. I’ve questioned the UK Government on multiple occasions on its inaction on fuel poverty and the systemic overcharging of customers by the Big 6 energy providers, but unfortunately the Tories have not taken any substantive action.

Fuel poverty has more far-reaching effects than just cold homes. The combination of mental and physical health problems, poor diet, emotional turmoil and diminished educational opportunity caused by fuel poverty is a recipe for condemning people to the cycle of poverty.

The cuts the Tories have implemented on those on lower incomes have only mothballed into larger problems. For example, increased benefit sanctions put even more people at risk of fuel poverty because they hurt those in lower-income households, rather than those better-off. And lower-income households are the ones most at risk of facing fuel poverty.

The UK Government’s cuts to the Department of Energy and Climate Change has meant that energy efficient and consumer-friendly energy subsidies, such as the Green Energy Deal and the Green Deal Home Improvement Fund, further punished energy consumers wishing to make their homes more energy efficient.

Ultimately, we must provide a fairer deal for hard-working individuals and families, and not force them to bear the cost of letting the producer interest come out on top.

We can no longer stand by and allow this to happen. In a modern developed society, the fact that 40% of Scots face this dilemma every winter is a disgrace. Real, meaningful action must be taken.

My full speech can be viewed below:

 

Tackling Fuel Poverty

Phil has highlighted the far-reaching effects of fuel poverty, and has called for practical steps to be taken to tackle the three leading causes in a speech in Westminster on Tuesday 24 November 2015.

40% of households in Scotland are considered to be in fuel poverty.

In his speech, Phil noted the negative impact fuel poverty has on health and educational attainment for children, including recent findings that adolescents living in cold homes are five times more likely to have multiple mental health problems than adolescents living in warm homes, and that children living in cold homes are twice as likely to have respiratory problems than those living in warm problems.

Fuel poverty is a result of three major factors- low household income, fuel costs, and the poor energy efficiency of homes.

Phil criticised the UK Government’s decision earlier this year to cut programmes designed to help households make their homes more energy efficient, such as the Green Deal Home Improvement Fund, solar subsidies, and feed-in tariffs.

Commenting on the scope of impact fuel poverty has on every aspect of life, Phil said:

 

“The combination of mental and physical health problems, poor diet, emotional turmoil and diminished educational attainment caused by fuel poverty is a recipe for condemning people to the dreadful cycle of poverty. In essence, they are poor and paying for it.”

Phil called for a fair deal for energy consumers to address rising fuel costs. Commenting on the energy market, Phil said:

 

“The energy market is dominated by the big six, and the days of standing by while they address their needs over those of consumers and make massive profits while so many suffer from fuel poverty must come to an end.”

Phil further noted the ways in which the UK Government could take practical measures to address low pay, stating:

“A living wage for everyone in work, not those just over the age of 25, would allow young individuals and families to afford the rising costs of fuel.”

The full speech can be viewed below: