A study by Migrate discovered as many as one in 10 renters had been banned from changing provider, despite the fact doing so could save them as much as £300 a year.
Now the auto-switching service is reminding tenants, if they are responsible for their utility bill and pay their energy supplier directly they have the right to switch provider, regardless of whether their landlord has a ‘preferred supplier’.
Migrate said its survey uncovered a number of misunderstandings from private tenants over their energy bills and has estimated tenants could be overpaying for their gas and electricity by a collective £511 million each year.
George Chalmers, CEO of Migrate, said renters were far more likely to remain with the same provider than homeowners.
He added: “No matter what type of tenant you are, if your name is on the energy bill and you pay for your energy directly from a supplier, the likelihood is you have the right to switch your energy supplier and should be doing so regularly to ensure you’re not overpaying.
“Not switching is costing renters as much as £511 million pounds a year. However, migrating energy supplier is easy to do, and with an auto-switching service, you’ll only need to sign up once to receive regular savings of around £316 on average.”
Top five reasons private tenants are not switching (source: Migrate)
- Too busy (58%)
- Didn’t think they were allowed to switch (53%)
- Don’t know how to switch (42%)
- Feel switching isn’t worth the effort (14%)
- Explicitly told by landlord/letting agent that they were not allowed to switch (13%)