1. New Markets - New Opportunities?

2. Energy Best Deal Scotland
Andrew Faulk
Consumer Focus Scotland

3. Overview What’s happening with energy prices and fuel poverty
How you can help your clients reduce costs
Switching tariff or supplier
Energy efficiency actions
Energy Assistance Package
Support for advisers on energy issues

4. ScottishPower profits rise 8% sparking customers' anger
25 February 2010 By Martin Flanagan
A RISE in ScottishPower's full-year profits to £1.3 billion was yesterday branded indefensible as people struggled to afford to heat their homes despite falling wholesale prices
ScottishPower says price hikes needed to fuel £15bn investment
16 June By Nathalie Thomas
ENERGY giant ScottishPower has mounted another defence of its steep price rises, saying it will have to spend £15 billion over the next nine years to help the UK government meet its "ambitious" carbon reduction targets

5. Energy prices, past and future
Ofgem’s Project Discovery shows price trends over time
Starting point: this graph is from Ofgem’s Project Discovery, published October 09.
It shows past trends in average household energy costs – effectively doubling 2002 – 2008 – and explores scenarios for future trends.
Scottish Government data on households in fuel poverty follows similar trends: although the energy efficiency of housing in Scotland is improving, it’s not happening fast enough to offset rising prices.
Of the 3 scenarios:
Lowest cost (red) is associated with low demand for energy, caused by continuing slow economic growth
Green line is the low carbon approach: clearly shows increased costs, but broadly same pattern of rising costs
Steep purple line is the result of not investing now, and rising fossil fuel prices driven by strong economic growth
While CF campaigns on a range of issues to keep bills as low as possible, the point about this is long term trends for consumers are clearly upwards under all scenarios.

6. Households in Fuel Poverty in Scotland
...and this is the effect of rising prices on the numbers of households in fuel poverty in Scotland. It shows that the effects of rising prices are outstripping the gains we’ve made in terms of improved energy efficiency

7. How can you help your clients reduce costs?
Find and change to the best tariff for their household
Adopt energy efficient behaviours
Install longer term energy efficiency measures
We’re going to look at each of these options...
While Consumer Focus and many other partners campaign for longer term solutions to these problems, we also work to make sure that short term solutions are available for consumers looking to cut their bills now.
Our view is that the first, and (we hope) easiest thing consumers can do is to make sure they are paying the best price for the energy they are using at the moment – but we recognise that, in the longer term, more emphasis on energy efficiency is needed too, and so we’ll come back to energy efficiency later.
As it says on the slide, our aim as an organisation is to make these actions as easy as possible for consumers....

8. Switching can seem complex...
What’s the best approach?
Can everyone switch?
Do you have to change suppliers?
Payment methods? fixed contracts?
Warm Home Discount?
Customer service and related benefits?
....but for most people, it is easy and works well
These are some of the barriers and issues identified by our research (the picture is a report we published last year), and by stakeholders.
I’m going to hand over now to let (XXXXX) take you through the answers to these questions, so you’re able to answer questions your clients might ask

9. Case Studies
Pensioner couple, never switched, Borders, standard tariffs. Moved to on-line dual fuel - £2,400 reduced to £1,800
Single adult, Edinburgh, electricity only, switched ‘a few years ago’ - £350 reduced to £320
North Edinburgh Trust, 3 out of 5 families saved over £100
Advisers attending training sessions – typically £100 - £200
Here are a few examples from focus group research we ran this summer – we offered participants the chance to see what deals were available to them as part of the research, and these case studies show the range of results.
Not surprisingly, people who have never switched and had higher bills, were found to be able to make the greatest saving. Our participants were also cautious about moving suppliers – as the statistical research shows is quite common – but were happy to go back to their suppliers using this information as a basis for discussion.
*ASK IF AUDIENCE MEMBERS HAVE SWITCHED AND WHAT THEIR EXPERIENCE WAS?*
If yes – reinforces positive message
If no / poor experience, ask why and move on to highlight issues we will deal with on the next slide

