John Baron MP criticises energy suppliers for failing customers

MP highlights ‘Failing Four’ in Parliament and the Secretary of State promises action

During Department of Energy and Climate Change questions in the House of Commons last Thursday John Baron MP secured a Government promise of action against four energy suppliers which are failing their customers.

Earlier this year John Baron MP was invited by the Government to chair the Billing Stakeholder Group (BSG), which consisted of consumer groups (including Which?), Ofgem, Department of Energy and Climate Change officials and the Energy Retail Association [representing the energy suppliers], and which was to produce recommendations as to how energy suppliers can better help their customers to reduce their energy bills. The BSG sent its recommendations to the Minister in September. One of the recommendations was that the energy suppliers should inform their customers, by way of a standalone communication, as to the money they could save if they were on that company’s cheapest standard direct debit tariff. This communication was to be sent out in time for the winter months. Yet John and Which? have unearthed the fact that four out of the six energy companies have failed to abide by the spirit of this recommendation.

In the House of Commons, John asked,

“The Minister will be aware that one recommendation of the billing stakeholder group was that energy suppliers should send a tailored communication to customers, detailing in pounds, shillings and pence how much they could save by transferring to that company’s cheapest standard direct debit tariff in time for this winter. Two suppliers, Scottish Power and Npower, have complied; four have not. Will the Minister now look at bringing those four into line?”

The Secretary of State, Chris Huhne, replied,

“…it is crucial that people are provided with clear and specific advice on what they can do. He is absolutely right to draw attention to the two large energy companies that have already complied, and yes, indeed, we are bringing pressure to bear to ensure that all the others follow.”

John said afterwards,

“Four energy suppliers have clearly failed their customers by choosing to ignore a clear recommendation in time for this winter. It is therefore good the Government agrees action now needs to be taken to put this right.”

“Longer term, this proves the Government and Ofgem must be more prescriptive with the energy suppliers.”