Switching energy supplier: Easier said than done?

Energy prices are soaring and the advice we're getting sounds simple: if you want to save money on your fuel bills, switch supplier. Energy Secretary Chris Huhne has recently been telling us all to switch, while the companies themselves have been telling us to do it for years.

Sounds simple enough, but is it really? The complaints we've received from energy customers at Watchdog suggest otherwise - Riz Lateef reports on five viewers' switching nightmares.

Nightmare 1: Cancellation Fees

Rod Attewell and Glyn Annell both decided to switch supplier after their fuel bills rocketed this summer.

Rod had been a British Gas customer but as they increased their prices by an average of 20% shortly after he joined them, he decided to switch to EDF energy. Glyn also switched to EDF, after she received a notification from her previous supplier, Scottish Power, that they were about to put their prices up.

Both notified their previous suppliers that they were about to switch, but both got a nasty shock - switching was going to cost them.

Rod was told by British Gas that he would be charged £60, while Glyn only realised she'd been charged £20 by Scottish Power after she insisted they send her an itemised bill.

Both Rod and Glyn complained and were within their rights to do so. On both these occasions, the suppliers were in breach of rules drawn up by the Energy regulator Ofgem. The Ofgem regulations mean that consumers who are affected by a price rise have thirty days to inform their supplier that they want to leave, and if a termination fee applies to their tariff they don't have to pay it.

And there's no excuse for these companies getting it wrong, because Ofgem reminded them all of the rules just a few months ago.

Nightmare 2: Price Freezes

Paul Millington decided to leave British Gas for EDF last winter. He was told that he wouldn't incur any of the price rises, but when he got his final bill he found that the prices rises had in fact been applied.

And this shouldn't have happened - because when he decided to switch his existing payment rate should have been frozen. When Paul complained, British Gas blamed a computer error, sent him a correct bill and offered him £25 in compensation.

However, when the bill arrived, British Gas had still applied the price rises, but this time, they'd offset the goodwill compensation amount of £25 against the increase - which he wasn't supposed to be paying anyway.

Nightmare 3: Delays

Lloyd Bonson, on the other hand, found his switch was mired in delays. He notified EDF of his intention to leave earlier this year.

But a series of computer errors means he's still on their system as an EDF customer. This means that his new, chosen supplier can't take him on, even after five months of trying.

All in all, Lloyd's found switching to be a frustrating annoying process, but it shouldn't have been because all the big energy suppliers signed up to an agreement called the 'Peace of Mind' guarantee.

This is a voluntary agreement set up to reassure customers that the process of switching is 'simple and hassle free' and, according to them, switching has never been so easy.

Nightmare 4: Double Billing

However, that's not the experience of Melissa Self who switched from Scottish Power to British Gas, last year.

Or so she thought, until Scottish Power - who she thought she'd left - wrote to her demanding five months' worth of payment. It turns out that British Gas had taken over another Scottish Power customer's supply by mistake, and Melissa had been billed for their gas.

British Gas has since refunded Melissa, allowing her to settle her outstanding bill with Scottish Power. However, Scottish Power had passed her details onto a debt collection agency, causing her concern that she'll be unfairly blacklisted.

So, although you can save money if you switch, based on these nightmare experiences, we have to wonder, is it really as easy to do as it is to say?

Please check out the DirectGov Home Energy page for more information: www.directgov.gov.uk/homeenergy

Ofgem's response

Ofgem's role is to ensure that the energy retail market is competitive. In March this year our investigation found that competition is being stifled by a combination of tariff complexity, poor supplier behaviour and a lack of transparency.

This is why we are proposing a package of radical reforms to make it easier for customers to pick out cheaper deals and switch. This includes paring down the number of standard tariffs suppliers can offer to just one for each of the three payment types (direct debit, pre-payment and standard credit where customers pay by cash or card).

For these standard tariffs all other complications like different tier prices and complex discount structures will be removed. So the lower the price the smaller the bill, with no exceptions. More information on our proposals for simplified tariffs is available here: http://www.ofgem.gov.uk/Media/FactSheets/Documents1/Simpler%20energy%20tariffs%20107.pdf

We also want to tackle concerns we have over supplier behaviour towards business customers and in November we will consult on detailed proposals for reforms for this sector of the market. Another reform we are proposing is that the big six suppliers auction up to 20% of their power generation output to improve transparency and make it easier for smaller players to get more of a foothold in the market.

