Investigation into consumer understanding of energy billsTuesday, 14 February 2012 10:50
Bill literacy is one of the areas being investigated by the Energy and Climate Change Committee to see if you the homeowner really understand what you are entitled to.
The enquiry comes off the back of research from Ofgem which showed most energy bills needed clearer information that is easier to understand.
Ofgem also found that consumers needed more information on how to look at their personal costs and compare them to other tariffs in the market so they could make the best choice.
Basic terms such as kWh will be tested for general understanding as well as the ability of consumers to understand the effect usage has on their overall bill.
Consumers will be asked if they understand the breakdown of a bill including what wholesale costs are, transmission and distribution charges, environmental/social policies and VAT.
Ofgem found too many tariff options and a lack of understanding made it difficult for consumers to choose the ideal billing for them.
“This research is a further call to action for energy suppliers to back Ofgem’s reforms to deliver the simplicity that consumers repeatedly say they want,” Ofgem’s senior partner for markets Andrew Wright said.
“It is vital consumers can understand the information they receive from energy suppliers so they can choose the right deal for them.”
Submissions can be made to the enquiry by March 9. Visit the Energy and Climate Change Committee website for information.