(6 October 2008) UK consumer champion energywatch has published research led by the University of Greenwich, which reveals how low income households are failed, not only in the energy market but across seven essential services. The research examines the food, housing, water, telecommunications, public transport, financial services as well as the energy sector.

The report is called “Poor choices: the limits of competitive markets in the provision of essential services to low income consumers.” Professor of Energy Policy Steve Thomas says: “The increasing reliance on markets for the delivery of essential goods and services places additional burdens on households, especially low-income households, to shop around to get the best deal. “In many cases, these markets are stacked against low-income households. The best deals are only often available to those who have full-service bank accounts and the skills and equipment to search the internet. Energy is perhaps the sector where low-income households get the worst service. Consumers that can pay by Direct Debit and operate their account on-line pay on average 20% less than other payment methods.” To read the press release:

Press release

The report can be found at http://www.psiru.org/reports/ewatch.pdf

The research, “Poor choices: the limits of competitive markets in the provision of essential services to low income consumers”, was led by the Public Services International Research Unit at the Business School, University of Greenwich. The Unit specialises in public policy on services including water, energy, waste management and healthcare, researching issues like the impact of privatisation and introducing competition to utilities.