Switch fuel suppliers and save £1bn

CONSUMERS could save £1bn a year by switching fuel suppliers this winter, according to Government estimates. Trade and Industry secretary Patricia Hewitt will launch a campaign aimed at getting consumers to 'switch and save' suppliers in the run up to winter today.

The Government claims first time switchers could save up to £100 a year, while changing from standard payment methods of cash and cheque to direct debit could save a further £20 a year. Installing cavity wall insulation will save a further £35 a year.

Hewitt said: 'We know that for many families fuel bills are a significant part of their weekly outgoings, and we need to do more to help the most vulnerable consumers benefit from big savings that are out there.

'Half of all households have never switched energy supplier, despite the fact that there are big savings still to be made. Our message is simple – why pay more for your gas and electricity than you need to?'

Fuel suppliers, including British Gas, Powergen and Scottish Power, have all increased their charges recently to reflect the high price of oil. In real terms fuel is still cheaper than when the Government came to power in 1997.

The DTI is supporting consumer watchdog Energywatch‘s Energy Smart campaign to raise awareness of how to reduce fuel bills.

Energywatch chief executive Allan Asher said: 'Consumers have been hit hard this year by rocketing fuel bills but being energy smart can save money. The hike in energy bills is forcing vulnerable customers into fuel debt and poverty this winter.

'Dumping expensive suppliers, being more energy efficient and changing payment method are all ways of saving money.'

However, the trade association for fuel suppliers, The Energy Retail Association, said the campaign was 'too simplistic'.

Head of communication and policy Russell Hamblin-Boone said: 'It‘s sticky plaster mentality. It may solve the problem this winter, but what about the next? We need to empower people to control their fuel usage.'

The association claimed people who have not switched suppliers are typically elderly or financially vulnerable and, as a result, are unlikely to switch in future.

Hamblin-Boone said: 'We are producing a guide which we will distribute through doctors and post offices which will show consumers how they can work with their supplier to reduce bills.'