30 percent do not check their energy bills
According to uSwitch.com, 30 percent of energy customers do not check that they are billed for the right amount of gas and electricity. This is despite a 42 percent increase in energy prices last year, which has left many struggling with an average annual household energy bill of £1,293.
Interestingly, of the 5,500 energy customers surveyed, only 21 percent are actually taking the time to ensure the accuracy of their bill, by checking it against their meter reading and against previous bills. Those that are not taking these steps are at risk of either overpaying, or underpaying which could result in unwanted debt. The latter scenario would not appear to be uncommon, with a recorded 6.8 million households in debt to their energy supplier. The average debt stands at £114, which is substantial enough to stop consumers from being able to switch suppliers.
An analysis of the customers that do not check their bills revealed that 19 percent do not understand them, 28 percent are simply not inclined to check them, and 26 percent have confidence that their supplier will bill them correctly.
Significant energy prices have resulted in consumers being advised to switch to a cheaper plan, however the information contained within their energy bills would appear to be either insufficient or misunderstood and is therefore proving unhelpful. A massive 66 percent of energy customers said that their energy bills do not assist them in understanding how to go about cutting their energy usage and costs.
In addition, 60 percent of customers feel that their energy bills do not assist them in understanding how their supplier could improve the energy-efficiency of their home. This comes despite suppliers’ Carbon Emission Reduction Targets (CERT) and the additional money that consumers are paying to fund companies in supporting energy-efficiency – £19 on gas and £18 on electricity.
Ofgem is looking to rectify these problems by urging the industry to produce simplified bills and additional, annual energy statements. However, this will take time to establish and therefore it is not likely that consumers will receive information of an appropriate standard in time to reduce winter bills.
Ann Robinson, Director of Consumer Policy at uSwitch.com, commented: “Energy bills are a key link in the communication chain between suppliers and their customers. Unfortunately, for many consumers, this link is broken. As a result, they are not getting the information they urgently need to start bringing the cost of their energy down.
“Ofgem is working with the industry to simplify bills and to ensure that all customers get an annual energy statement. However, this will take time to bear fruit and so will not help consumers reduce this winter’s heavy fuel bills. Consumers should help themselves by making sure that they check their bills regularly and provide their supplier with up-to-date meter readings.
“The priority for consumers today is to make sure they are paying the lowest price for their energy and to use less of it. If they are not getting the information they need to help them with this they should contact their supplier or seek independent advice on the energy plans and the energy efficiency help that is out there. With energy prices so high basic steps, such as paying by direct debit, moving to an online plan and becoming more energy efficient, can pay dividends.”
Homeowners that are looking to reduce their energy bills could consider using a secured loan to finance energy efficiency increasing home improvements. One of many options available to fund home improvements, a secured loan could finance energy efficiency increasing projects such as additional property insulation and replacing draughty windows and doors. Those who are going the extra mile and who are considering the environment could also consider installing solar panels. Secured loans are usually repayable over a term to suit the borrower, from 5 to 25 years.
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