In December further decisions on these proposals will be announced. Provided the industry get fully behind our reforms some of them could be in place next winter We also want to see more transparency in the accounts that each of the big six suppliers publish. In the New Year we will publish high level findings of an independent report into this and set out the next steps.

Suppliers have the responsibility of making sure the switching process runs smoothly. For most customers it does, but if problems occur it is down to suppliers to put them right. Customers have the right to complain to their supplier about any aspect of their energy bill, or the switching process. The complaint handling regulations state that suppliers have up to eight weeks to investigate a customer's complaint once they make it. If the supplier cannot resolve the complaint to the customer's satisfaction, they can take it to the Energy Ombudsman.

The Energy Ombudsman is an independent organisation which can investigate the customer's complaint and where appropriate award customers compensation if the supplier is at fault. More information about the Energy Ombudsman is available here: http://www.ombudsman-services.org/energy.html

If suppliers consistently fail to meet the complaint handling regulations we take strong action. In July we fined British Gas £2.5 million for breaching the regulations and we are still investigating Npower and EDF Energy on compliance with these rules.

Department of Energy and Climate Change

A spokesman for the Department of Energy and Climate Change said:

"Following Monday's energy consumer summit (see outcomes here: http://www.decc.gov.uk/en/content/cms/news/consumer_summi/consumer_summi.aspx), the Government, consumer groups, and energy suppliers are urging people to Check, Switch, and Insulate to Save - information and advice is available at www.directgov.gov.uk/homeenergy.

"According to Ofgem, only 15 per cent of households switched gas supplier last year and 17 per cent switched electricity supplier - down from 20 per cent (gas) and 19 per cent (electricity) in 2007, despite the fact that it is possible to save up to £200 from an annual dual fuel bill by shopping around for the lowest online rate.

"The Government supports Ofgem's work to simplify the range and complexity of tariffs, and is legislating to limit the time it takes to switch supplier to three weeks following the 'cooling off' period, with implementation of the EU Third Energy Package this autumn.

"In addition, work is underway led by BIS as part of the Government's Midata programme to cut the hassle out of switching, with a next generation online method of checking and changing to the best deal. To facilitate this, energy companies have agreed to give consumers access to their data in electronic format as part of the government Midata programme."

"The Government is also looking at giving Ofgem further powers, so that in addition to fining suppliers, they can make suppliers give redress to customers when things go wrong."

Energy UK

Christine McGourty, Director of Energy UK, said:

"Britain's competitive energy market has provided choice and innovation, with tens of thousands of people switching every week. For many people, the experience is a good one, but where things go wrong, companies will work hard to put them right. The industry is also working on ways to make tariffs easily comparable to help people make good choices when they switch. It is encouraging that Ofgem's own research found one of the main reasons for not switching was that customers were happy with their supplier.

This winter, energy companies are writing to eight million of their customers to remind them they can shop around and make sure they are on the best deal for them. This could be the cheapest deal on the market, a fixed deal that secures their prices for a set period, or even a deal that gives them free insulation or green energy. Customers should also look out for their Annual Energy Statement, another innovation that is providing people with better, clearer information to allow them to check they are on the right tariff and to help them switch.

In addition, Energy companies will be working with the Government this winter to contact vulnerable customers and encourage them to take advantage of free insulation that is available. Over 3.5 million people have already benefitted from free or discounted insulation, which can save huge amounts of money - not just this year but every year."

Scottish Power's response:

Regarding Mrs Annell:

A ScottishPower spokesperson said: "We would like to sincerely apologise to Mrs Annell. The cancellation charge applied to the gas account was done so entirely in error due to an internal mistake. The level of service Mrs Annell received when she contacted ScottishPower to discuss the charge is far below our expected standards, and we will address these issues. We will also ensure that Mrs Annell is compensated for the time spent rectifying the problem."

SCOTTISHPOWER GUARANTEES NO WINTER PRICE INCREASES

ScottishPower has given a Winter Price Guarantee that it will not increase its standard prices for gas and electricity over the winter months, extending until at least 1st April 2012. At a time of rising commodity costs, ScottishPower will absorb any potential increases in the wholesale markets during this period.

Beyond its Winter Price Guarantee, ScottishPower has also outlined a range of extra customer service initiatives to help customers over the winter period.

