Customers who choose not to switch energy supplier could soon be rewarded with loyalty schemes. However, these incentives are unlikely to match what you would save by switching.
Energy customers who do not switch suppliers could soon be given loyalty bonuses under dramatic plans being considered by some energy firms.
At present, around two thirds of households are still on their provider's expensive standard energy tariff.
These people haven’t bothered to even move onto a cheaper energy deal with their existing provider, let alone switch to a rival firm.
In fact, more than half of energy customers have never switched supplier, according to the Competition and Markets Authority, and collectively they are overpaying by £1.4 billion a year.
Don't make your supplier rich - switch to a cheaper energy deal today
Rewarding loyalty?
Now, two of the ‘Big Six’ energy providers, Npower and EDF Energy, have told MPs they could introduce loyalty programmes to “alleviate the extra expense of standard tariffs,” according to the BBC.
The loyalty schemes will target the 10 million customers who are currently paying way over the odds for their energy on standard tariffs, who haven’t switched supplier for at least three years.
The news comes a month after Greg Clark, Business Secretary, said that customers who have been on standard tariffs for a long time could potentially be rewarded, rather than persuaded to move to a different supplier.
What the energy firms say
Simon Stacy, managing director of domestic markets for Npower, explained to the Business and Energy Committee how he thought the reward scheme might work.
“For example, could we provide our standard customers with a free boiler service?
“We’ve done a trial of that to see whether it resonated with customers,” said Stacy.
“We want to try and reward customers in a way they wouldn’t expect.”
EDF Energy has also stated it is looking into introducing a loyalty scheme.
A flawed idea?
If you have never switched energy provider, you could save yourself around £200 a year by moving to a cheaper deal, according to Government's own figures.
By contrast, the average boiler service costs £60, according to figures from Which.
If that’s the reward you get for being loyal, then be disloyal instead. Take a look at the cheapest deals on the market and get switching today!
Switching is just the start. Here's how to slash your energy bills even further:
Cut the cost of heating your home