Annual energy statements were launched earlier this month to help reduce household gas and electricity bills.
Ofgem was behind the new initiative, which began on 1st July. Under it, energy suppliers have until 1st December to issue their customers with their first annual statement.
The idea is to give customers the information they need to help them check their current gas and electricity prices, and to switch to another tariff more easily should they find a cheaper deal.
What will the annual statement include?
The name of the tariff you are on.
The terms and conditions of the tariff.
Any discounts that apply to your tariff, like Direct Debit savings.
Any premiums that apply to your tariff, for instance if you pay by cheque, you should be given details of the savings you could have made with a Direct Debit payment option.
Providing you have been with the same energy suppliers for the past year, it will have details on how much energy you have used in the past 12months in kilowatt hours.
An estimated cost of the energy – this figure is based on you staying on the same tariff, at the same price, and your energy consumption remains at the same level.
A reminder that you can switch energy supplier.
Details of where you can find advice should you want to switch energy supplier.
Annual statements have been welcomed by price comparison website uSwitch.com, whose recent research showed customers who switched supplier over the past 5 years to have saved over £1,000 on average during this period.
Its head of consumer policy, Ann Robinson said, ‘These annual statements will play an important part in getting more consumers to take advantage of the competitive market. Not only will they help consumers manage both their finances and energy better, but the statements will provide households with all the information they need to check their current rate and energy plan. This will make it easier for them to save money by switching.’
She added, ‘Consumers should treat these annual statements as an annual reminder to make sure they are paying the cheapest price for their gas and electricity.’
Sources:
http://www.thisismoney.co.uk/bargains-and-rip-offs/household-bills/article.html?in_article_id=507605&in_page_id=510
http://www.uswitch.com/news/utilities/annual-energy-statements-aim-to-save-people-cash-19871165/
http://www.uswitch.com/gas-electricity/annual-energy-statements/