Tariff check:

ScottishPower will be writing to all customers who pay by cheque or cash to provide them with personalised quotes on how much they can save by switching to cheaper tariffs.

Insulation:

ScottishPower is undertaking a significant programme to extend insulation amongst its customers, especially those most vulnerable. This is being completed through identifying and targeting those in need and will be supported by developing close partnerships with Local Authorities.

Vulnerable customers:

During the winter ScottishPower, will proactively contact vulnerable customers to ensure they have all the help they require to keep their homes heated. These efforts will be boosted by the company's network of Community Liaison Officers who will be on hand to visit customer homes to offer direct assistance.

Flexible Payment Options:

ScottishPower will be introducing new flexible payment options including delaying debt repayment for vulnerable prepayment customers until after the winter - so all of the money they spend over the winter will be on energy and not on any existing debt.

Neil Clitheroe, CEO of ScottishPower Energy Retail, said:

"As winter approaches, we understand that these are difficult economic times and many people have concerns about their energy bills. Wholesale markets remain volatile, as events in Japan and in North Africa have shown this year. However, regardless of movements over the winter months, we are offering extra measures to protect our customers over this period, and we hope that our guarantee will offer peace of mind.

"We also want to ensure that our most vulnerable customers have a service that they can rely on, and we will be increasing the activity of our community teams and customer service teams to offer as much help and support as we possibly can.

"We are writing to customers providing individual quotes demonstrating how much they can save by switching to cheaper tariffs. We also urge any customers worried about their energy bills to contact us to ensure that they are on the best available tariff for their circumstances.

"We are looking forward to meeting the Government today and agreeing to the proposals set out by the summit. Our hope is also that we- the government, regulator, consumer groups and the industry can take a considered approach to energy policy that addresses issues on pricing in the context of regulatory uncertainty and volatile markets, and the need to address the significant investment challenge ahead".

British Gas' response:

Rod Attewell:

Mr Attewell notified us of his intention to leave British Gas within 30 days of our price announcement, and was not subject to higher rates or withdrawal fees. Unfortunately, there was an administrative error, which meant that one of the credits that should have been applied to his account was not. We have since issued a revised final bill and refunded the outstanding amount of £16.85 owing to Mr Attewell, and apologise for any inconvenience caused.

Paul Millington

Mr Millington advised us of his intention to leave and we began the necessary process to prepare for this. However, we did not receive notification from Mr Millington's chosen new supplier for six weeks, and he therefore remained as our customer during this time, and became subject to our higher rates when they took effect. As a gesture of goodwill, we have refunded to Mr Millington £25, the total increased rate he was charged.

Melissa Self

We apologise to Miss Self, as our service clearly fell short of the standard she should have received. The root causes of the problem were two simple errors when Miss Self's name was wrongly entered on our system, and we took over the wrong supply. We have now made all the necessary changes to ensure Miss Self's records are now accurate.

1.Energy summit

For the first time the energy industry, government, consumer groups and the regulator have come together and engaged in an honest conversation about the challenges facing us all.

Firstly, we've got to do all we can this winter to keep bills down - that's why British Gas is supporting the Government's campaign to check tariffs, switch where it makes sense, insulate and save.

But secondly, we need an honest conversation about the UK's energy future. The future of prices - and profits - and the future of investment. We all need to work together to deliver the secure, low carbon and competitive energy industry we desperately need."

2. Switching

The UK's energy market also has far higher switching rates than other retail sectors, such as banking and mobile phones. Energy industry data shows that around 100,000 people switch energy supplier each week.

We are committed to making switching tariffs as easy and hassle-free for our customers as possible.

Switching tariffs is one way to save money, although it's important that customers consider the full value of the package on offer - for example, British Gas is offering all its customers free loft and wall cavity insulation (worth at least £200 per home), together saving the average household more than £200 on their annual dual fuel bill.

E.ON's response:

We always ensure that information given to customers is timely, clear and fulfils all our obligations.

"In addition to the information we provide to customers, by getting in touch with us we can discuss with them their needs and requirements and provide the best help, advice and information possible. Day in, day out we're working hard to engage customers with their energy use and provide a range of tariffs to match the needs of different people, whether that means looking for the cheapest deal available or a tariff that offers extra benefits such as a free energy monitor.

