9th Oct 2015 10:40
LONDON (Alliance News) - The Department for Energy and Climate Change on Friday said new data has shown there is USD2.20 billion worth of savings to be made by UK households by switching energy supplier but said almost two-thirds of people have no idea how much they could save.
"As colder weather sets in, the government revealed new figures estimating that 11.0 million households still stand to save GBP200 or more (per year each) by switching their gas and electricity supplier," the department said in a statement.
However, a recent poll of 2,000 "adults" by the government department showed only 6% were aware they could save GBP200 or more by switching and 21% believed they would only save GBP50 or less per year by switching suppliers.
More importantly, almost two-thirds of those polled said "they had no idea how much they could save" by switching energy supplier.
These findings mark the second phase of the government's Power to Switch campaign which was launched in early 2015 in an attempt to encourage more UK households to switch energy suppliers as the government tries to improve energy market and boost consumer engagement.
When the campaign was launched in February, it attracted 350,000 visits to its website in the first month alone, resulting in 130,000 households switching supplier, representing an 80% rise from the same period a year earlier.
The UK government claims those 130,000 households shared GBP38.0 million in savings.
"Thanks to government action, there are now over 31 domestic suppliers in the market, new comparison tools and clear usage information on all bills. Switching is faster too, and our ambition is for consumers to switch in just 24 hours by 2018," said Amber Rudd, energy secretary.
The amount of independent suppliers in the UK is rising and they are collectively breaking the stranglehold of the traditional 'Big Six' providers which comprise of British Gas, which is owned by Centrica PLC, SSE PLC, ScottishPower, E.On, EDF Energy and nPower.
The latest figures from independent energy market consultancy firm Cornall Energy show independent suppliers in the UK now hold a collective market share of 13.4% and acquired more new energy accounts in the three months ended July 31 than they held in total four years ago.
The government also attempted to stress that bill payers don?t have to find the details on their energy bills to switch because government-mandated QR codes on all energy bills now mean they can scan and automatically load key energy details, such as usage and current tariff onto smartphone and tablet apps, specially developed by price comparison sites.
A QR code is used to link people to products and services, or even websites, via a type of barcode that can be scanned by numerous pieces of technology.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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