Which? urges consumers to read energy contract terms

According to a recent survey poll conducted by Which? Switch, around 50 per cent of energy consumers do not bother to check contract terms when shifting power suppliers, making them more prone to paying penalty fees only stated in the small print.

When asked whether they tried to examine the conditions found in their power contracts, approximately half of the 2,000 respondents admitted that they had not attempted to read the agreement terms.

Which? Switch warns consumers planning to shift energy providers to understand all conditions to make sure that they are getting the best deals and to avoid additional fines, like service termination fees. The online switching firm also advises customers to look out for extra charges for late bill payments or meter fittings. For example, Scottish and Southern Energy currently charges £75 for disconnecting a dual tariff before the end of 2009.

Poonam Lolay, a customer of Which? Switch, informed that she recently changed her energy provider and made an annual saving of £120. But, it was only after when Poonam read the contract terms knew that she entered into a 12-month contract, which includes a huge termination fee if the customer switches provider within the first year.

Which? Switch however states that not all information found in the small print is considered as bad news. The firm informs that energy companies also offer extras, such as rebates, charity donations and free boiler parts. On the other hand, Which? Switch urges energy regulators, like Ofgem, to provide simpler energy bills that include a summary box to help consumers quickly determine the key elements of a tariff.