10. Can everyone switch? What if you don’t want to change supplier?
Most people can switch – but:
Some electric heating systems aren’t covered by other suppliers - Scottish Hydro Total Heat, Total Control, ScottishPower Comfort Plus
Some landlords prevent tenants from switching
Many people are happy with their current supplier – still possible to save by changing tariff or payment method
Nearly everyone can switch supplier the only exceptions being:
those who have electric storage heating and ‘Comfort Plus Control’ or ‘Total Heat, Total Control’ tariffs – these use a system called Dynamic Teleswitching for storage heaters. DTS provides extremely cheap electricity, but only at times when the power companies have surpluses. Other companies don’t have the infrastructure to support those systems.
Some landlords may also specify the energy company to be used, but may be open to the option of changing payment methods – similarly, if your clients want to stay with their existing company, it may be possible for them to save money by moving tariff or payment method, or to access a social tariff (we will come back to that later)

11. Warm Home Discount: Replaced Social Tariffs from April 2011
Social tariffs varied between companies. Targeted at fuel poor, but up to individual consumers to apply
WHD - uses ‘data matching’ to deliver an annual discount on electricity bills (£120 - £140) to a Core Group of households: initially, guarantee element of Pension Credit.
Later years will see it extended to those in receipt of guarantee and savings elements of Pension Credit.
Broader Group – households eligible for Cold Weather Payments or other criteria set by Ofgem.

12. Supplier Performance Supplier Rating SSE (Scottish Hydro) British Gas
E.On
EDF
ScottishPower
NPower

13. Consumer Focus Confidence Code
The Confidence Code shows websites which meet our standards of service:
The most effective way of switching is to use an accredit comparison website.
The Confidence Code mark shows sites which will give details of all available tariffs in your area.
The link should go live – but if it doesn’t, next few slides are screenshots showing next few stages

14. Energy Efficiency Actions
Using heating systems effectively – check timing settings
and thermostats
Using washing machine when full and on lower temperatures
Boiling only as much water as needed in the kettle
Drying clothes outside where possible
Closing curtains to reduce drafts
Installing low energy light bulbs
Turning appliances off when not in use
These are the easier measures which will help reduce bills. Most energy costs come from heating houses and heating water, so the more you can do to make sure those costs are minimised, the lower bills will be – but energy efficient light bulbs are still worth using to reduce electricity costs too (about 85% saving compared to the energy use of traditional light bulbs, and last longer too)

15. Scottish Government Energy Efficiency Programmes
Energy Assistance Package:
Energy Efficiency Advice open to everyone
Benefits check, referral for suppliers’ social tariff
Standard insulation measures – loft & cavity wall
Heating systems
Universal Home Insulation Scheme: door-to-door energy efficiency advice + free measures
Further services via local authorities or housing assns
Target vulnerable consumers (means tested)
Area based schemes
Hard to reach for consumers – door to door works

16. Finding Out More

17. Consumer Focus Support for advisers
Ask the Adviser service provides office hours help to frontline agency staff
On line Knowledge Base: advice leaflets, FAQ section, online access to expert advice
Select partners login option at ww.consumerfocus.org.uk
Username Advice_agency08
Password mUF2uS2e
Now you’re all experts on switching.... This last section before lunch will outline some other assistance available to you.

18. Consumer Focus Extra Help Unit
Team of 21, GB wide coverage & post NI.
Support and advice for 8,000 vulnerable consumers each year
Case work and negotiation with suppliers to resolve complaints and disconnections.
Can refer trends and issues to the regulator
£1.4m compensation & refunds for consumers in 1st two years

19. When things go wrong...
This slide shows how energy complaint services work in theory: the first contact is Consumer Direct, whose contact details are on every electricity and gas bill, and CD should be able to advise most consumers at that point, or to refer them to a specialist complaints team in each energy supplier.
The ombudsman deals with complaints which... (I’m not exactly sure about this!)
A small number of consumers in greatest need are referred from consumer direct to the Consumer Focus Extra Help Unit, which provides case work support for them

20. To take this further... On-line version of training available shortly
Further ½ day training sessions in the autumn - register via MAS
CFS staff will deliver bespoke training if you organise a session
What else might we do?

22. Questions?