Which? report exposes the cold truth of the energy companies

Helena Drakakis Feb 15, 2012

As British Gas prepares to announce profits of £556m, a Which? report reveals the lies the energy companies are telling their customers. Helena Drakakis asks why the government is not reining in 'the big six'

 
Recent statistics released by the Department of Health are a sobering reminder of the perils of a cold snap. Mortality rates rise 19% in England during the winter months and that can amount to 1,560 more deaths per week.

So, as the temperature plummets, it’s those like the homeless who suffer, but also the elderly and those on low incomes – sometimes forced to choose between food and heat.

Amid this are the big six energy companies. Not the big six that are tasked with keeping us warm at affordable prices, you understand. It’s the big six who are answerable to their shareholders. The big six who keep the British public hooked on expensive, imported fuels and the big six that have, thus far, not been sufficiently reined in by government or regulators.

A report revealed by Which? Magazine this week adds fuel to the fire. But even the fuel, it seems, is being miss-sold. If you were struggling to make ends meet and wanted to change your energy supplier, the claims that your bill would be reduced has been exposed as hot air.

In the sting, supermarket sellers of energy packages were approached by Which? undercover teams. In some cases, the undercover researchers were told that if they were on a standard tariff, they could save up to £142 per year on their bill. However, when Which? Did the arithmetic, they estimated that customers would be between £39 and £311 worse off had they changed supplier.

In phone-calls to energy suppliers, the teams also found that although they had asked for the cheapest deal, that’s not always what they were quoted. Plus, while some companies performed well, others, like British Gas and E.ON got it consistently wrong. That’s British Gas, who are expected this month to announce profits of £566m.

Rising fuel prices have already forced many into fuel poverty. It’s estimated that around 6.3 million people in the UK fall into this category. The big six companies – EDF, British Gas, E.ON, npower, Scottish Power, Southern & Scottish Energy – control 99 per cent of the energy market.

To mislead customers is unethical. Full stop. To mislead customers who may be vulnerable and may be choosing between heat and food is unforgiveable.

Whilst it would be naive to expect energy companies to care who they keep warm or how they keep them warm, isn’t it about time our elected representatives stopped cosying up to the big six and gave them their final demand?