This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-26566667
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Energy bills 'still confusing', says Which? | Energy bills 'still confusing', says Which? |
| (about 7 hours later) | |
| New simplified energy bills are still too confusing, the consumer group Which? has claimed. | New simplified energy bills are still too confusing, the consumer group Which? has claimed. |
| In a survey of 500 people, it found that only 35% of picked the cheapest deal, when presented with bills in a new format. | |
| The new bills - brought in by the energy regulator Ofgem - are designed to make charges easier to understand. | The new bills - brought in by the energy regulator Ofgem - are designed to make charges easier to understand. |
| Ofgem defended the changes, saying that Which? had failed to consider how all its reforms will work together. | Ofgem defended the changes, saying that Which? had failed to consider how all its reforms will work together. |
| Since January, energy suppliers have had to advertise their tariffs in terms of two rates: | Since January, energy suppliers have had to advertise their tariffs in terms of two rates: |
| The first bills containing these tariffs will be sent out from 1 April. | The first bills containing these tariffs will be sent out from 1 April. |
| Previously, not all companies quoted a standing charge, and some quoted two tiers of unit rates, a higher and a lower rate. | Previously, not all companies quoted a standing charge, and some quoted two tiers of unit rates, a higher and a lower rate. |
| 'Too complicated' | 'Too complicated' |
| But the Which? survey showed widespread confusion when consumers tried to work out which was the cheapest rate on the new-look bills. | But the Which? survey showed widespread confusion when consumers tried to work out which was the cheapest rate on the new-look bills. |
| Even amongst those who used a calculator, only half managed to spot the best deal. | Even amongst those who used a calculator, only half managed to spot the best deal. |
| Consumers not only need to so some mental arithmetic to work out the cheapest deal, they also need to know how much gas or electricity they use in a year. | Consumers not only need to so some mental arithmetic to work out the cheapest deal, they also need to know how much gas or electricity they use in a year. |
| "In spite of Ofgem's tariff reforms to simplify the market, consumers are still failing to spot the cheapest deal because energy pricing remains too complicated," said Richard Lloyd, the executive director of Which? | "In spite of Ofgem's tariff reforms to simplify the market, consumers are still failing to spot the cheapest deal because energy pricing remains too complicated," said Richard Lloyd, the executive director of Which? |
| The consumer group would like to see a single flat rate for energy, as happens with the price of petrol. | The consumer group would like to see a single flat rate for energy, as happens with the price of petrol. |
| Right Deal | Right Deal |
| In an attempt to provide that, Ofgem will introduce a Tariff Comparison Rate (TCR) on bills from April, similar to an APR comparison on a loan. | In an attempt to provide that, Ofgem will introduce a Tariff Comparison Rate (TCR) on bills from April, similar to an APR comparison on a loan. |
| This is designed to combine the Standing Charge and the Unit rate into a single measure. | This is designed to combine the Standing Charge and the Unit rate into a single measure. |
| For example, bills might show a TCR of 15.24p/kWh, which consumers should be able to compare directly with other suppliers. | For example, bills might show a TCR of 15.24p/kWh, which consumers should be able to compare directly with other suppliers. |
| In the Which? survey, two-thirds of consumers were able to identify the cheapest rate, using the TCR measure. | In the Which? survey, two-thirds of consumers were able to identify the cheapest rate, using the TCR measure. |
| But Which? warned that TCR is calculated only for a medium user of energy, so it does not always provide an accurate guide for switching supplier. | But Which? warned that TCR is calculated only for a medium user of energy, so it does not always provide an accurate guide for switching supplier. |
| Ofgem said it had conducted widespread research amongst consumers before deciding on its reforms. | Ofgem said it had conducted widespread research amongst consumers before deciding on its reforms. |
| "We are confident that our reform package will make the market simpler, clearer, and fairer for consumers, and make it much easier for them to choose the right deal," said Philip Cullum, Ofgem's Consumer Partner. | "We are confident that our reform package will make the market simpler, clearer, and fairer for consumers, and make it much easier for them to choose the right deal," said Philip Cullum, Ofgem's Consumer Partner. |