"As our efforts to get the nation Energy Fit show, by taking a few simple steps and working with us, customers can take control of their bills and bring their energy use down. We'd urge everyone who hasn't already, to visit eonenergyfit.com to get tailored advice which will allow them to make positive changes right away."

EDF's response

"EDF Energy would like to apologise to Mr Bonson for any inconvenience caused by this matter.

We originally objected to the transfer of his energy supply as there was debt outstanding on the account, which was then settled. A system error then caused the second objection. We've apologised for this delay in transferring his supply and have offered £65 as a gesture of goodwill which Mr Bonson has accepted.

We receive hundreds of thousands of requests to transfer supply each year. A small percentage are objected to, for a variety of reasons, including debt outstanding on the account - the most common reason for objection. The vast majority of these are resolved very quickly, once the debt has been paid off.

The UK has one of the most competitive energy markets in Europe, with around 16% (Ofgem figures, 2010) of customers switching. Whilst figures over the last few years have shown a slight (one or two percentage point) decline in the numbers of customers switching, over recent months we have seen an increase in the number of customers moving to EDF Energy, largely due to our highly competitive fixed price products. Hundreds of thousands of customers have switched to our fixed products over the last couple of months.

We can confirm that customers on our previously available variable online tariffs will not have to pay a penalty to switch following on from our recent price change. However, they would need to inform us of their intention to switch before the price change date (in this case, 10 November) to ensure they keep their current rates. We've included text in the appendix which formed part of the price change letters sent to customers, which makes this clear.

With regard to tariffs, our customers have told us they want a choice in the type of products we offer. In March 2011, we simplified our tariff structure, following customer feedback, so that each tariff is made up of a basic standing charge reflecting fixed costs plus a unit charge. We were pleased to see this was one of the recommendations made by Ofgem last week in their reform proposals. Currently, we offer five tariffs on sale through all our channels, which fit into three categories; Standard (variable), Fixed, and Green.

These are;
• Standard (Variable) - a rolling contract with no fees, and a variable rate.
• Fix for 2012 - Fixed prices until the end of December 2012
• Price Protection 2013 + welcome bonus - Fixed until 31 March 2013
• Price Protection 2014 + welcome bonus - Fixed until 30 June 2014
• Green - (electricity only) - an equivalent amount of renewable energy is purchase to match the supply for users on this product

Following on from the recent Energy Summit, held between suppliers, the Government, Ofgem and other consumer bodies, we have confirmed that we will be writing to all our customers to make sure they are on the best tariff for them, as well as asking them to check that they are taking advantage of the all dual fuel and direct debit discounts available to them, and offering free insulation to all our customers. We'll be writing to all our customers over the coming weeks to tell them what they need to do to take advantage of this offer.

Appendix - text sent to customers

If you want to leave us, please let us know by 10 November 2011 and we will continue to apply your existing terms, conditions and prices. If you have outstanding charges on your account, we may stop your supply being transferred. If so, we will allow a further 30 working days, giving you time to settle your balance so your new supplier can re-apply to take over your supply.

Comment with regard to Ofgem's recent Electricity and Gas Market Report and Market Reform Proposals

"The profit figures in Ofgem's Electricity and Gas Market Report are not ones that we recognise. In fact, as shown in our official reporting to Ofgem, for the last two years we had a negative net margin on our residential supply business.

EDF Energy is committed to being fair to its customers. We were the last of the major suppliers to announce an increase in prices this summer, and unlike other suppliers we have still not implemented that change. Even when our new prices come into effect on November 10 we will have the cheapest average standard dual fuel prices of all the main suppliers. This follows on from our winter price freeze last year.

We plan to spend billions of pounds on the UK's energy infrastructure over the next few years, playing our part in keeping the lights on and tackling climate change in an affordable way. We have also recently invested in a new customer servicing system, which allows our customers to better manage their energy account with us.

We responded to Ofgem's Retail Market Review and we note that a number of our suggestions are included in today's proposals. We have already simplified our tariff structure along the lines suggested by Ofgem today, with a standing charge and single unit price for all electricity consumed.

We will review today's proposals in detail before responding further, and will work with Ofgem to ensure any changes are in the best interests of consumers.

We look forward to engaging further on this issue and are committed to being transparent and fair with our customers. We were the first of the major energy companies to say a Competition Commission inquiry may be necessary to establish greater trust between consumers and the energy industry."

NPOWER's response:

Does npower believe they have fulfilled the Peace of Mind Guarantee to their customer?

