Consumers have voted energy companies the worst offenders for sending out confusing bills for the third year in a row. Despite Ofgem reforms in April to simplify statements, just 30% say their bill is now easier to understand__.
Energy suppliers are voted the worst companies for providing confusing bills
Despite Ofgem’s attempt to simplify bills, more than half (53%) of consumers haven’t seen any improvement since its reforms were introduced – and only a third (30%) say they are now easier to understand
Under the reforms, suppliers must also provide information about the cheapest tariff available, yet over half (51%) of consumers do not recall seeing this on their bill.
Consumers have voted energy suppliers as the biggest culprits for sending confusing bills, according to new research from Uswitch.com, the independent price comparison and switching service. Energy companies come bottom of the table for the third year in a row, with mortgage providers coming top of the class.
In April this year Ofgem directed suppliers to improve the clarity of bills. Companies must now include clear information to help consumers manage their energy, including a personal projection of what they can expect to pay over the year based on their usage. They should also show information about the provider’s cheapest tariffs available to help consumers switch to the most competitive deal.
Yet despite these reforms, just three in ten (30%) consumers are finding bills easier to understand, and the majority (53%) have seen no change to them since the introduction of the new rules. Over half (51%) do not recall seeing anything on their bill about cheaper tariffs – and of those who have seen this information, just 41% have used it to switch to a better deal.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “It’s hugely disappointing to see energy suppliers once again ranked as the worst offenders for sending out confusing bills, particularly as most of us have by now received a new-look bill to deal with this very problem.
“While it’s encouraging that a third of consumers say their bills are easier to understand, the majority are still having difficulties getting to grips with them. The findings clearly show that Ofgem must look again at the effectiveness of their reforms, and work with consumers and suppliers to produce a bill format they can understand.
“Customers are facing sky-high energy prices and need to know where their money is going. Knowledge equals power – and people who are armed with clear information about their energy usage and spend will be in a better position to take control of their bills. We need to give consumers a reason to engage with the market, and helping them to understand their bills is the first step.”
ENDS
Research conducted by Opinium Research from 26th to 29th August 2014, amongst 2,012 UK adults (aged 18+). Results have been weighted to nationally representative criteria.
Consumers refers to those who are involved in paying a dual fuel provider for their household energy.
In response to: ‘Thinking of your different household bills, how would you describe your understanding of them’ 10% of consumers receiving energy bills said they rarely understand the information on them with 4% saying they don’t understand any of the information on their bills. These two percentages added together makes 14%. This is compared with 2% of people who rarely understand mortgage bills, and 1% who don’t understand any of the information on their mortgages bills, which combined adds up to just 3% who do not understand mortgage bills.
| Sector provider | Percentage of customers who say they do not understand their bills | |
Mortgage
| 3% | |
Credit/Store Card
| 3% | |
Mobile Phone
| 4% | |
DTV
| 4% | |
Home Telephone
| 4% | |
Broadband
| 5% | |
Council Tax
| 6% | |
Water
| 7% | |
Energy
| 14% |
Source: Uswitch.com
In response to: ‘Since Ofgem’s reforms in April, would you say that your bills for each of the following have become easier or harder to understand’ 53% of consumers said they saw ‘no difference’; with 10% answering ‘a lot easier’ and 20% answering slightly easier’. The two percentages added together makes 30%
In response to: ‘As part of the reforms, your energy provider has to provide details on your bill of their cheapest tariff available to you. Before today were you aware of this?’ 28% answered ‘Yes – I was aware of this and my supplier has told me about a cheaper deal’; 21% answered ‘Yes – I was aware of this but my supplier has not told me about a cheaper deal’; 21% answered ‘Yes – I was aware of this but am already on the cheapest deal I can get with my supplier’. 17% answered ‘No – I was unaware of this and my supplier has not told me about a cheaper deal’; with 13% answering ‘No – I was unaware of this and don’t know if my supplier has told me about a cheaper deal’. The combination of those who answered ‘No – I was unaware of this and my supplier has not told me about a cheaper deal’ (17%), those who answered ‘Yes – I was aware of this but my supplier has not told me about a cheaper deal’ (21%), and ‘No – I was unaware of this and don’t know if my supplier has told me about a cheaper deal’ (13%) is 51%.
In response to: ‘Have you used this information to shop around for a more competitive tariff?’ 41% of those who have received information from their supplier, answered ‘Yes – and I have switched to a new provider’.
Jason Wakeford
Phone: 0203 872 5612
Email: jason.wakeford@uswitch.com
Twitter: @UswitchPR
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