0:00:02 > 0:00:06We asked you to tell us who's left you feeling ripped off.
0:00:06 > 0:00:09I think this is very, very wrong, what they've done.
0:00:09 > 0:00:13The bank passed charges upon charges.
0:00:13 > 0:00:18Legally, it was right. Morally? That's where the doubt is.
0:00:18 > 0:00:24And you contacted us in your thousands by post, email, even stopping us in the street.
0:00:24 > 0:00:28And the message could not be clearer.
0:00:28 > 0:00:32- They just try to fob you off. - I'm not happy at all.
0:00:32 > 0:00:38- There's always that very small print. - We're being ripped off, big time.
0:00:38 > 0:00:43Whether it's a deliberate rip-off, a simple mistake or a catch in the small print,
0:00:43 > 0:00:48we'll find out why you're out of pocket and what you can do about it.
0:00:48 > 0:00:51Keep asking the questions.
0:00:51 > 0:00:53We do get results.
0:00:53 > 0:00:57Your stories, your money. This is Rip-Off Britain.
0:01:00 > 0:01:06Hello and welcome to Rip-Off Britain, the series that fights to sort out your complaints
0:01:06 > 0:01:12- and makes sure no one takes advantage of you or your money. - Too right! Today we tackle a subject
0:01:12 > 0:01:18that affects every one of us and can leave you feeling confused or ripped-off - energy bills!
0:01:18 > 0:01:26- The dreaded energy bills.- Exactly. It's on everybody's minds during the winter with these higher prices.
0:01:26 > 0:01:32We'll be looking at some of the mistakes energy companies make when it comes to your bills
0:01:32 > 0:01:36and exposing the hidden hikes you may not have spotted.
0:01:36 > 0:01:41Find out if your prices have gone up even more than you expected.
0:01:42 > 0:01:49Also coming up: when shopping around for cheaper energy prices proves to be a waste of energy.
0:01:49 > 0:01:55I just want a single, set monthly price. That's what I'm paying.
0:01:55 > 0:01:59I don't want to end up with a huge bill at the end of the year.
0:01:59 > 0:02:06Plus find out what happened when we met some of you face to face at the RipOff Britain pop-up shop.
0:02:06 > 0:02:10They sent me a bill for over £1,000 for one month.
0:02:10 > 0:02:14Time to get our hands dirty and start investigating.
0:02:14 > 0:02:19The huge rise in our energy bills couldn't have come at a worse time.
0:02:19 > 0:02:25It's estimated that up to a quarter of households in the UK are living in so-called fuel poverty
0:02:25 > 0:02:29when more than 10% of your total income goes on keeping warm.
0:02:29 > 0:02:33But what if the increases are only the tip of the iceberg?
0:02:33 > 0:02:40Trevor Watson worked out that the price rises in his bill were far higher than he'd read about.
0:02:40 > 0:02:42In fact, up to 40% higher.
0:02:42 > 0:02:45So we decided to investigate.
0:02:52 > 0:02:58With more cold weather on the way, the cost of keeping warm is on everyone's minds.
0:02:58 > 0:03:04In the past couple of years, the price of gas and electricity has risen by 22%,
0:03:04 > 0:03:10and we've heard from so many people concerned about this winter. All the big suppliers have price rises,
0:03:10 > 0:03:14but Trevor Watson's payments have already gone up.
0:03:14 > 0:03:18When I did the maths on mine, the huge increases,
0:03:18 > 0:03:25I thought, "This cannot be true. It's totally unacceptable." I was so angry. I could not believe it.
0:03:25 > 0:03:30Trevor gets his energy from Scottish Power after switching late last year.
0:03:30 > 0:03:35When he's not volunteering at a local National Trust orchard,
0:03:35 > 0:03:40this retired project manager knows how to root out a good deal.
0:03:40 > 0:03:45Towards the end of last year, I was looking for something cheaper.
0:03:45 > 0:03:48And I came across Scottish Power's
0:03:48 > 0:03:54online energy saver 2011. And that suited me.
0:03:54 > 0:03:58So I switched to that in December, 2010.
0:03:58 > 0:04:04And everything was fine until June this year when suddenly I saw these headlines
0:04:04 > 0:04:08and there were these horrendous price rises being proposed.
0:04:08 > 0:04:15In June, 2011, Scottish Power advertised an average price increase of 10% on electricity
0:04:15 > 0:04:17and 19% on gas.
0:04:17 > 0:04:24For the average dual fuel customer, that works out at £174 increase on the yearly bill,
0:04:24 > 0:04:31but thanks to the particular tariff that he was on, Trevor faced an even bigger price hike.
0:04:31 > 0:04:37I investigated my own tariff and I was absolutely horrified when I worked out
0:04:37 > 0:04:43that the increase they were proposing for my electricity was up to 25%
0:04:43 > 0:04:46and for gas was a whopping 61%.
0:04:46 > 0:04:4961%?! I just couldn't believe it.
0:04:52 > 0:04:58When I worked out the cost for myself on my own annual consumption,
0:04:58 > 0:05:04it worked out as a whopping 40% increase or about £420.
0:05:04 > 0:05:06That is just totally unsustainable.
0:05:07 > 0:05:13Trevor contacted the company to point out the discrepancy between the advertised price rises
0:05:13 > 0:05:17and what his own increase would be. They responded stating
0:05:17 > 0:05:23the reason for the larger than average increase was due to him being on such a competitive tariff.
0:05:23 > 0:05:27And that made me even more angry because
0:05:27 > 0:05:32they gave two reasons for my horrendous increase in prices.
