Annual energy statements make it easier to switch energy. Find out how they work.
Annual energy statements are a statement from your energy supplier giving you information about how much gas and/or electricity you've used that year, and how much it has cost you.
What information is on an annual energy statement?
Ofgem says that your annual energy statement must contain:
The name of your tariff
How much energy you've used in the past 12 months
This is in kilowatt hours (unless you've been with your energy supplier for less than 12 months)
The estimated cost in pounds per year
If you stayed on the same tariff, the tariff stayed the same (e.g. no price rises or price cuts) and if you carried on using the same amount of energy
The main terms and conditions of your tariff
Details of any premiums or discounts
The details could apply to the tariff you're on, or that you may be available to get if you switch to another tariff or payment method with the same supplier (e.g. if you paid by cheque and there was a direct debit discount available, your energy supplier would have to tell you about this on you annual energy statement)
A reminder that you can switch your gas and electricity supplier.
What do annual energy statements mean for you?
Annual energy statements are being introduced by Ofgem as part of a raft of changes designed to give customers more power when it comes to their gas and electricity bills.
Annual energy statements make it easier for people to compare tariffs and make sure that they are getting the best deal on their gas and electricity.
Your annual energy statement will make it easier to switch, because it will provide you with all the information you need to compare prices on one piece of paper, so there's need to hunt around for your bills, worry about whether they're estimated readings or not, guess what your plan name is or do complicated calculations to work out your annual usage.
Annual energy statements are being rolled-out by December 2010, so when you receive yours, don't just shove it in the back of a drawer - act on it. Think of it as an annual reminder to make sure you're paying the cheapest price for your gas and electricity.