Should energy providers explain more clearly about actual vs estimated annual usage and monthly DDs?

alicef

I have read a number of postings whereby posters appear confused by actual vs  annual estimated usage and calculated monthly DDs. Costs are set to rise significantly pushing more into utility bill cost issues.  

MWT

I'm not sure how much clearer it can be made, unfortunately many people do not take the time to read the information they are given, but it is true that the price changes are focusing their minds in this rather more keenly than they have for the past few years.

We will see more people arriving here looking for help so we just have to continue to give the answers they need where possible.

Phlik

There's endless information available from most suppliers in the form of leaflets through the door, website information, videos etc. It's only any use if people bother to read/watch it. There's a large minority who don't bother with meter readings let alone delving deeper into their bills and how they're calculated.
Standard practice seems to be ignore it all until a large bill drops on the mat then kick off and blame everyone but themselves.

Verdigris

It is up to the customer to report their usage accurately. OK, sometimes they can't, if they've only just moved into a property, or had a major change of circumstances, but it isn't hard to find reasonable estimates of what a particular property type might consume, an EPC, for example, and then adjust accordingly. Better to overestimate, particularly at the moment, so you don't end up with an unpayable debt in a year or so's time.

There is also the popular misunderstading that a fixed tariff is an "all you can eat menu". The unit price is fixed, not the quantity you use.

If I ruled the world you'd have to pass an exam, which included energy use estimates and budgeting, before you could rent or buy a house. You have to do that before you can drive a car.

Astria

I don't see how they can explain more, I think it's mostly to blame on comparison and switching sites - Mr Blogs enters their details and gets told "We can do £55/month, £15/month cheaper than you are paying now", signs up and believes that's the last of it. They rarely know the actual rates they are being charged until they find out they are in debt 6 months later. The switching company doesn't care as they have their referral fee.

Sea_Shell

I've tried to educate my family.

It's like pulling teeth!!

Oh well, they are all adults...I can't do everything for them.

They'll probably ring in a panic very soon!

maisie_cat

I actually think that the "illustrations" and things like the headline cap 54% increase don't help.
The number of consumers whose consumption mix and KWH match those illustrations is likely to be very few. Maybe if they used mode rather than mean fewer consumers would be confused.
So everybody whose usage doesn't exactly land on average need a forecast of their own usage in KWH in both fuels and night/day mix for those tariffs to determine their own "illustration"
It's easy enough to calculate the annual usage of which 1/12th should be the DD, but there is often confusion between consumption in any given period and the payment on account that is the direct debit.

Phlik

Astria said:

I don't see how they can explain more, I think it's mostly to blame on comparison and switching sites - Mr Blogs enters their details and gets told "We can do £55/month, £15/month cheaper than you are paying now", signs up and believes that's the last of it. They rarely know the actual rates they are being charged until they find out they are in debt 6 months later. The switching company doesn't care as they have their referral fee.

I'd disagree, I've used the switching and comparison site many times and all the information is there on the screen covering ppkwh standing charge etc. People choose not to read it.

Robin9

I don't think the industry handles the term DD very well and I can quite understand why people get confused. 

I pay my Council Tax , my Water Rates etc  by DD and I know they won't change as the starting point is fixed - then the DD is 1/12th or 1/10th etc.

Gas and Electric aren't fixed - you can take an educated guess but there are many variables -  the Beast from the East, you stay at home (due to illness) instead of 2,3 4 weeks holiday. .........   


But the best thing people can do is read that meter - 1) you will get accurate bills and 2) you will get a good idea of where your energy is being used.

alicef

Whilst I appreciate it is down to a customer to be mindful I can't see that it is so hard for a utility company to put up a banner on a bill (monthly/quarterly whatever) to remind a customer that their bill is an estimate, that their actual consumption may be more, to provide an actual meter read, etc. 

MWT

alicef said:

Whilst I appreciate it is down to a customer to be mindful I can't see that it is so hard for a utility company to put up a banner on a bill (monthly/quarterly whatever) to remind a customer that their bill is an estimate, that their actual consumption may be more, to provide an actual meter read, etc. 

There is a lot of that information already on the bills in a format mandated by Ofgem, but people simply do not read them unfortunately.