Yes and for more information please see http://www.energymadeclear.co.uk/#making-it-simple-to-switch this link is available through www.npower.com

Can npower explain why fewer consumers are switching?

Recent research shows that around 80,000 consumers switch every week, proving that the market is fluid and competitive. Along with this we need to remember the consumers who regularly switch tariff but not supplier, these individuals are not included in switching figures.

What does npower plan to do to encourage customers to switch, and to make the process easier?

We have a tariff guide that helps consumers research the tariff in detail before switching. The guide is available at npower.com/products. We have recently redeveloped this site to make it easier to navigate and understand. Further developments on our website will see a tool that customers can use to check their own energy use against that of similar households in their area. Along with the tariff guide, we will be changing our bills to signpost the ways in which customers can check out the best deals for them.

RWE npower's response to Ofgem's quarterly profit margin report

Responding to Ofgem's 12th analysis of Energy Companies' profit margins in the last three years, Volker Beckers, CEO RWE npower, said: "Ofgem's analysis shows energy companies are making just over £9 profit on every £100 we receive getting energy to your doorstep."

"Earlier this year, the industry was making just £1.50 on every £100; and between 2004 and 2009 Ofgem's own figures show that the energy industry was making a loss on the average customer."

"These are not the figures associated with an industry that is profiteering or uncompetitive, and despite this challenging financial climate, RWE still managed to invest over £1 Billion into new, more efficient energy infrastructure for the UK in each of the last three years.

RWE npower's response to the DECC Energy Summit

npower announces price freeze for Winter 2011/2 - Cold selling on the doorstep to cease
Speaking in advance of a major energy summit Volker Beckers, CEO of RWE npower, made a new commitment to npower customers for the forthcoming winter. 'I know people want some certainty on energy prices, so today I am announcing that we will fix the prices for all of our customers on standard residential tariffs for the coming winter period so that they can budget with confidence'

He continued: 'I am very aware that there have been significant increases in the cost of living. It's a global phenomenon affecting food prices, fuel prices and other household costs including energy prices. There are many fixed price deals around currently but most charge a premium or have exit fees, unlike our commitment for this winter. For those who want protection for two winters we have a new fixed tariff available at the same price as our standard tariff.'

Further changes regarding cold selling on the doorstep were also announced today. We have been reviewing our approach to doorstep selling through our direct labour force, consultation meetings have been held with representatives of our sales staff and we will cease cold selling on the doorstep through our internal teams on 30 November. Our arrangements in relation to doorstep selling with our third party direct marketing provider will also come to an end at the same time. So we will be stopping cold selling on the doorstep at the end of next month.

Commenting on the DECC Energy Summit Volker Beckers, CEO of RWE npower, said:

"Clear concise and transparent communication between energy suppliers and customers is vital to ensure they are on the best deal and take advantage of free energy saving measures. Although the recent Which? survey placed npower at the top when it came to communicating the cheapest tariffs to customers; today's summit reinforces the message that energy suppliers, government and customers should all redouble our efforts.

"npower has already announced that it will freeze standard residential prices over the winter and has made a commitment to end cold door-step selling by the end of November. In addition we already offer free insulation*, the Warm Home Discount and free energy efficiency advice.

"I would encourage any customer to call their energy supplier to ensure they are on the right tariff for them and to check on what insulation measures are available.

"As Britain stands at the cross-roads of its energy future; we all must ensure that customers are considered at every turn and that we sign-post our best offers and free energy efficiency advice."

SSE's response

We believe we are complying fully with the Peace of Mind Guarantee. It is also worth noting that all energy bills now carry a strapline reminding customers that they can switch suppliers.

The UK energy industry is one of the most competitive in Europe and SSE takes every possible step to ensure the switching process is seamless and as easy as possible for customers. In the event that the anything should go wrong in the switching process, SSE will introduce a mis-selling guarantee which means if it makes a mistake in the sales process, it will make good that mistake.

RESPONSE TO OFGEM'S 'SNAPSHOT ESTIMATE' OF NET MARGIN ON DOMESTIC SUPPLY

SSE does not recognise in any way Ofgem's 'snapshot estimate' that the net margin on supplying a dual fuel domestic customer is approximately £125.

The approach adopted by Ofgem in calculating this figure is entirely theoretical and does not reflect how a responsible energy supply business manages its energy procurement strategy in reality.

