Utility bills leave consumers baffled

Consumers are being left vulnerable to debt because of near impossible to understand utility bills, according to new research from uSwitch.com.

The reveals broad inconsistencies in the standard of bills being issued by different companies and sectors. uSwitch.com argues that while some are simple and straightforward for people to understand, others are totally confusing.

According to the report, energy suppliers put out the most confusing household bills, followed by water companies and home telephone and broadband providers. Three quarters (75%) of those questioned found energy bills confusing, with 59% baffled by water bills (59%).

With countless mysteriously-named tariffs available from energy suppliers, it’s not surprising that 68% of consumers find energy bills harder to understand than other household bills. And even though the average household spends £1,243 a year on energy bills, only 40% can comfortably understand how their energy company has calculated their bill.

Perhaps energy providers should take a leaf out of the banks’ books. According to the survey, almost three quarters (72%) of consumers find their bank and building society bills and statements simple and straightforward to understand.

Ann Robinson, Director of Consumer Policy at uSwitch.com, said:

“Nobody likes bills, but they do play a fundamental part in the relationship between a company and its customers. A well-written, clear and concise bill should leave consumers feeling empowered and in control, not bemused. This is why it is so worrying to find that three quarters of us are confused by our energy bills.”

“Ofgem has signalled its intention to work with suppliers on improving energy bills. This is a vital piece of work if we are to see well-informed consumers taking full advantage of the competitive energy market. If Ofgem is to succeed in making energy bills simpler, clearer and easier then it has to look outside of the energy industry for ideas on best practice. Judging by our research, it could do far worse than look to banks and building societies, which seem to be leading the way in providing consumers with bills and information they can easily understand.”

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