0:05:32 > 0:05:36The first was that I was on one of their most competitive tariffs.
0:05:36 > 0:05:41That's a fact, not a reason to take away the competitive element.
0:05:41 > 0:05:47And the second one was that there was a price rise in November, 2010, which I missed.
0:05:47 > 0:05:52Totally irrelevant because I didn't even join Scottish Power until December.
0:05:55 > 0:06:02It makes me angry because I feel impotent that I'm just a single person trying to battle against
0:06:02 > 0:06:05these big giants who make billions of pounds of profit.
0:06:08 > 0:06:16Scottish Power told us their prices have risen because wholesale prices have risen significantly.
0:06:16 > 0:06:22The figures they announced were averages across Britain for all products and payment methods,
0:06:22 > 0:06:28but every customer then got an individual letter allowing them to cancel without any penalty.
0:06:28 > 0:06:32They say Trevor's tariff was a limited online offer
0:06:32 > 0:06:38and even though prices had to increase, it will still track 2% below standard direct debit prices.
0:06:38 > 0:06:45Energy price comparison experts say rather than settling for higher bills, consumers should think
0:06:45 > 0:06:49about switching supplier as there's still big money to be saved.
0:06:49 > 0:06:53The energy companies have made it incredibly complicated
0:06:53 > 0:06:58to understand what tariff you're on and how much energy you use
0:06:58 > 0:07:05and it's putting a lot of people off wanting to get involved. Don't give up. If you do, they will win
0:07:05 > 0:07:09and you will forego that 15% or 20% you'd cut off your bill.
0:07:09 > 0:07:15The good news is it's getting easier, the regulator's making them simplify their tariff structures.
0:07:15 > 0:07:19But is the British public getting the energy switching message?
0:07:19 > 0:07:24- Do you ever shop around for different tariffs?- Oh, yes.
0:07:24 > 0:07:27I do. I do all the time.
0:07:27 > 0:07:33- But are you aware of how many tariffs there are within each company?- No, I'm not.
0:07:33 > 0:07:37But I'd sooner stick to what I do.
0:07:37 > 0:07:44- So you might be able to save a bit of money?- Perhaps so, but I haven't got a computer or anything,
0:07:44 > 0:07:46so I just carry on the way I am.
0:07:46 > 0:07:49I've tried to get my tariff fixed,
0:07:49 > 0:07:55so I did a bit of online research just to get a feel for the prices before I committed to anything.
0:07:55 > 0:08:03- How long did you get it fixed for? - A year.- So you were ahead of the game.- Every penny counts!- Sure does.
0:08:03 > 0:08:10Trevor's now swapped his tariff for a fixed one, but he's worried prices may go up again.
0:08:10 > 0:08:16To me, there just seems to be something rotten in the energy industry and their prices.
0:08:16 > 0:08:22If nothing changes, there's nothing to stop them doing this over and over again.
0:08:22 > 0:08:26But he doesn't think any individual energy company is a bad apple.
0:08:26 > 0:08:31He'd like to see all their prices overhauled, root and branch.
0:08:33 > 0:08:37Well, we can't all work out our bills as well as Trevor,
0:08:37 > 0:08:41so if you'd like a bit of help, you can find advice on our website:
0:08:45 > 0:08:52Now when it comes to choosing your energy supplier, we always say shop around for the best deal.
0:08:52 > 0:08:58But the energy companies don't always make the process and tariffs clear, so it's easy to see
0:08:58 > 0:09:01why our next viewer, Jeannie Day, got caught out.
0:09:01 > 0:09:07When she listened to the salesman, she thought she'd got a better deal, but that's not how it turned out.
0:09:07 > 0:09:10One or two pieces, Rebecca?
0:09:10 > 0:09:16Jeannie Day spends her time looking after her three children and training to be a primary teacher.
0:09:16 > 0:09:23She keeps on top of her finances, so when she got a higher than expected bill from Scottish Power
0:09:23 > 0:09:27she looked into switching her supplier.
0:09:27 > 0:09:34I looked into the price comparison sites, found a good deal with Eon. I'm on the ball with my bills.
0:09:34 > 0:09:37I like to get a good bargain.
0:09:37 > 0:09:41I found Eon, who were a lot cheaper, and changed to them.
0:09:41 > 0:09:48But when Jeannie told Scottish Power that she was leaving them for a fixed rate with another provider,
0:09:48 > 0:09:54they gave her some very convincing reasons why she should stay with them and they seemed to promise
0:09:54 > 0:09:57that her bills would stay at a set rate every month.
0:09:57 > 0:10:04I kept asking him, "Is this the same as you are guaranteeing you are capping my direct debit?"
0:10:04 > 0:10:10He kept replying, "Yes, we'll cap your unit prices, you're not going to end up with a big bill."
0:10:10 > 0:10:16This is what I wanted to hear and he was telling me what I wanted to hear.
0:10:16 > 0:10:23So Jeannie agreed to switch back to Scottish Power because the deal they offered sounded so good.
0:10:23 > 0:10:30I thought he was fixing the direct debit, the energy price...
0:10:30 > 0:10:34To me, they were one and the same thing.
0:10:34 > 0:10:38My energy, if this is how much I'm using a year,
0:10:38 > 0:10:46then they can work out a figure of how much I should be paying and divide it by 12 months.
0:10:46 > 0:10:48That's what I thought I was getting.
0:10:50 > 0:10:55What she was actually getting wasn't what she thought,
0:10:55 > 0:11:00but with energy bills it's not easy to figure out what you've been charged.
0:11:00 > 0:11:06There is a formula on the back of your bill, but you have to be a very bright spark to work it out!