This is demonstrated in the way Ofgem's net margin estimate has varied so much during the last 12 months. In June 2011, Ofgem's number was £15, in March 2011 it was £75, in December 2010 it was £90 and in September 2010 it was £65.

The 'snapshot estimate' needs to be compared against SSE's Consolidated Segmental Statement for the last financial year, which reported a profit for supplying domestic customers of £266million, which equates to around £62 or 6% per dual fuel customer. SSE does not expect this margin to change significantly for the current financial year as a whole, although it has already said that its financial results for the first half will be 'substantially lower' than last year.

As part of its drive to build trust in energy supply, SSE has committed to publish on each customer's annual statement the cost breakdown of a typical customer's bill, including any profit.

WHOLESALE ELECTRICITY PRICE TRANSPARENCY

SSE is to introduce a new and transparent approach to the management of its electricity supply and demand requirements. This approach will see SSE phase in the auction of all of its electricity supply1 and purchase all of its electricity demand, in the day ahead market.

SSE aims to begin this approach by trading a proportion of its total electricity supply and demand by Friday 14 October 2011 - with the expectation that it will reach 25% during November. The volume of electricity transacted in this way will then be increased gradually over the next few months with the expectation that all of SSE's electricity supply and demand will be traded in the day ahead market by the end of its current financial year (subject to market conditions and costs).

There has been a perception that SSE currently trades only the difference between its generation and its electricity demand in the wholesale day ahead market. Moving to an approach where gross volumes are clearly being traded, effectively means that SSE will eliminate this perception and provide a new level of transparency.

By selling its total supply of electricity and buying its total electricity demand simultaneously in the day ahead auction, SSE will significantly improve the liquidity, depth and credibility of the market, and assist in the creation of a robust and tangible pricing index.

Currently the GB day ahead electricity market trades volumes of around 40 GWh per day - with a further 200GWh through brokered markets. These volumes compare unfavourably with markets such as Germany and Nordpool which clear between 500 and 750 GWh daily. While SSE and other companies have been seeking to improve liquidity in the wholesale electricity market, Ofgem has stated that more needs to be done to increase the traded volumes. SSE's average daily demand volume is around 165GWh, which means that its move to gross trading will transform the day ahead auction market.

SSE will continue to operate in the Forward market in the same way as it does now, including entering into long term contracts with independent generators and suppliers who require them.

SSE is the second largest electricity generator in the UK and last year generated over 47,500 GWh of electricity, which represents almost 15% of the UK electricity demand.

Alistair Phillips-Davies, SSE's Generation and Supply Director, said: "This commitment from SSE will significantly improve the liquidity in the wholesale electricity market and help to address one of the perceived barriers to entry into the electricity supply market. If other energy companies adopt a similar approach, this commitment could lead to a transformation in the wholesale electricity market in Great Britain.

"We believe this commitment represents the most significant change to the GB electricity market since the market arrangements were amended in 2005, to form the current market arrangements known as BETTA.

"Customers have demanded greater transparency around how we operate in the wholesale market. As well as improving liquidity, this approach will also improve the transparency of SSE's activity in the wholesale market."

HELP FOR ENERGY CUSTOMERS DURING THE WINTER

SSE is implementing a comprehensive plan for helping its customers with their energy bills. The plan has four core elements:

• giving financial help with energy bills through the winter and beyond to over 400,000 customers through the Warm Home Discount, the energyplus care schemes and other initiatives. This help will have a total value of £46m in 2011/12, compared with £28m in the previous year;
• providing payment arrangements that are tailored to the particular circumstances of at least 300,000 customers who may be experiencing hardship and having difficulty in paying their energy bills;
• making proactive calls to vulnerable customers in the final three months of 2011 to ensure they are aware of the support and advice available to them and to avoid situations such as self-disconnection by customers with pre-payment meters; and
• improving energy efficiency through the free or discounted installation of cavity loft insulation in 153,000 homes and of wall insulation in 147,000 homes (excluding DIY insulation) in 2011/12.

For the winter period (December to February), SSE will not disconnect the gas or electricity supply of any customer, unless there are issues of safety or criminality involved.

SSE has already committed that it will not implement another increase in the price of household electricity and gas until August 2012 at the earliest, if it has to.

