People who live permanently in mobile homes can experience significant barriers in accessing reliable and affordable energy, a new Consumer Scotland report shows.
The report highlights a range of concerns from park home residents over inaccurate energy billing, unexplained charges, resale arrangements and poor access to support.
In one example, residents stopped receiving invoices from the site owner after they raised concerns over costs. In a separate case, residents reported being verbally abused by the site owner for questioning bills, leading to the police being called.
Many of Scotland’s 8,500 park home residents purchase electricity, heating oil or liquefied petroleum gas (LPG) from site owners, meaning they have limited or no ability to influence contracts, tariffs or billing arrangements.
While Ofgem’s Maximum Resale Price arrangements (MRP) limit how much site owners can charge when reselling electricity and gas, Ofgem has no enforcement powers.
The report also highlights that consumers who rely on heating oil and LPG have even fewer protections.
Unlike electricity and gas, there is no equivalent maximum resale price framework covering heating oil and LPG, meaning site owners can apply profit from the current arrangements.
Ofgem is currently reviewing the MRP, and Consumer Scotland is recommending a range of reforms to improve transparency, strengthen accountability and ensure residents receive consumer protections similar to those available to other households.
Consumer Scotland’s recommendations include:
- stronger accountability with consideration of enforcement powers to allow Ofgem to take action where resale price rules are broken
- improved transparency with a requirement for park home owners to provide clearer and more consistent information on energy tariffs, consumption and charges for residents
- Consumer Scotland and consumer advice bodies to help raise awareness of energy resale rules among site owners, residents and public bodies
- consideration of whether resale price disputes can be brought within the remit of the Energy Ombudsman to give extra protection
Alistair Hill, Head of Energy Transition at Consumer Scotland, said:
"Everyone should have confidence that they are paying a fair price for the energy they use. However, our work suggests that some park home residents face significant barriers in both understanding the energy charges they receive and ensuring these are fair.
"While there are protections in place for the resale of electricity and gas, concerns remain around transparency and enforcement. For residents using heating oil and LPG, protections are even more limited.
"Many park home residents are older people or live with long-term health conditions, making it especially important that effective safeguards are in place.
"There is a clear opportunity for governments, regulators, industry and consumer organisations to work together to strengthen protections, improve transparency and ensure park home residents are not left behind.
“Ensuring there are adequate protections and support in place for this group of consumers is vital.”
Chair of the Scottish Confederation of Park Home Residents Associations Leanne Caplis said:
"Park home residents, many of whom are older or living with disabilities, face significant barriers in accessing fair energy prices, support schemes and effective redress.
“No one should be disadvantaged because they live in a park home. We welcome Consumer Scotland’s focus on these issues and look forward to working with partners to improve outcomes for residents across Scotland."
As a next step, Consumer Scotland will bring together key bodies to identify practical solutions and develop the evidence base on issues facing park home residents.
While focused on Scotland, many of the findings have wider relevance across Great Britain.
Background
Improving access to reliable and affordable energy for park home residents
Consumer Scotland's briefing examines challenges relating to energy resale arrangements, access to support and consumer protections, and routes to redress for park home residents.
The report uses a combination of existing evidence, and Consumer Scotland engaged with a range of key bodies including the Scottish Confederation of Park Home Residents Associations, government officials, those working in trading standards, regulators and the third sector.
The report also features the views of residents from five local authority areas.