0:11:11 > 0:11:14It's hard enough to say, let alone understand,
0:11:14 > 0:11:19which is why Jeannie put her faith in the Scottish Power salesman
0:11:19 > 0:11:25and why she was horrified when her next bill was more than twice what she was expecting.
0:11:25 > 0:11:33I was so cross with them for lying to me by saying, "Come back to us. We'll give you a better price."
0:11:33 > 0:11:38And then, of course, it ended up being over double.
0:11:38 > 0:11:43So had Jeannie just misunderstood? Luckily, she thought of a way to check.
0:11:43 > 0:11:48I contacted Scottish Power and reminded them that they tape calls.
0:11:48 > 0:11:53Could they send me a copy of the recording of the call?
0:11:53 > 0:12:00Jeannie listened back to her conversation with Scottish Power. So can we and it's easy to see
0:12:00 > 0:12:03why Jeannie got the wrong idea.
0:12:20 > 0:12:24She tried to confirm whether her direct debit would stay the same.
0:12:44 > 0:12:50That was wrong because, in fact, the salesman couldn't see her usage
0:12:50 > 0:12:54and had no idea whether her direct debit would fluctuate or not.
0:12:54 > 0:12:59Jeannie was left firmly believing her payments wouldn't change
0:12:59 > 0:13:05and although she was given the right information at the end of the call, by then the damage had been done.
0:13:05 > 0:13:12When he was doing the terms and conditions with me, and said the units can fluctuate,
0:13:12 > 0:13:20I'd been on the phone a long time by then, listening with half an ear, and I did agree to them.
0:13:20 > 0:13:26After she'd complained, Scottish Power sent Jeannie a letter saying she had been mis-sold her tariff.
0:13:26 > 0:13:32She was able to cancel and take up the one she'd been talked out of with Eon,
0:13:32 > 0:13:38but when we contacted Scottish Power, they said it was unfortunate that the term mis-sold was used.
0:13:38 > 0:13:44They feel their agent did fully explain that payments wouldn't be fixed and Jeannie had agreed,
0:13:44 > 0:13:50but they admit that they've identified areas where this sale could have been improved
0:13:50 > 0:13:54and they could have done more to accurately estimate future payments.
0:13:54 > 0:13:59They don't believe Jeannie was misled, but are sorry for the problems she experienced.
0:13:59 > 0:14:04- At the moment it's on 71. - It's all very confusing.
0:14:04 > 0:14:08To help Jeannie keep a lid on her bills, we gave her a meter
0:14:08 > 0:14:14so she can see which appliances in her house are using the most power.
0:14:14 > 0:14:16Turn the oven on, 180.
0:14:16 > 0:14:18297.
0:14:18 > 0:14:23But she's frustrated by the energy she's wasted toing and froing between companies
0:14:23 > 0:14:27because of a mistake she thinks should never have happened.
0:14:27 > 0:14:33If he'd have told me how much it was going to be, I would never have gone back to them.
0:14:33 > 0:14:38I just didn't want to be paying that amount, which is why I'd left.
0:14:41 > 0:14:47According to Which, nearly half of us have been phoned by an energy company in the last 12 months.
0:14:47 > 0:14:52And 6 out of 10 people called said they felt pressured into switching.
0:14:52 > 0:14:58Louise Hanson from Which has some top tips on how to avoid the hard sell and to make sure
0:14:58 > 0:15:02that switching your energy supplier really pays off.
0:15:02 > 0:15:06The cheapest way to pay your bill is usually monthly direct debit.
0:15:06 > 0:15:12Pre-payment meters are often the most expensive, so phone your energy company to find out how to change.
0:15:13 > 0:15:19Dual fuel tariffs, where you pay the same company for your gas and electricity, can be cheaper
0:15:19 > 0:15:23and having an online tariff can also make a significant difference.
0:15:23 > 0:15:29Fixed tariffs will guarantee the price you pay for your energy, which may help you plan your bills,
0:15:29 > 0:15:34but often these are more expensive than non-fixed tariffs.
0:15:34 > 0:15:41Off-peak tariffs are good for people who use a lot of electricity at night, like for storage heating.
0:15:42 > 0:15:47Some fixed tariffs have significant exit fees, so do check the new deal you are interested in
0:15:47 > 0:15:50as it may not be worth switching.
0:15:51 > 0:15:56You may want to switch because you've seen attractive discounts offered,
0:15:56 > 0:16:02but check the terms and conditions because sometimes you only get the discount after a year.
0:16:04 > 0:16:08Another important thing to remember is to make sure bills are accurate.
0:16:08 > 0:16:12Take your own meter reading every other month and send it in.
0:16:12 > 0:16:16This means you're not paying more than you need to for your bills.
0:16:16 > 0:16:22There are hundreds of different energy tariffs on offer. If you're unhappy, vote with your feet.
0:16:22 > 0:16:28Go to a switching site, look around and choose a much better tariff for you.
0:16:28 > 0:16:35Coming up on Rip-Off Britain: when we asked you to get in touch and tell us about being ripped-off,
0:16:35 > 0:16:39we were overwhelmed with your letters, emails and phone calls.
0:16:39 > 0:16:47Plus our one-stop advice shop hears your gripes and dishes out invaluable advice from the experts.
0:16:47 > 0:16:51They sent me a bill for over £1,000 for one month.
0:16:53 > 0:16:55Now back to gas and electricity.
0:16:55 > 0:17:01The thing about our energy bills that's often the most baffling is what you actually should be paying.
0:17:01 > 0:17:08With a variety of pricing structures it's hardly surprising so many of us feel a bit in the dark.
