Wednesday 16 February 2011

Energy Companies fail to provide Annual Statements

Households are left in the dark about energy bills as more than 60pc claim not to have received an annual usage statement, despite new compulsory new rules by regulator Ofgem.
All households were to receive an annual statement by December 1 last year depending on their supplier's billing cycle. The statement details each household's current energy plan, yearly consumption and predicted bill, any discounts that are available and advice on how to change supplier.
The research by comparison site uSwitch.com highlighted potential design or layout flaws that could be making it difficult for customers to identify an annual statement and to use the information to make informed choices, as Ofgem had intended.
Ann Robinson, director of consumer policy at uSwitch, said: "Annual statements are a linchpin of Ofgem's push to get the competitive energy market working properly, but consumers clearly don't think they are coming up to scratch.
"The statements appear to be poorly labelled, difficult to understand and do not stand out from ordinary energy bills. As far as consumers are concerned, annual statements as they currently stand are not fit for purpose."
Marie Clair, spokesman for the Plain English Campaign which argues the need for clearer bills, said: "Annual energy statements are confusing and inconsistent. Suppliers have fallen into the trap of using language that is familiar to them but unclear and often meaningless to the consumer.
"There needs to be consistency in the way suppliers present the information and the language they use. Common sense would suggest that the best bits are taken from all the suppliers and pulled into one standard format adopted by all. This would really benefit consumers and turn annual statements into a meaningful and useful piece of communication."
Energy UK, which represents suppliers, attributed the delays in statements to the volume of customers.
"With 26 million homes in the UK, this has been a huge undertaking. Those who have not yet received their annual statements should get them soon," he said.

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