New figures from Uswitch.com reveal that 230,000 renters haven’t switched because they say their tenancy agreement expressively forbids it, despite Ofgem stating that renters who are responsible for paying their energy bills are allowed to switch supplier.
Uswitch.com is calling for an “urgent review of misleading contract terms” to help tenants reduce their energy bills, and for the Competition and Markets Authority, within its ongoing investigation into the energy market, to look at ways of reducing confusing contract terms.
Over a third of landlords incorrectly believe that naming a ‘preferred supplier’ in rental agreements means switches can be barred.
The figures reveal that almost 40 per cent tenants also believe this to be the case.
A “significant proportion” of landlords are also are blaming a high turnover of tenants and even late rental payments as excuses to stop tenants switching to cheaper energy deals, Uswitch.com said.
Uswitch.com’s director of consumer policy Ann Robinson said: “Landlords who unfairly refuse tenants their right to switch are standing in the way of more affordable energy for millions of homes.
“Given that tenants are half as likely to switch as homeowners, any measures to break down the barriers and encourage them to take more control of their energy will reduce bills by millions.
“It’s time to stop landlords pulling the wool over renters’ eyes. We are calling for an urgent review of misleading terms in tenancy agreements, better training for landlords and more information for tenants about their rights. Energy switching should not be out of reach for the people who need it the most.”
Citizens Advice’s head of retail energy markets Gillian Cooper has also outlined the consumer body’s ideas for making it simpler for tenants to switch.