The success of so many of the things we are doing to help people with energy bills and reduce consumption depends on building consumer trust.
Trust in companies both big and small, trust in consumer groups, trust in service providers, trust in the Government and its agencies. Trust is about actively engaging with consumers, listening to what works and what doesn’t. It is about providing a good standard of service. It is about openness, transparency and honesty. Trust can make or break a company in a rough and tough competitive market, so it’s in the interest of those operating in our energy industry that trust is built.
We know that government has a role to play, to lead by example. In the Green Deal we have built in some of the most rigorous consumer protection measures ever seen, from day one. The Green Deal sets robust standards where only accredited or authorised players may operate in the market. This, coupled with the right to consumer redress, creates a competitive market where the best and brightest installers and products will flourish. A market in which any cowboys will be flushed out.
Around £540m of additional support will be available each year under the Energy Companies Obligation (Eco) for households on a low income, or in low income areas, to help further with the costs of making their homes easier to keep warm. We have set up the Energy Saving Advice Service to assist consumers to work out what energy efficiency measures will best suit their needs, and how to access these schemes. The ESAS helpline (0300 123 1234) has provided advice to around 30,000 callers a month this winter.
Consumers need to see clearer and simpler energy tariffs too. This is why the Prime Minister made a personal commitment to help get energy bills down, which Ofgem has taken forward. Reducing the bamboozling array of tariffs on offer and making energy bills simpler so people are better able to switch tariffs is fundamental to building consumer trust. Ofgem’s reforms will achieve our aim of ensuring that consumers get their supplier’s lowest standard variable rate unless they choose otherwise. We have taken additional powers in the Energy Bill to ensure this happens even if Ofgem’s efforts are delayed or frustrated.
It’s vital that we are straight with consumers about what contributes to their energy bills. We are the first government to commit to publish the full detail of the impact of energy and climate change policies on bills, now and in the decades ahead. This shows that rising wholesale gas prices are the principal driver of rising energy prices, and why moving towards a more low-carbon future not only benefits our planet, but our pockets too. Energy suppliers also have a key role in clearly explaining the reasons for movements in energy prices to their customers.
For small-scale technologies like solar panels or mini wind-turbines, the Microgeneration Certification Scheme is in place to stop bad practice in its tracks. It works by approving installation companies against robust standards and requiring companies to sign up to a consumer code of practice to ensure consumer protection.
Ultimately, in the energy market, trust is a must. I want Government to continue to lead by example, but it is vital that the energy industry steps up to the plate too. The success of our shared ambitions depends on it.
Blog courtesy of: blog.decc.gov.uk
[author image=”https://www.installeronline.co.uk/wp-content/uploads/2013/03/gregbarkerblog.jpg” ]The Right Hon Gregory Barker is the Minister of State for Climate Change. Gregory Barker graduated in History, Economic History & Politics from London University in 1987 and has over ten years experience of working in the City of London. Gregory Barker was elected Conservative Member of Parliament for Bexhill and Battle in his native Sussex in June 2001. He served on the House of Commons Environmental Audit select committee between 2001 and 2005. In October 2008 he was promoted to Shadow Climate Change minister in the new Shadow Department of Energy and Climate Change. [/author]
