Among those wanting to switch energy suppliers, many decide not to because of unclear information

Three in four Dutch consumers who indicate they want to switch energy suppliers within the next two years eventually decide not to because they find the information from energy suppliers unclear and not easy to understand. As a result, these consumers miss out on potential savings of up to EUR 400 per year.

This is one of the conclusions of a survey of the Netherlands Authority for Consumers and Markets (ACM) about competition and consumer confidence in the energy market in the second half of 2012.

ACM based the potential savings figure on a study into contracts that include both electricity and natural gas (dual fuel contracts) and that are offered on price comparison websites. The largest price differences are found among permanent contracts. The survey is just a snapshot, since the largest price difference between the products of various energy suppliers just six months earlier was EUR 500.

‘Competition in the energy market makes it possible for consumers to realize big savings,’ says Anita Vegter, member of the board of ACM. ‘Yet, many consumers do not switch because they find the information they get unclear or even difficult to understand, among other reasons.’

In 2012, 12.6 percent of consumers switched suppliers for electricity, and 12.3% did so for natural gas.

37% of consumers say they will switch within the next two years. ACM has established that consumers find the information that energy suppliers give about their products leaves much to be desired. Almost one in four consumers consider the information of energy suppliers to be either unreliable or very unreliable.

ACM discusses with energy suppliers about improvements to the provision of information. ‘But, at the same time, we tell consumers they should also ask their energy suppliers for clearer information,’ Ms. Vegter adds. ‘And if you need help, you can use the online switching guide on consumer information website ConsuWijzer.´

Another reason for the low switching rates, according to the survey, is that consumers continue to underestimate what their savings would be if they switched energy suppliers. When asked to give an estimate, consumers throught they would save on average EUR 89 if they switched. If asked how large their savings should be in order for them to consider a switch worth the effort, consumers say on average EUR 175 per year.