0:17:08 > 0:17:14So we took some power to the people and we visited a village where the locals are working together
0:17:14 > 0:17:17to get the best deals.
0:17:17 > 0:17:21This is the village of Marshfield in South Gloucestershire.
0:17:21 > 0:17:28Like the rest of the country, its residents are trying to safely navigate through what can seem
0:17:28 > 0:17:34a very bewildering range of energy tariffs. They're keen to find ways to save money, bring bills down
0:17:34 > 0:17:37and not get ripped off.
0:17:37 > 0:17:42Prices go up, but it's not clear what you can do to reduce prices.
0:17:42 > 0:17:50But unlike most of the rest of us, the villagers here are thinking bigger than their individual costs.
0:17:50 > 0:17:54Karen Wilkinson is secretary of the local parish council and is keen
0:17:54 > 0:17:59to find ways for the community to produce energy for itself.
0:17:59 > 0:18:05We're thinking we'll have two strands. One is around how do we help people to reduce bills
0:18:05 > 0:18:10and how do we deal with reducing their overall usage of energy.
0:18:10 > 0:18:16And the other side is what can we do as a community to look at actually producing our own energy.
0:18:19 > 0:18:23But that won't be easy, so RipOff Britain lends a hand.
0:18:23 > 0:18:29We've sent in a team of experts to answer their energy questions and help the locals come up with
0:18:29 > 0:18:35the best options for the village as a whole. First, Paul Keightley.
0:18:37 > 0:18:42I'll point out what grants are available, why they should switch.
0:18:42 > 0:18:46Next, Caroline Joseph from Solar2Energy.
0:18:46 > 0:18:52I hope to get the message across to look very carefully before they spend money on solar.
0:18:52 > 0:18:56And, finally, Graham Ayling from the Energy Saving Trust.
0:18:56 > 0:19:03Today I'll be talking about what they can do together as a community to save energy, save on fuel bills.
0:19:03 > 0:19:09They're meeting as many locals as they can, starting with Brian, who used to work in utilities.
0:19:09 > 0:19:16But even with his wealth of experience, he still struggles to understand his energy bills.
0:19:16 > 0:19:23I have difficulty with making a level comparison of the prices and tariffs on offer.
0:19:23 > 0:19:27There's probably over 400 different tariffs available.
0:19:27 > 0:19:32There's a football tariff where you can get tickets for a match!
0:19:32 > 0:19:36Our experts are straight in with some advice.
0:19:36 > 0:19:41Really get into the habit of reading your own meter. If you look at your bill and see a meter reading
0:19:41 > 0:19:46with "est" afterwards, that means estimated. They've made that up.
0:19:46 > 0:19:50They've guessed how much you've used and that's no use to you.
0:19:50 > 0:19:57Everybody should look to switch their tariffs every two years or so, maybe more often than that.
0:19:57 > 0:20:02Switching your energy company is still the best way to bring down your bills.
0:20:02 > 0:20:08According to the website uSwitch, you can save as much as £458 a year
0:20:08 > 0:20:16just by switching energy supplier, but there are plenty of other ways to bring down your energy costs.
0:20:16 > 0:20:21Our experts tell Karen about the range of grants and energy-saving schemes around,
0:20:21 > 0:20:24which save money for a small investment.
0:20:24 > 0:20:30For starters, a government-backed scheme to help reduce how much energy we use.
0:20:30 > 0:20:35It's the Carbon Emissions Reduction Target or, for short, CERT.
0:20:35 > 0:20:41That requires energy suppliers to provide you with energy-saving products and services,
0:20:41 > 0:20:48including insulation. You can get that for free if you're over 70 or if you're on state benefits.
0:20:48 > 0:20:54For those who don't fit that criteria, you can get up to 70% off.
0:20:54 > 0:21:00- So do you go to your energy provider for that as the first port of call? - Yes.- Right.
0:21:00 > 0:21:04At the Energy Saving Trust, we have the Grants Information Database.
0:21:04 > 0:21:08It basically helps match you up with the best deal.
0:21:08 > 0:21:13You could also save by getting cavity wall or loft insulation
0:21:13 > 0:21:17and that could bring your bills down by as much as £175 a year.
0:21:19 > 0:21:23The villagers still have lots of questions for our experts,
0:21:23 > 0:21:27so Karen has arranged a big meeting at the local.
0:21:27 > 0:21:30One of the things they're keen to discuss is solar power.
0:21:30 > 0:21:36Though the government has announced plans to cut the amount you could save by investing in solar panels,
0:21:36 > 0:21:40over time you can still generate a decent return.
0:21:40 > 0:21:46As a community, we've been talking about buying a field and installing solar panels all over it.
0:21:46 > 0:21:50- Can you give us some advice? - You certainly can do that.
0:21:50 > 0:21:54If you wanted to look at it as an investment that had a return,
0:21:54 > 0:21:58then as a community, you could set up a limited company
0:21:58 > 0:22:03or a charitable organisation between you and run it in that way.
0:22:03 > 0:22:09There are some good examples around of communities working together to do this kind of thing.
0:22:09 > 0:22:16There's one in West Oxford where the community have set up a non-profit business that they own and run.
0:22:16 > 0:22:22All of the profit from those systems running and generating energy goes back into the business
0:22:22 > 0:22:25and depending on what the aims of that business are,
0:22:25 > 0:22:31the money goes back into the community or into more energy saving and renewable energy.
0:22:31 > 0:22:36After the meeting, does Karen think the residents have picked up enough tips
0:22:36 > 0:22:38to help them move in the right direction?
