Energy switching misconceptions such as renters being told they are not allowed to choose their energy supplier have been branded “discouraging” by Energy UK.
The trade body has responded to research by auto-switching service Migrate, which has highlighted the extent to which those who rent do not make use of the switching process.
Migrate claims that with 32 per cent of renters having never switched supplier they are missing out on a collective saving of £453 million each year.
The figures are based on 4.5 million households in the private rental sector with customers saving an average of £315 a year if they make a switch.
Out of those who had not switched, 67 per cent were not aware that they were able to.
The study also discovered that 9 per cent of private renters had been wrongly told by their landlord or letting agency that they were not allowed to switch provider.
As well as this, 10 per cent reported that they were told they could not have a smart meter installed.
This misinformation means that these renters are collectively paying £41 million more in energy bills than they may need to if they were getting the best deal available, according to Migrate.
Aside from being unaware of switching, or being told that they could not, 53 per cent reported that they did not switch because they were too busy to actively partake in the process. While 44 per cent said that they did not know how to go about switching and 19 per cent felt that switching was not worth the effort.
Under the law, a tenant who is responsible for the utility bill and pays their energy supplier directly has every right to switch supplier, regardless of landlord or letting agency preferences.
Last month saw a growing number of UK energy customers switching suppliers, however this has led to an increase in the number of complaints about switching to the Energy Ombudsman.
George Chalmers, Migrate chief executive, said: “Our research has found a huge amount of misconceptions among renters when it comes their energy bills.
“However, perhaps the most shocking was that nearly one in ten tenants said that they had been specifically told by their landlord or letting agent that they were not allowed to switch – which is totally untrue.”
He added: “With more people renting than ever before, it’s vital that tenants know their rights and actively engage with their energy bills, and totally unacceptable that some are allegedly being misled.”
An Energy UK spokesperson commented: “It is discouraging that there are still many misconceptions around switching including that renters are not allowed to choose their energy supplier but it is good to see increasing numbers of customers continuing to switch in search of a better deal – last month over 600,000 customers moved to a new supplier, 29 per cent up on March 2018.
“The industry set up the energy switch guarantee to provide extra certainty to customers that switching will be simple, speedy and safe so consumers should get in touch with their supplier, or shop around, to check they are on the best deal for them.
“It is also important to remember that the best way for consumers to keep their energy bills down in the long run is by ensuring homes are energy efficient, which the committee on climate change estimate has saved the typical UK household around £290 a year since 2008.”