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

MattMattMattUK

Ultrasonic said:

My main thought is that this sort of thing should be taught in schools. It may be now I suppose but it certainly wasn't when I was young.

Nothing is taught on personal finances in school, Martin launched a campaign with a downloadable book on personal finances and I believe that it will be taught in a limited way in some Welsh schools from the next school year. When 20-25% of children leave school functionally illiterate and many leave school with equally bad skills in maths I don't hold out that much hope. 

There have always been people who are good with money and people who are bad with money, the majority of that difference comes down to those who are able to delay gratification and those who are not, although general intelligence, rational thinking, ability to analyse cause and effect and other causes all factor in. 

[Deleted User]

Mobtr said:

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. 

Think you’ll find they already do. Company I used to work for used to have in big letters & in bold ‘your bill is based on estimated readings’ it would also say ‘contact us with your own readings for a more accurate bill’ It also had estimate written on the billing paper across the middle of each page. It’s not as if companies try to hide it 

I too have long struggled to understand why anyone would pay an energy supplier over £1k (now £2k) a year and not bother to look at their bills, or provide their supplier with monthly meter readings. Ofgem keeps on saying that it works hard to prevent consumers getting into debt, yet it quite happily allows suppliers such as EDF to bill once every 6 months. With energy prices as they are, this practice should be banned: monthly billing should be an Ofgem SLC.

Sea_Shell

Unfortunately, many people stick their heads in the sand when it comes to financial stuff, not just energy bills!!!

MattMattMattUK

Sea_Shell said:

Unfortunately, many people stick their heads in the sand when it comes to financial stuff, not just energy bills!!!

Many people stick there heads in the sand about a lot more than finances as well, health, relationships, obesity, the state of the country etc. People's ability to ignore what is happening in their lives still astounds me. 

MWT

Sea_Shell said:

Unfortunately, many people stick their heads in the sand when it comes to financial stuff, not just energy bills!!!

So true, you just have to visit the other forums here for the evidence.

Phlik

Astria said:

Phlik said:

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.

Which comparison site did you use? I've just looked on Uswitch, and the first thing I noticed was this:

"You’re on a standard variable plan. The rates you pay will increase by 54% from April 1st 2022."

It seems like even they don't know what they are doing.

I then get the following as an option:

Next 1 year v8 Fixed rate contract 12 Months
Early exit fee None Monthly cost £208.55
Bronze Standard - Green Tariff
Additional annual cost + £1,619.09 What will I pay?

To get the actual unit costs I have to click "What will I pay?", and then "See all tariff information", then scroll down to the bottom of the page and finally click on "View rates". It's like they are trying to hide them from you, no one is going to do that for every provider.

Saying that though, I did show me this surprising provider:

Help Beat Cancer Green Fixed SR May 2024 DM3

Gas Unit rate 18.934p per kWh
Standing charge 28.864p per day
Exit fees £100.00
Ouch!

So all the facts and figures are there and they're one maybe two mouse clicks away.

Astria

Phlik said:

Astria said:

Phlik said:

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.

Which comparison site did you use? I've just looked on Uswitch, and the first thing I noticed was this:

"You’re on a standard variable plan. The rates you pay will increase by 54% from April 1st 2022."

It seems like even they don't know what they are doing.

I then get the following as an option:

Next 1 year v8 Fixed rate contract 12 Months
Early exit fee None Monthly cost £208.55
Bronze Standard - Green Tariff
Additional annual cost + £1,619.09 What will I pay?

To get the actual unit costs I have to click "What will I pay?", and then "See all tariff information", then scroll down to the bottom of the page and finally click on "View rates". It's like they are trying to hide them from you, no one is going to do that for every provider.

Saying that though, I did show me this surprising provider:

Help Beat Cancer Green Fixed SR May 2024 DM3

Gas Unit rate 18.934p per kWh
Standing charge 28.864p per day
Exit fees £100.00
Ouch!

So all the facts and figures are there and they're one maybe two mouse clicks away.

You really think that telling someone "The rates you pay will increase by 54% from April 1st 2022" is correct?

That said, I asked my neighbour about his energy and his words were "I've no idea how they come to the figures they give me, I just have to pay the bill or get cut off!", which kinda says it all really!

Phlik

Astria said:

Phlik said:

Astria said:

Phlik said:

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.

Which comparison site did you use? I've just looked on Uswitch, and the first thing I noticed was this:

"You’re on a standard variable plan. The rates you pay will increase by 54% from April 1st 2022."

It seems like even they don't know what they are doing.

I then get the following as an option:

Next 1 year v8 Fixed rate contract 12 Months
Early exit fee None Monthly cost £208.55
Bronze Standard - Green Tariff
Additional annual cost + £1,619.09 What will I pay?

To get the actual unit costs I have to click "What will I pay?", and then "See all tariff information", then scroll down to the bottom of the page and finally click on "View rates". It's like they are trying to hide them from you, no one is going to do that for every provider.

Saying that though, I did show me this surprising provider:

Help Beat Cancer Green Fixed SR May 2024 DM3

Gas Unit rate 18.934p per kWh
Standing charge 28.864p per day
Exit fees £100.00
Ouch!

So all the facts and figures are there and they're one maybe two mouse clicks away.

You really think that telling someone "The rates you pay will increase by 54% from April 1st 2022" is correct?

That said, I asked my neighbour about his energy and his words were "I've no idea how they come to the figures they give me, I just have to pay the bill or get cut off!", which kinda says it all really!

 
Where did I say that?

I commented earlier in the thread that the switch websites have all the information regarding individual tariffs available, you confirmed they did, one or two mouse clicks away. Yes they might lead with the percentage or dd price (clearly they know their customer base well) but the information is all there.

"To get the actual unit costs I have to click "What will I pay?", and then "See all tariff information", then scroll down to the bottom of the page and finally click on "View rates"."

You then confirm, albeit with a sample of one (your neighbour) that people are too lazy to bother, they pay it and moan about it instead.