The Elderly Need Help With Switching Energy

With energy costs and heating bills rising, it’s important to change energy suppliers. Older people are especially at risk. They often live on set incomes and find it hard to deal with higher electricity and gas prices. Even though switching can help, many seniors avoid it. They may feel scared, confused, or worried about the change. Family, friends, and local councils can help in this situation.

Why Elderly Consumers Struggle to Switch Energy Suppliers

Switching energy suppliers can feel overwhelming for older people. Many do not feel comfortable with technology or do not have the internet. They may worry about losing their energy supply or encountering extra charges, like exit fees. Some may also find it hard to understand how switching works. Because of this, many stay on standard variable tariffs, which are often the costliest choices available.

Ofgem reports that 88% of energy customers did not change suppliers in the past year. Older customers are the least likely to make a switch. A study found that one million elderly customers are getting poor service from energy companies. Many of them are paying more than they should. This issue is important, especially with cold weather approaching. It means higher heating costs and more energy usage.

Key Facts:

• Just 12% of energy customers changed suppliers in the last year.
• A million elderly customers get bad service from energy companies.
• Elderly customers are 50% less likely to change suppliers than younger customers.

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The Importance of Supporting Elderly Consumers

Family members, friends, and trained advisors can help elderly people switch energy suppliers. Their help is very important for several reasons:

• Better Energy Deals: Many older people stay on old plans with their current supplier. They are missing out on savings by not switching to a new energy supplier. A switch could save them about £200 each year. Some might even save up to £300 per year.
• Warm Home Discount Scheme: Older individuals who qualify can apply for the Warm Home Discount. This gives them a one-time discount of £150 on their electricity bill. This scheme helps those who use prepayment meters or are in low-income households. In the winter of 2021/2022, over 2.2 million homes benefited.
• Fuel Vouchers: People using a gas card or electricity key can get fuel vouchers from places like Citizens Advice and local food banks. These vouchers help during winter when heating costs are high. In 2021, over 500,000 vouchers were given to families in need.
• Energy Saving Advice: The Energy Saving Trust and Citizens Advice Consumer Service provide tips for saving energy. They suggest switching to a smart meter for accurate readings or improving home insulation to use less energy overall. These steps can help save up to 25% on energy bills.

Key Facts:

• You can save an average of £200 a year by switching suppliers.
• In 2021/2022, more than 2.2 million households gained from the Warm Home Discount Scheme.
• In 2021, 500,000 fuel vouchers were given to households in need.
• Energy-saving measures can lower bills by as much as 25%.

How the Energy Switching Process Works for the Elderly

The way to change suppliers is simple. However, many older people might feel confused. Here is a clear explanation of how it works and ways to help older individuals with it:

1. Find a New Tariff: Check a comparison website to see available energy deals. It's smart to look for tariffs that allow paper billing. This option is better for older customers. Many new tariffs have lower rates than the standard variable ones. On average, people can find tariffs that are 10-15% cheaper than what they pay now.
2. Switch to a New Supplier: After choosing a new supplier, they will take care of most parts of the switch. The old supplier and the new supplier work together to keep your service running smoothly. Usually, the whole process takes 21 days or less.
3. Meter Readings and Final Bill: You need to send a meter reading to both the old and new suppliers. The old supplier will send a final bill within six weeks. Any credit you owe will be refunded within 14 days. In 2021, 98% of final bills were given within six weeks.
4. Direct Debit Setup: If you are okay with technology, setting up a direct debit can help you spread out the cost of energy over the year. This often leads to lower tariffs. On average, direct debit customers save 7% compared to other ways to pay.
5. Extra Help for Vulnerable Customers: Some energy suppliers give special services to vulnerable customers. This includes priority help during power cuts or text message reminders for billing. As of 2022, over 6 million customers were signed up for priority services with their suppliers.

Key Facts:

• New tariffs might be 10-15% lower than what we pay now.
• The switching process usually takes 21 days or less.
• In 2021, 98% of final bills were issued within six weeks.
• Customers who use direct debit save about 7% on their bills.
• More than 6 million customers signed up for priority services.

Legal Protections and Support for the Elderly

The elderly have the right to the same protections as everyone else when they change energy suppliers. Ofgem rules make sure that:

• You cannot charge exit fees in the 49 days before a contract ends.
• After signing a new contract, customers have 14 days to cancel the switch without facing any penalties.
• Older customers with prepayment meters can still switch to a new supplier. If they have a debt under £500, that debt will go to the new supplier.

Citizens Advice also helps vulnerable customers. They assist them with the switching process and help solve any complaints about energy companies. Ofgem reports that complaints about switching went up by 20% in 2022. A lot of these complaints came from older customers who have trouble with online accounts or getting confused by different rates.

Key Facts:

• You will not have to pay any exit fees within 49 days after your contract ends.
• There is a 14-day cooling-off period for all new contracts.
• Customers with a prepayment meter can switch even if they have debts up to £500.
• In 2022, complaints about switching increased by 20%.

Challenges Faced by the Elderly in Cold Weather

As winter comes, heating is very important for older people. They can easily feel the health effects of cold homes. Unfortunately, many seniors do not heat their homes enough. They worry about high energy bills. Local councils and support programs, like the Warm Home Discount, are very helpful in providing assistance.

In Northern Ireland, Scotland, and Wales, there are support systems to help older people with their energy bills. A good example is the Warm Homes Scheme in Northern Ireland. This program gives money to help with insulation and heating upgrades. These improvements are designed to lower energy costs. In 2021, this scheme helped more than 33,000 homes make their energy use better.

Key Facts:

• Cold homes cause 25,000 extra winter deaths in the UK each year.
• The Warm Homes Scheme in Northern Ireland helped 33,000 families in 2021.
• Scotland's Warmer Homes Scotland scheme has supported over 20,000 families since 2015.

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How to Support the Elderly with Energy Switching

Family members and friends can help older relatives in several ways, such as:

• Helping with Price Comparisons: It can be hard for older people to use price comparison sites. Helping them find the best energy deal can lower their energy costs. People who use these sites usually find deals that are 20% cheaper than what they pay now.
• Setting Up Direct Debit: If someone struggles to manage bills, setting up direct debit payments can help. This spreads out costs and can even lower rates. Those who pay by direct debit save around £76 each year compared to other payment ways.
• Contacting Suppliers on Their Behalf: Many elderly individuals feel uneasy about long phone calls or chats online. A family member can call suppliers to help switch their services. This can make the switching time shorter by 50%.
• Applying for Support Schemes: Help older relatives apply for assistance like the Warm Home Discount or the Winter Fuel Payment. In 2021/2022, about 11.2 million pensioners got the Winter Fuel Payment.
• Energy Efficiency Measures: Assist them with simple ways to save energy, like putting in LED bulbs or protecting windows and doors from drafts. These steps can help save up to £200 a year on energy bills.

Key Facts:

• Price comparison sites can help you find deals that are 20% cheaper than what you pay now.
• Customers who use direct debit save about £76 every year.
• Getting help from family can cut your switching time by up to 50%.
• In 2021/2022, 11.2 million pensioners received the Winter Fuel Payment.
• Easy energy-saving steps can save you up to £200 a year.

FAQs About Helping the Elderly Switch Energy Suppliers