0:22:38 > 0:22:43I think the day went really well. People were able to ask individual questions.
0:22:43 > 0:22:50There are things that we can do as a community, we can work out, it's not too complex to try to tackle.
0:22:50 > 0:22:57We can try and make things work for all of us and not just for certain segments of the community,
0:22:57 > 0:23:00which has been our concern as a parish council.
0:23:03 > 0:23:06We're back at our pop-up shop in Manchester.
0:23:06 > 0:23:11It's been set up for a weekend of consumer advice from a selection of experts
0:23:11 > 0:23:14in fields varying from travel to utilities.
0:23:14 > 0:23:22And one of the things that stands out above almost everything else is the cost of utility bills.
0:23:22 > 0:23:26People feel really upset about the amount they're having to pay.
0:23:26 > 0:23:30They think in many cases the charges are quite outrageous.
0:23:30 > 0:23:35Our utilities expert Scott Byrom has had a very busy desk.
0:23:35 > 0:23:40They sent me a bill for over £1,000 for one month.
0:23:40 > 0:23:46- So this is a commercial property, business energy and they're billing you £1,000 a month?- A month, yes.
0:23:46 > 0:23:51So I rang up and complained, then they said, "We'll have a look at it."
0:23:51 > 0:23:57- They sent me another bill for £600 for the same time period. - Right. For one month?- Yes.
0:23:57 > 0:24:04'There are clearly a lot of utility mistakes going on out there, just as our next story shows.
0:24:04 > 0:24:08'Janet had been paying her energy bills by direct debit,
0:24:08 > 0:24:12'only to find she was still in for a shock.'
0:24:12 > 0:24:17In January 2010, I was surprised when I got a bill for £400,
0:24:17 > 0:24:23saying that I was in arrears of £400 and that they were going to take it out the following month.
0:24:23 > 0:24:27I thought, "Fair enough if I've not been paying enough."
0:24:27 > 0:24:29I did pay that off.
0:24:30 > 0:24:33They increased my direct debit payments,
0:24:33 > 0:24:37then in the summer they wrote to me saying I was now in credit.
0:24:37 > 0:24:43'Now Janet was in credit, the utility company cut her direct debit to £48 a month.'
0:24:43 > 0:24:49So consequently again, after this winter, I received a huge bill
0:24:49 > 0:24:53because we had such a harsh winter of £700 in arrears
0:24:53 > 0:24:57which they just want to take out the following month.
0:24:57 > 0:25:03This kind of thing shouldn't happen? They are at fault for handling her like that?
0:25:03 > 0:25:07The idea of a monthly direct debit is it's balanced throughout the year.
0:25:07 > 0:25:11I don't understand why they've changed your direct debit
0:25:11 > 0:25:13from £120 down to £48.
0:25:13 > 0:25:15That's a huge dip,
0:25:15 > 0:25:18especially when energy prices are increasing.
0:25:18 > 0:25:23The first thing I'd advise you do is make sure the meter is correct.
0:25:23 > 0:25:27Take a meter reading, leave it for a week and read what it is again.
0:25:27 > 0:25:33On average, at this time of year, for your electricity, it should be about nine kilowatt hours a day.
0:25:33 > 0:25:36For your gas, it should be about 45.
0:25:36 > 0:25:40That should then identify whether your meter is running correctly
0:25:40 > 0:25:45and indicates whether this debt that you're now in is yours to pay.
0:25:45 > 0:25:49The general advice is to be more proactive about your energy bill,
0:25:49 > 0:25:53so if you're on top of it, you're taking your own meter readings,
0:25:53 > 0:25:56you should be aware of how much you're paying,
0:25:56 > 0:26:00and hopefully, you'll avoid finding yourself £600 in debt.
0:26:00 > 0:26:05Janet, good advice there, I think, and with a bit of luck, it shouldn't happen again.
0:26:05 > 0:26:10- Let's hope not. Thanks for coming in. - Thank you very much.- Cheers. Bye.
0:26:13 > 0:26:20It's fairly commonplace these days if you have an insurance policy for your house or your car
0:26:20 > 0:26:26for it to be automatically renewed by the provider without you having to do anything at all,
0:26:26 > 0:26:30which is quite convenient for those of us who have busy lives,
0:26:30 > 0:26:35but here's a cautionary tale that shows just how vital it is for you not to let them seduce you
0:26:35 > 0:26:38into thinking they're doing you a favour,
0:26:38 > 0:26:44especially if they renew your policy with a letter that's marked "no action required",
0:26:44 > 0:26:49because after reading the small print, you might want to take some very firm action indeed.
0:26:52 > 0:26:55Barry Lennox became a widower two years ago.
0:26:55 > 0:27:01It was a steep learning curve for him to take on all of the chores that his wife had done previously.
0:27:01 > 0:27:04I now have to do all the work in the house,
0:27:04 > 0:27:08the washing, ironing, washing-up, cooking and the garden.
0:27:08 > 0:27:11I can understand the amount of work she did.
0:27:11 > 0:27:17One task he never worried about was the plumbing and he hoped that would still be the case
0:27:17 > 0:27:21because he had an insurance policy for ten years
0:27:21 > 0:27:25to cover any emergency repairs to pipework, drains and such like.
0:27:25 > 0:27:32I now like to have a policy such as the one that I had with HomeServe which gives me peace of mind.
0:27:32 > 0:27:36If anything goes wrong, I can get things sorted out quickly.
0:27:36 > 0:27:41With 7.5 million policies, HomeServe is one of the biggest home emergency insurance companies.
