Tenants losing money by not switching energy supplies

Landlords are being urged to help their tenants and help themselves when it comes to energy efficiency. A report by a consumer watchdog suggests that one in ten private tenants has been stopped by their landlords or letting agent from switching energy suppliers. Research shows that 3% of tenants were told they would not be able to switch because of restrictions on their rental contract, while a further 7% were expressly told by their landlord that they would not allow the tenant to switch suppliers.

The truth is that while the rental contract can stipulate that a tenant should ask the landlord before switching an energy supplier, it is illegal to refuse permission. The research also showed that just 33% of private tenants have switched to a cheaper supplier, whilst 34% were unaware of their right to switch, and 33% see no point in switching as they would not be living in the property long-term. This is despite potential annual savings of up to £420. Some private tenants are scared to approach their landlord about switching and this attitude is the same with energy efficiency where 26% are scared to approach their landlord.

Ann Robinson, director of consumer policy for the team that carried out the research, 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 a rental contract says otherwise, then talk to your landlord or letting agent as it is in both parties’ interests for rented homes to be on a cost-effective tariff and as energy-efficient as possible.”

Now is the perfect time for private landlords to look at the energy efficiency of the property that they protect with landlord insurance. All energy suppliers are investing a lot of money into making their customers’ homes energy efficient, and they only have until the end of 2012 to spend it in order to hit government targets. Because of this there are now a huge number of offers for insulation which in many cases is free or at least heavily subsidised. These would benefit both landlords and tenants, as a small outlay will see lower energy bills for tenants and a much more attractive, rentable home for the landlord.

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