More broadly, SSE is committed to working with the governments in Westminster, Edinburgh and Cardiff, and to practical partnerships with consumer bodies such as Citizens Advice and Consumer Focus to deliver other workable and substantive steps which actually help customers. It is also engaging with Professor John Hills' independent review of fuel poverty.

As part of its wider initiative to build trust in energy supply, SSE is also piloting an Annual Energy Review to ensure that customers are on the best tariff to suit their needs and to identify the options for other measures such as improved energy efficiency. It intends to offer every customer an Annual Energy Review, starting in 2012.

Richard Westoby, SSE's Director of Energy Demand, said:

"Using electricity and gas more efficiently is the fastest and most cost effective way of keeping energy bills as low as possible for the long term. A lot of progress has been made in energy efficiency in recent years, and we want to maintain that momentum during the coming winter period and beyond."

Tony Keeling, Director of Customer Service, said:

"We have around 6,000 people working across the UK in Customer Service and Metering who are committed to doing everything they can to support customers during the winter months and throughout the rest of the year. Any customer with any worries about energy costs should get in touch with us, because we offer real and practical help."

BUILDING TRUST IN ENERGY RETAILING

SSE plc has today published a document setting out its initial plans and priorities to address retail energy customers' concerns relating to complexity, transparency and customer service. The implementation of a number of these measures is already underway and the whole programme should be completed during 2012.

Complexity
• SSE will introduce an 'APR-style' Energy Price Rate to help customers compare prices on a consistent basis; and
• SSE has terminated around 20% of its tariff arrangements in advance of a more radical approach it expects to unveil next year.

Transparency
• SSE will publish on a continuing basis an externally-sourced and objectively-produced tracker showing the movements in costs that make up an energy bill;
• SSE will set out on customers' Annual Energy Statement how their bill is made up, including any profit that is made; and
• SSE is introducing a new and transparent approach to the trading of its electricity generation and demand.*

Customer Service
• SSE will ensure all of its customers have the opportunity to access any tariff rate it offers;
• SSE will offer every customer an Annual Energy Review to make sure they're getting the most appropriate energy deal;
• SSE will introduce a mis-selling guarantee which means if it makes a mistake in the sales process, it will make good that mistake; and
• SSE will establish formally-constituted forums for customers in England, Scotland and Wales.

In addition to all of the above measures, SSE has re-iterated its commitment to ensuring its tariffs are properly cost-reflective and that no 'predatory pricing' takes place. In line with that, the differential between SSE's standard credit price and its standard online tariff is already, by some distance, the lowest among leading suppliers (as at 7 October 2011).

In July, SSE became the first of the leading energy suppliers to stop commission-based doorstep selling. It also confirmed it would add to its existing disclosure of complaints sent about it to the Energy Ombudsman, Consumer Focus and Consumer Direct by publishing a report on its complaints performance every quarter, and publish this on its customer websites.

SSE is also the only leading energy supplier to state that it will not implement another increase in the price of household electricity and gas, if it has to, before August 2012 at the earliest.

SSE supplies electricity and gas as Southern Electric in England, Scottish Hydro in Scotland, SWALEC in Wales, and through Atlantic via the internet. It has around nine million customers in the Great Britain market.

The full document covering SSE's proposals is available at www.sse.com/buildingtrust.

Ian Marchant, SSE's Chief Executive, presented and discussed these proposals as part of an event hosted by the Policy Exchange at 1.30pm in London today**

SSE Chief Executive Ian Marchant said: "In this decade and beyond, energy needs to be about three things: capacity; carbon and the customer. For very good reasons, much attention has focused on the vital issues of capacity and carbon. But, at the end of the day, it's the customer who needs secure, low carbon and affordable energy, and it's the customer who deserves the best possible deal.

"Energy companies do a huge amount of good work on a day-in, day-out basis. The reality is, however, that too many customers have little or no trust in their supplier or the sector. I want to change that, and at SSE we have a 'starter for 10' - ten early steps we want to take to build trust in us and what we do.

"Earlier this year, Ofgem said that in a period of rising prices, suppliers have to transform the way they deal with customers. Ofgem was right. Last month, the Secretary of State for Energy and Climate Change said a Competition Commission inquiry would cause two years of delay. He was right too - except the delay would probably be five years.

"That's far too long to wait. The time for action is now, and action is what this company, at least, is determined to take. We want to get on with delivering this plan and identifying and implementing the next set of ideas to build trust. Customers deserve no less."