0:27:41 > 0:27:46They were recently in the news after suspending their entire sales force
0:27:46 > 0:27:49amid allegations of mis-selling.
0:27:49 > 0:27:54But Barry's issue with them is about something else entirely.
0:27:54 > 0:27:59He has only claimed on his HomeServe policy once and was very happy with the service,
0:27:59 > 0:28:03but then in March 2011, he got his renewal papers through.
0:28:03 > 0:28:10On the front, it said his policy had been upgraded and that he needed to take no action.
0:28:10 > 0:28:15It was only when I turned over and looked down to the back of the paper,
0:28:15 > 0:28:19I found that my direct debit appeared to be rather high.
0:28:19 > 0:28:24I went to my bank statements and checked and found that it had gone up by 33%.
0:28:24 > 0:28:30Worse still, the letter gave the date on which the first payment would have been taken
0:28:30 > 0:28:36from his account which, by the time Barry received it, had already passed.
0:28:36 > 0:28:40They had already taken off the first direct debit from my bank account
0:28:40 > 0:28:44which shocked me because I had had no prior notice
0:28:44 > 0:28:49that the premiums would be increased so I was rather annoyed about that.
0:28:49 > 0:28:53# It ain't what you do, it's the way that you do it... #
0:28:53 > 0:28:55Barry is no stranger to campaigning.
0:28:55 > 0:29:00A former resident of Zimbabwe, he's one of a group of ex-civil servants
0:29:00 > 0:29:06fighting for their pensions to be reinstated after they were stopped by President Mugabe's regime,
0:29:06 > 0:29:11so Barry didn't hesitate in taking action and contacted HomeServe to complain.
0:29:11 > 0:29:13# That's what gets results... #
0:29:13 > 0:29:18If you're going to emphasise something like an increase in benefits,
0:29:18 > 0:29:25you should also emphasise the fact that there's a cost to that and the premiums will increase accordingly.
0:29:25 > 0:29:31The annoying part about it was the complete absence of any reference to increased premiums.
0:29:31 > 0:29:35If that had happened, I wouldn't probably have been so annoyed.
0:29:35 > 0:29:40Barry cancelled the policy and put in a claim to get his money back
0:29:40 > 0:29:43under the Direct Debit Guarantee Scheme.
0:29:43 > 0:29:50That means that you write to your bank to dispute a payment and they must refund the amount to you.
0:29:50 > 0:29:55It's then down to the bank to get the money back from the company concerned.
0:29:55 > 0:30:00Settling Barry's claim took a lot longer than it had for them to take the money out,
0:30:00 > 0:30:04around four weeks, but in the end, he did get his money back.
0:30:04 > 0:30:08The guarantee scheme for direct debits has worked for me.
0:30:08 > 0:30:11I was very grateful to my bank and I thanked them for it.
0:30:11 > 0:30:15I was very disappointed they had to wait so long to get their money back
0:30:15 > 0:30:19HomeServe told us they're sorry for what happened
0:30:19 > 0:30:24and it's standard practice to inform customers of their policy renewal
0:30:24 > 0:30:29at least three weeks before the date of renewal with pricing on the front page.
0:30:29 > 0:30:35As Barry didn't receive that letter, they say their understanding is that it got lost in the post.
0:30:35 > 0:30:41They also told us that in future they'll be removing the "no action required" message
0:30:41 > 0:30:43from their renewal documents.
0:30:43 > 0:30:49But it's made Barry concerned that other policy holders may not notice
0:30:49 > 0:30:53when a company increases their direct debit payments.
0:30:53 > 0:30:56I think it must happen to a lot of people.
0:30:56 > 0:31:01Once they've got a direct debit, they're not going to go to the hassle of changing them.
0:31:01 > 0:31:07They'll take advantage of that and hopefully by putting the stamp on, "no action required",
0:31:07 > 0:31:09people will not take action.
0:31:10 > 0:31:16With more information on how to make sure that you're getting the best out of any insurance policies,
0:31:16 > 0:31:20here's David Cresswell from the Financial Ombudsman Service.
0:31:20 > 0:31:26If you're taking out home cover for the first time, before you rush to buy a new policy,
0:31:26 > 0:31:31just ask yourself whether or not you're actually already covered
0:31:31 > 0:31:37because you might find that your household insurance already covers you for your boiler or your pipework
0:31:37 > 0:31:39or if you've got a newish boiler,
0:31:39 > 0:31:43you might find that it's already got a warranty that will cover you.
0:31:45 > 0:31:49Be honest about why you're taking ou this cover.
0:31:49 > 0:31:51Insurance is all about real emergencies.
0:31:51 > 0:31:55It's not just because your boiler is getting elderly
0:31:55 > 0:31:59and you're worried about the fact you haven't maintained it very well.
0:31:59 > 0:32:03Insurance isn't going to get you a new boiler on the cheap.
0:32:03 > 0:32:06Remember, cheapest isn't always the best.
0:32:06 > 0:32:09Every policy is going to be very different
0:32:09 > 0:32:15and will have different benefits, largely depending on how much you're prepared to pay.
0:32:16 > 0:32:21When you come to renew the insurance cover at the end of the year,
0:32:21 > 0:32:23don't just do it automatically.
0:32:23 > 0:32:28Look at the paperwork you've been sent, see how much it's going to cost next year
0:32:28 > 0:32:32and compare that with what you paid in the previous year.
0:32:32 > 0:32:35It might have gone up and you might want to know why.
0:32:35 > 0:32:41That might be a trigger to shopping around and seeing if you could get a better deal.
