A recent study into energy tariffs has shown that there are over 4,000* different gas and electricity deals available to UK customers. It’s no wonder that most of us are confused. When surveyed, a staggering 7 out of 10 people* said they were baffled because there are so many tariffs to choose. This is not helping households who are trying to get themselves on the best deals, so what is being done?
The UK’s largest consumer body Which? has asked the industry regulator Ofgem, and the government to help. They have been called to put pressure on energy suppliers to simplify the way they are putting their energy tariffs together. Customers need to understand what deals they are on, and how they can reduce their gas and electricity bills, and not be inundated with complex pricing structures.
Which? also said that as a nation we should be focusing on reducing our carbon emissions, and during a time when energy prices are high, customers need to be better informed in ways they can reduce the amount of energy they use and cut their bills. Energy suppliers need to make their deals and tariffs much clearer, before consumer confidence is lost.
Also included in the Which? report was a call for easier to follow bills. The report said that most people find their utility bills difficult to understand, because their energy usage and costs are unclear. If bills were straighter forward, then it would help customers to take more control of the amount of energy they were using. They would also find switching to another supplier much easier as they would have the necessary information about their existing tariff.
Ofgem have been urged by Which? to take responsibility, by applying its Energy Supply Probe which prioritizes the protection of customers. The good news is that many MP’s have joined the debate in favor of consumers. Simon Hughes MP, The Shadow Energy And Climate Change Secretary for the Liberal Democrats, has expressed that energy suppliers have been ‘taking advantage of their customers for far too long..’ and that they ‘…must make their bills simple and clear so that people can see exactly what they are paying for and what their options are’.
If you are amongst the majority who find energy tariffs confusing, then help is available. Comparison websites like Confused.com offer easy to follow guides, such as ‘Understanding Your Energy Bill’ and ‘Where Your Energy Spend Goes’, there is even an ‘Energy Jargon Buster’ to help you make sense of it all. You can also contact you energy supplier for advice.
*Source – Which? 2009
