Landlords 'costing tenants millions' by preventing them switching energy supplier

Landlords are costing tenants millions of pounds in unnecessary energy bills by stopping them switching supplier, new research shows.

A survey found 13% of landlords admit denying private tenants the chance to switch their energy supplier.

The figure rose to 19% among landlords who rent out three or more properties.

Price comparison service uSwitch, which carried out the study, estimated this adds at least £161 million to renters' bills.

Among the reasons given by landlords for blocking changes were a high turnover of tenants and late rental payments.

According to the research, 36% of landlords wrongly believe naming a "preferred supplier" in the tenancy contract allows them to stop renters switching. In fact, tenants are under no obligation to use the named provider.

Ofgem regulations say tenants who are responsible for paying their energy bills are allowed to switch supplier and landlords and letting agents cannot unreasonably prevent them from doing so.

USwitch called for a review of misleading terms in tenancy agreements, better training for landlords and more information for tenants about their rights.

Ann Robinson, director of consumer policy at uSwitch, said: "Landlords who unfairly refuse tenants their right to switch are standing in the way of more affordable energy for millions of homes.

"Given that tenants are half as likely to switch as homeowners, any measures to break down the barriers and encourage them to take more control of their energy will reduce bills by millions."

The Government said there was no reason why landlords should stop tenants switching supplier.

"Consumers have a choice and families are wise to shop around for the best deals," a government spokesman said.