0:32:41 > 0:32:46If the worst happens and you have to make a claim on your home emergency cover,
0:32:46 > 0:32:52it's really important that you don't just rush out and organise for a plumber to come in and help you.
0:32:52 > 0:32:55You must get in touch with the insurance company first.
0:32:55 > 0:33:01Every year, the Ombudsman looks at lots of complaints where the insurance company rejects the claim
0:33:01 > 0:33:07because the consumer got their own plumber, rather than talking to the insurance company first.
0:33:10 > 0:33:14At a time when money is tighter than ever,
0:33:14 > 0:33:19you need to know that your cash is working hard for you, avoiding rip-offs along the way,
0:33:19 > 0:33:25so we've put together a booklet of tips and advice to help safeguard your money.
0:33:25 > 0:33:29You can find a link to the free guide on our website.
0:33:32 > 0:33:34Or to receive a copy in the post,
0:33:34 > 0:33:40send an A5 self-addressed envelope to the address that we'll be giving at the end of the programme.
0:33:42 > 0:33:46Undoubtedly, the largest number of complaints we get from our viewers
0:33:46 > 0:33:51is all to do with energy prices, the lack of clarity from the energy companies,
0:33:51 > 0:33:58the confusion about tariffs, how many tariffs there are and how to read your own bill correctly,
0:33:58 > 0:34:02so today, I've come to Energy UK to talk to Christine McGourty
0:34:02 > 0:34:06to see if she can shed some light on the huge mix of energy tariffs.
0:34:08 > 0:34:14Christine, most of our viewers seem to not be able to read their bills, myself included. Can you read yours?
0:34:14 > 0:34:19I can read mine, but I work in the industry, so you'd expect that.
0:34:19 > 0:34:22But there is a lot of information on bills.
0:34:22 > 0:34:27You have to have your last meter reading, your latest meter reading, gas, electricity,
0:34:27 > 0:34:31which tariff you're on, your energy consumption.
0:34:31 > 0:34:36There's a lot of stuff on there and a lot of it is required to be there by the regulator,
0:34:36 > 0:34:42- but the companies are working hard t make it as simple as possible.- Bills are soaring, profits are soaring.
0:34:42 > 0:34:46That is very confusing and annoying for the consumer
0:34:46 > 0:34:53because it's all this, "We're going to do this, we might do that," while your shareholders are pocketing.
0:34:53 > 0:34:57That's absolutely not the case and if you look at the detail on profits
0:34:57 > 0:35:02pound for pound, companies invest more every year than what they make in profit.
0:35:02 > 0:35:08But let's talk about help. There is a huge amount being done this winter to help the most vulnerable people..
0:35:08 > 0:35:12- For example?- ..which everyone is concerned about.
0:35:12 > 0:35:16For example, 200 million being spent on a wide range of initiatives
0:35:16 > 0:35:20that includes, for example, an automatic £120 off your bill
0:35:20 > 0:35:23for the 600,000 poorest pensioners,
0:35:23 > 0:35:27several million, I think it's around four million letters going out
0:35:27 > 0:35:31to try and reach the priority customers and get them insulation.
0:35:31 > 0:35:34Insulation is not a big, sexy headline story,
0:35:34 > 0:35:38but it will save these people hundreds of pounds year after year.
0:35:38 > 0:35:43You say you're making moves and the big companies are working together.
0:35:43 > 0:35:48You all seem to be in cahoots with each other. One puts the tariff up, the next one follows suit.
0:35:48 > 0:35:54It's like you have a collective monopoly over the entire business, not enough competition.
0:35:54 > 0:35:58Many think that Ofgem should just split the whole business up
0:35:58 > 0:36:01and really enforce more open competition.
0:36:01 > 0:36:05The appearance may be very different from reality.
0:36:05 > 0:36:11We know the market is competitive an we urge people to take advantage of it by getting the best deal for them
0:36:11 > 0:36:15If you've never switched before, you can save hundreds of pounds.
0:36:15 > 0:36:19You make it sound simple - you can just switch and get a better deal.
0:36:19 > 0:36:22Ofgem, two years ago, told the big companies
0:36:22 > 0:36:26that you had 200 different tariffs on the market and to stop that.
0:36:26 > 0:36:28Now it's 400 different tariffs.
0:36:28 > 0:36:35What chance do I or a more vulnerable person, what chance do we have of sorting that out?
0:36:35 > 0:36:39I don't think you're moving fast enough towards what you're saying.
0:36:39 > 0:36:43I think the companies take this extremely seriously
0:36:43 > 0:36:47and they do recognise there are areas in which consumers expect more
0:36:47 > 0:36:53One example, one company has recentl just slashed its number of tariffs by about a third
0:36:53 > 0:36:57and there will be more changes next year to bills, to annual statements.
0:36:57 > 0:37:01The regulator is changing the way tariffs are going to work,
0:37:01 > 0:37:07so there are lots of things happening and I expect we will see more big changes next year.
0:37:08 > 0:37:11That's what the industry has to say for itself,
0:37:11 > 0:37:14but what about the regulator, Ofgem?
0:37:14 > 0:37:18We've heard how they've criticised the energy companies in the past,
0:37:18 > 0:37:23so what are they going to do to bring down or simplify our bills?
0:37:23 > 0:37:28Ian, this is one of the biggest issues that we're dealing with on RipOff Britain,
0:37:28 > 0:37:31so thank you for making the time to talk about it.
0:37:31 > 0:37:37From our mailbag, it is evident that people are subjected to ever increasing bills,
0:37:37 > 0:37:43yet the energy companies' profits are going up and up. The average person finds that hard to equate.
