Consumers baffled by energy tariffs

70% of consumers find the number of gas and electricity tariffs available confusing, according to a report from Which?

The consumer champion is calling for clearer bills and simpler tariffs after it identified over 4,000 different options for consumers to choose from. It believes that this makes it very difficult for consumers to understand what schemes they are on, whether they are on the best deal, and how they can best reduce their energy consumption and costs.

Which? is calling on energy suppliers, the Government and Ofgem to take immediate steps to simplify bills and tariffs. These include introducing an itemised summary box on bills and statements to show key information such as tariff name, energy used and energy rate. It is also calling for annual statements that summarise the account holder’s annual energy usage and the details of their tariff.

Which? also argues that all tariff marketing material should carry a similar ‘summary box’ and that all tariffs should come without hidden charges and with a built in warning period for price changes.

Dr Fiona Cochrane, Which? energy campaigner said:

“With 4,000 energy tariffs available, consumers are being spoilt by choice. How is anyone meant to understand which tariff is best for them? It’s time for suppliers, Ofgem and the Government to make bills and tariffs more transparent. Helping consumers cut their energy usage will contribute to more affordable bills and lower carbon emissions.”

“Ofgem should use this Energy Supply Probe to deliver on its first priority to ‘protect consumers’ and we look forward to seeing them step up to the mark.”

If you are looking to secure the best deal from your energy supplier, TotallyMoney.com. We have access to every tariff from every supplier in your area. Just visit http://www.totallymoney.com/utilities/ and enter your details to compare rates and find the best deal for you in minutes. When you’ve decided on your new supplier, simply click Apply and we’ll do the rest.