It has been several years since consumers were first afforded the freedom to choose their energy suppliers – and we are now confronted with an overwhelming choice. Watchdog Energywatch claims that this sector may have seen more consumers change supplier than any other (38% in the gas market, 37% for electricity).

Before you decide to try another supplier it may be worth getting an objective view about the benefits. The Consumers’ Association runs a ‘Switch with Which?’ campaign which provides free advice on the best deals on price in a number of markets, including the energy sector. To view current information, just visit www.switchwithwhich.co.uk.

The Energywatch website, www.energywatch.org.uk, names and shames the most complained about providers. Although some complaints may not have been justified, the bar charts may give you some guidance.

Promotional activities

There are four ways in which new energy suppliers may promote their services, these are as follows:

• Advertising - on television, radio, in newspapers, magazines or over the Internet;
• Direct Mail (leaflets through the door);
• Telephone - you may be asked to agree to receive more information, or a visit from a representative or receive an SMS message/text;
• Doorstep Selling - an agent of the supplier calling at your door unannounced to sell you new gas services, electricity services or both.

Do I have to change?

No, you are free to remain with your existing supplier. Until you sign a contract with the new supplier, they cannot supply you.

Remember, if you decide to change supplier there is no hurry to sign a contract. Shop around for the best deal and look for other offers. If you are asked to sign a document described as a registration form or proof of visit form, check that it is not a contract or an agreement. Some unscrupulous sales representatives may hide a contract underneath the form or try to get you to sign without your knowledge.

Remember - the agreement will contain a lot of small print. Always read the small print before signing the contract.

What should I ask before signing a contract?

When you sign up with a new supplier you will enter into a legally binding contract. The contract will contain many terms and conditions relating to such matters as how to pay, cancellation periods and the duration of the contract.

Before you enter into a new supply agreement you may find the checklist at the end of this leaflet helpful in getting all the information you need to decide whether to switch supplier.

Will I be able to change my mind once I’ve signed a contract?

This will depend on where and when you signed the new contract. If you signed at home following an unsolicited visit from the company (this means you did not invite the company round to your property), the new supplier must give you a notice of cancellation giving you a minimum of SEVEN DAYS in which to change your mind and cancel the agreement. If you have signed a contract at home and not been given a cancellation notice, contact your local Trading Standards Service or Citizens Advice Bureau for advice. The contract may be illegal and void if no cancellation notice has been provided. The clock starts running from the day that you signed the agreement, so you will need to act quickly.

If you have received sales literature or contract details via the Internet, television, mail order, telephone or by fax, you must be given a period of seven working days in which to cancel. This is calculated from the day after which you agreed to go ahead with the contract. During this time, you can change your mind and cancel the contract. You must do this in writing.

Some companies may give you longer to change your mind. Do not be afraid to ask about the cancellation period and always check that it is written on the contract. If you sign on the trader’s premises you will not have any automatic cancellation rights.

What about dual fuel offers?

There are many companies that offer packages to supply you with both gas and electricity. Although this may seem like a good deal, you may be able to obtain the services more cheaply from different suppliers. Always shop around for the best deal. If you decide to go for a dual fuel contract, ensure you know how much you will be paying for each service and when you will be billed.

Double charging

Transitions are not always smooth, and some consumers have complained that there has been overlap where a prior supplier continues to bill for a period when a new supplier has been appointed. If this has happened, try to resolve it directly with the company which should not have charged you by sending a copy of the bill from the other supplier. If the matter cannot be settled informally, ask Energywatch to intervene. If you supply the watchdog with copies of the bills for the relevant period, its officers should be able to apportion the bills appropriately.

Forged contracts

In the past, some consumers have fallen unwitting victims to rogues who have made applications secretly and without their consent, in order to make a commission. Of course, the first the consumer hears of it is when the supplier makes a demand for payment. If someone impersonates you in this way, it is fraudulent behaviour which amounts to a form of theft. You should report it to your local police station and advise Trading Standards Officers. A local authority in London was successful in an investigation into such activities which led to a twelve-month prison term for the offender for “falsification of energy transfer contracts”. In civil law, a contract would also be void on the basis of illegality or under the doctrine of mistake.

To tackle the scourge, Ofgem has implemented and oversees the Erroneous Transfer Consumer Charter (ETCC). It recommends best practice for suppliers including verifying with a consumer a written request to transfer before implementing it. In October 2003, suppliers entered into a voluntary agreement to compensate victims.

What should I do if I have a complaint?

The first step is to contact the energy supplier directly. If the company does not resolve the problem, contact the head office of Energywatch which will direct you to a regional contact:

Energywatch Head Office
4th Floor
Artillery House
Artillery Row
London
SW1P 1RT
Tel: 08459 06 07 08
Fax: 0207 799 8341
Textphone: 18001 0845 906 0708
email: enquiries@energywatch.org.uk
Website: www.energywatch.org.uk

Lastly, contact Ofgem (Office of Gas and Electricity Markets) at its head office:
9 Millbank
London
SW1P 3GE
Tel: 0207 901 7000
Fax: 0207 901 7066
Website: www.ofgem.gov.uk

Challenging a contract under the law

Even if you have signed a contract, you may still be able to challenge it if:

1. a particularly onerous term was not pointed out to you; or
2. the term in question was set out in a separate document which was not the one you signed and you, therefore, didn’t have notice of it; or
3. in spite of seeing the term and signing up to it, it is still neither fair nor reasonable by objective standards (Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999).

Gas and electricity competition - consumer checklist

• Beware of bogus callers - always ask for and check identification.
• Never be pressured into signing a contract. If you have doubts - do not sign.
• Always check for hidden extra costs and termination charges before you sign.
• If you are asked to sign any document, such as an introduction form or proof of visit form, check that it is not an agreement. If you have any doubts - do not sign.
• If you have any special needs such as a pre-payment meter or arrangements for paying bills, check that the supplier can accommodate you. The supplier is not allowed to refuse your business on the basis that you have special needs.
• How much will the gas or electricity cost? - If you are looking at price comparison tables check that the same level of service is on offer.
• Is the contract rolling or a fixed time contract? Rolling contracts last for as long as you want them to.
• How long is the contract? Will you be tied to that supplier for a number of years? What about cancellation charges?
• Are there any standing charges? If so, how much?
• What payment options are there? Are the prices different if I pay by direct debit? What about bills, pre-payment meters or instalment plans?
• How often will I get a bill or statement?
• What other services are on offer? Are there any energy saving measures that could reduce the bill?
• Are there any dual fuel deals that could reduce the bill?
• What help can the supplier give to repair or service your boiler, gas or electricity appliances?
• What help can the supplier offer if you have difficulty paying your bills?
• Who do you talk to if you want more information or have a complaint?
• Give your existing supplier twenty-eight days notice of your intention to switch- as Energywatch recommends.
• Take a meter reading on the determined date of transfer to ensure that you are not charged twice for the same fuel.
• The transfer process can take up to six weeks – ask your new supplier for progress reports, and pay your existing provider any outstanding sums- since it has the power to block the transfer.

Remember - direct sales people can be very persuasive so be careful. Never commit yourself until you are totally satisfied that you have all the information you need and never sign a document until you have read the small print.