0:37:43 > 0:37:49You're the regulator and many would say that you're not regulating on that issue. Why not?
0:37:49 > 0:37:53First, it's for the companies to justify their own price increases,
0:37:53 > 0:37:57but we need to recognise that we are in an environment
0:37:57 > 0:38:01of rising wholesale prices, so the price that the companies do pay
0:38:01 > 0:38:07for the electricity and gas that they're going to provide on to their customers is rising.
0:38:07 > 0:38:09For example, our latest report shows
0:38:09 > 0:38:15that gas prices this winter are 40% higher than last winter.
0:38:15 > 0:38:20Assuming that the energy companies have passed that pricing on to the customer,
0:38:20 > 0:38:26nevertheless, the bottom line is the energy companies are just rising all the time in profits.
0:38:26 > 0:38:30I'm afraid, from a consumer's point of view, myself included,
0:38:30 > 0:38:33I look at that and I really balk at that
0:38:33 > 0:38:39because it always seems to go the way of the energy companies and never the way of the customer.
0:38:39 > 0:38:45There is competition in this market that should put pressure on prices, profits and quality of service.
0:38:45 > 0:38:51In our report earlier this year, we found that competition was being stifled
0:38:51 > 0:38:57through a combination of poor supplier behaviour and the complexit of the tariffs out there,
0:38:57 > 0:39:00therefore, we need to put through a range of reforms
0:39:00 > 0:39:04to really make this market much simpler for consumers
0:39:04 > 0:39:07to understand whether they're on the best deal.
0:39:07 > 0:39:11- What else are you suggesting? - For standard tariffs,
0:39:11 > 0:39:14we will set a standardised standing charge,
0:39:14 > 0:39:18then all the companies will compete on is a single unit price,
0:39:18 > 0:39:24so for people on standard tariffs, all they'll need to do is at a glanc compare one number from one company
0:39:24 > 0:39:26against one number from another company
0:39:26 > 0:39:32and they will know that if they go with the lower number, they will be on the cheaper deal.
0:39:32 > 0:39:38It's really important that the companies recognise that there i a lack of confidence in this market.
0:39:38 > 0:39:42Not just a lack, there is no confidence.
0:39:42 > 0:39:46Confidence has hit rock bottom. That's what the surveys are saying.
0:39:46 > 0:39:49It's in the companies' control to restore that confidence
0:39:49 > 0:39:53and the best way they can do that is to back our reforms,
0:39:53 > 0:39:57so we can get those benefits to consumers as quickly as possible.
0:39:57 > 0:40:02Is your bite sufficient? Should the government be giving you more powers?
0:40:02 > 0:40:07- We do think there are things that we could have more powers for. - Like what?
0:40:07 > 0:40:12At the moment, if companies are misbehaving and are found in breach of their obligations,
0:40:12 > 0:40:18we have the ability to fine the companies, as we have done in a few cases very recently,
0:40:18 > 0:40:23but we don't have the powers to give compensation back to consumers.
0:40:23 > 0:40:27Couldn't you force the companies to give compensation to the consumer?
0:40:27 > 0:40:30At the moment, we don't have that power.
0:40:30 > 0:40:34What we're asking from the government is the power
0:40:34 > 0:40:39to be able to both give the redress to consumers, as well as giving the fines to the companies.
0:40:39 > 0:40:45- It's a question of watch this space and I think I'll be back to see you next year.- Thank you.- Thank you.
0:40:47 > 0:40:52At Rip-Off Britain, we're always ready to investigate more of your stories.
0:40:52 > 0:40:55Confused over your bills, trying to wade your way
0:40:55 > 0:41:00through never-ending small print that leaves you totally confused?
0:41:00 > 0:41:05I might have been stupid for not reading it or I've read it and not taken it in.
0:41:05 > 0:41:07I could kick myself. I really could.
0:41:07 > 0:41:10Unsure what to do when you discover you've lost out
0:41:10 > 0:41:14and that great deal has ended up costing you money?
0:41:14 > 0:41:19I thought, "This cannot be true. It's totally unacceptable." I was so angry.
0:41:19 > 0:41:25You might have a cautionary tale of your own and want to share the mistakes you made with us,
0:41:25 > 0:41:27so others don't do the same thing.
0:41:27 > 0:41:33No-one knows about this, so this is very strange. I really would like to get this much clearer.
0:41:33 > 0:41:36You can always write to us at...
0:41:43 > 0:41:47Or you can get in touch by sending us an email to...
0:41:52 > 0:41:57Don't forget, the Rip-Off team is ready and waiting to investigate your stories.
0:41:58 > 0:42:04From today's stories, it's obvious our energy companies don't always make things easy for us,
0:42:04 > 0:42:08but when the cost of keeping warm is such a financial burden,
0:42:08 > 0:42:12we need our bills and tariffs to be as simple to understand as possible.
0:42:12 > 0:42:16We certainly do and if you get bad service, don't put up with it.
0:42:16 > 0:42:22Switching suppliers is not that complicated, though a lot of people still haven't done it.
0:42:22 > 0:42:25Just don't be afraid to take your business elsewhere.
0:42:25 > 0:42:29That's what I did last year due to this programme.
0:42:29 > 0:42:34I hope you'll join us again when we'll be investigating even more of your stories
0:42:34 > 0:42:37and showing you how to avoid being ripped off.
0:42:37 > 0:42:42- Until next time, thank you for your company and see you soon. - Bye-bye.- Goodbye.
0:42:59 > 0:43:03Subtitles by Subtext for Red Bee Media Ltd 2011
0:43:03 > 0:43:06Email subtitling@bbc.co.uk