One in ten tenants have been illegally stopped by their landlords or agents from switching energy suppliers.
Research from uSwitch has shown that 3% of private tenants have been told they cannot switch because of restrictions on their rental contract, while 7% were expressly told by their landlord that they were not allowed to do so.
In fact, while a rental contract is allowed to stipulate that a tenant should ask a landlord before switching an energy supplier, permission cannot be refused.
According to uSwitch, just 38% of private tenants have switched to a cheaper supplier, whilst one third are unaware of their right to switch, and one third see no point in switching as they would not be living there long-term.
This, says uSwitch, is despite potential annual savings of up to £420.
Some tenants are concerned about approaching their landlord about switching, with 22% saying that landlords ‘don’t want to be bothered by tenants’.
This attitude seems to stretch to energy efficiency too – 26% wouldn’t talk to their landlord about energy efficiency because they don’t think their landlord would be interested, and one in ten private tenants wouldn’t feel comfortable raising it with their landlord.
More than four in ten private tenants say that the home they are currently living in has little or no energy efficiency measures installed.
Ann Robinson, director of consumer policy at uSwitch, said: “With more and more people renting, it’s vital that people don’t feel that being a tenant means relinquishing the right to control their household bills.
“The fact is that if your name is on the bill you have the right to shop around for a better energy deal.
“If your rental contract says otherwise, then talk to your landlord or letting agent – it is in both parties’ interests for rented homes to be on a cost-effective tariff and as energy-efficient as possible.
“Now is also a good time for private landlords to look at energy efficiency.
“Energy suppliers have a pot of money to spend on making their customers’ homes energy efficient and only have until the end of this year to spend it in order to hit government targets.
“As a result, there are now a huge number of offers for insulation, ranging from the free to the heavily subsidised. Taking advantage of these now would benefit both landlords and tenants, as a minimum outlay will see lower energy bills and a more attractive, rentable home.”
Current schemes available include:
Warm Front
: Available across England only, Warm Front installs insulation and heating measures for people receiving certain disability or income-related benefits. The scheme is available for people who rent privately or own their own home.
Carbon Emissions Reduction Target (CERT):
The main energy suppliers (British Gas, E.ON, EDF Energy, RWE npower, Scottish Power and Scottish and Southern Energy) are providing free or low-cost energy efficiency measures, commonly loft and cavity wall insulation. All properties in Great Britain are potentially eligible for help under CERT, although the most vulnerable people (for example the elderly or people on low incomes) are given priority. Both home owners and tenants can apply, although tenants must have their landlords’ approval for work to begin.
Community Energy Saving Programme (CESP)
: The main energy suppliers (British Gas, E.ON, EDF Energy, RWE npower, Scottish Power and Scottish and Southern Energy) are providing free or low-cost energy efficiency measures, such as solid wall insulation, to homes in low income areas. Find out if your area is eligible by visiting http://tinyurl.com/9xw2ed3
Comments
As I understand it, it would be deemed an unfair clause in a Tenancy Agreement which trys to stop a tenant choosing the cheapest utility supplier. Some Landlords object to Tenants changing to water meters but they have the right to do so. Please be aware however that if a Tenant decides to opt for a pre-payment meter for their electricity and/or gas there will be a charge at the end of the tenancy to re-instate the supply back to an ordinary meter which could cost the Agent if the Landlord is moving back in and objects to having to pay for this!
I know of a number of agents in my local area that actually have this as a clause in their ASTs.
Telling a tnt they can not change suppliers and if they do then they will be charged for doing so, in some cases ive seen, as much as £100+VAT.
i agree with the comments, if a tenant is given the liability for the utilities then surely they have the right to choose the most economical for them...
This is in the best interest of the LL also, as if the tnt can choose a cheaper tarif, then there is less likelyhood of the tnt running up large bills.
my agency allows tnts to change the supplier, we dont ask them to change back when they vacate, we merely ask that they tell us who the current supplier is, so we can give the meter readings to the correct company.
as it is 99% possible that a new tnt would switch again anyway.
@ IO You have missed Ray's point. Pay attention will you he said no problem to switch as long as it goes back at the end of the term to the original one at outgoing tenant's cost.
Quite right tenants should have the ability to change as sometimes they lock in to an agreement with a supplier and want to capitalise on that. So where is the problem? Look at it like painting some walls a different colour. No problem as long as it is back to how it was at the beginning. Tenants rarely agree and Ray you are spot on with this.
You miss the point Ray, which is the consumer (tenant's) right to switch whether the Landlord likes it or not.
Even allowing for the general competence level of the average tenant presumably they would not switch to a more expensive bill. So logically the LL should be happy to stick with it especially if the next occupier is a tenant and not him.
But the right to switch is a legal right - so the tenant cannot actually be forced to pay any costs for reverting back at the end of the tenancy no matter what the tenancy agreement (or agent or Landlord) might say.
"This attitude seems to stretch to energy efficiency too – 26% wouldn’t talk to their landlord about energy efficiency because they don’t think their landlord would be interested...."
Here is the interesting comment though. When tenants get the right to demand that Green Deal flagged improvements on an EPC cannot be resisted by a landlord hopefully they will start talking to each other!!
" ....Research from uSwitch...."
Another vested interest organisation submitting its own interpretation. Most landlords would not object to a change, providing the Tenant restored the original at their own cost. Perfectly reasonable - but they rarely agree?