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Utility Services
In recent years, the market for the supply of gas and electricity to consumers has been opened up. There are now a number of new suppliers in the market who will give you the opportunity to switch from your current supplier, approaching you through advertising, direct mail, telephone or doorstep selling. You do not have to change your existing supplier. If you do decide to change, however, do not rush into signing a new contract. It always pays to shop around for the best deal and look for other offers.
The contract you sign with a new supplier is legally binding. It will contain many terms and conditions relating to such matters as methods of repayment, cancellation periods and the duration of the contract. Make sure that you read the small print carefully and are aware of your cancellation rights if applicable. 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.
Some companies offer packages to supply you with both gas and electricity. Remember that you may be able to obtain the services cheaper from different suppliers. If you decide to sign a dual fuel contract, make sure that you know how much you will be paying for each service and when you will be billed.
Recent figures show that almost 2.5 million energy accounts are currently in debt, with people owing an average of £150. In 2003, 17,000 UK homes had their energy supply disconnected over debts as low as £50.
If you are finding it difficult to keep up with payments, you should first contact your supplier to discuss methods of repayment. Your supplier is obliged to offer a range of debt repayment options and must also take into account your circumstances and ability to pay. Companies should be willing to set up a payment plan for debt that suits you, even if you are under threat of disconnection. Methods of repayment include:
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Fuel Direct, a scheme where energy payments are made direct from state benefits. |
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Regular payment plans allowing you to pay weekly, fortnightly or monthly. |
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Prepayment meters - although this tends to be an expensive option. |
There are several organisations that can help if you find yourself in debt. Your local Citizens Advice Bureau can help with money management advice and any grants and loans that you may be entitled to. If you are unhappy with your supplier over a debt or a repayment plan, contact Energywatch.
If you are thinking of changing your electricity supplier, make sure that you find out how you will be charged for your supply. Some suppliers may make a fixed standing charge and then a unit charge for the amount of electricity used; others may not make a standing charge, but charge a higher unit price. Different charges may apply to different periods during the day and sometimes cheaper prices are offered for particular payment methods, for example, if you pay by direct debit.
You should also find out what service standards your prospective supplier is offering regarding repairs and extra help for older or disabled customers. It is also important to find out about the supplier's policy regarding debt and disconnection.
All electricity suppliers must have a licence from the Office of Gas and Electricity Markets (OFGEM). One of the licence conditions is that an electricity supplier must produce codes of practice on:
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Complaints procedures |
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Payment of bills, arrangements for dealing with arrears and prepayment meters |
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Site access procedures |
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Advice on energy efficiency |
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Services for older, disabled and chronically sick people. |
Until 1996, all domestic gas users had their gas supplied by British Gas. Since then, competition has been introduced and you can now choose your supplier.
As with electricity suppliers (see above), gas suppliers are licensed by OFGEM and must conform to the same licence conditions.
In addition, anyone who installs or services gas equipment must register with the Council for Registered Gas Installers (CORGI), an independent organisation which promotes gas safety. CORGI ensures that the Gas Safety Regulations and the British Standard Codes of Practice are met. It does not prosecute firms itself but refers the case to the Health and Safety Executive. Contact CORGI if you wish to complain about a gas installer, or want details of CORGI registered gas installers.
Your water bill may include the following:
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A standing charge |
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A charge for water, based on a meter reading or another charging method |
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A charge for sewerage. If your sewerage service is provided by a different company, you may receive a separate sewerage bill. |
Bills are usually sent once or twice a year, depending on the company’s practice. If the water charge is on an unmeasured basis, the bill will be for the forthcoming billing period. If the water charge is a measured charge the bill will be for the preceding billing period.
Some people are entitled to help with the costs of their water supply, e.g. people with certain medical conditions, or with 3 or more children under 16 who are receiving a qualifying benefit. They may benefit from a bill calculated as an average charge for domestic customers of that company rather than on their actual measured use of water.
All companies have provisions in place to help people who have difficulty paying their bills, for example, budget schemes.
OFWAT (the Office of Water Services) is responsible for making sure that the regulated water and sewerage companies in England and Wales give you a good-quality, efficient service at a fair price. It is a government department led by the Director-General of Water Services.
Consumer Council for Water
represents the interests of customers regarding price, service
and value for money; they also investigate complaints from customers about their water
company in England and Wales.
It is now possible to choose between a range of phone service providers for phone lines and equipment providers for telephone handsets, faxes and switchboards. As well as BT, phone service providers now include NTL (incorporating Cable and Wireless plc) and Energis (for business customers only), and various cable phone service companies.
Before choosing a phone service provider, find out what phone services are available and how much they will cost - for example, the cost, including rental of equipment, line and call charges and call facilities such as call waiting.
It may also be worth finding out whether cheaper rates are offered for particular payment methods, such as payment by direct debit.
what standards the phone service providers offer, for example, standards for repairs, or extra help for older or disabled customers.
Each phone service provider has its own policy on debt and disconnections and it is vital that you refer to the company's Code of Practice.
OFCOM is a government organisation set up to regulate telecommunications in the UK. It has various roles including monitoring the activity of licensed phone service providers and promoting competition between them. OFCOM can also look into or take up complaints by individuals about any aspect of phone service providers. It cannot help negotiate reduced or deferred payment of a bill.
Energywatch (the gas and electricity consumer council) is an independent organisation which represents and protects the interests of gas and electricity consumers.
The Citizens Advice Bureau gives impartial advice and information on all consumer matters.
OFGEM (the Office of Gas and Electricity Markets) is the official Government regulator for the energy industry.
OFWAT (the Office of Water Services) is a government department led by the Director-General of Water Services.
Consumer Council for Water
represents the interests of customers of water companies.
The Save Energy website offers advice on saving energy in the home.
OFCOM is a government organisation that regulates telecommunications companies.
Visit UKOrbit's Consumer & Advice Centre for further help and information.
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