New energy statements failing to make impact

A recent survey that was carried out has suggested that new energy statements that were launched to make the energy market more competitive and improve understanding of payments for consumers are failing to have the desired impact. The survey was carried out by the price comparison service uswitch.com and involved questioning consumers about the new annual energy statements that have been brought in.

However, despite the aims of the annual statements is appears that consumers had either not received the new statements or may have received them but did not realise that they had received them. The statements are supposed to have been delivered to all homes in the UK and are meant to explain the various discounts that are available on different tariffs so that consumers can get the best deal possible on their energy.

Any household that hasn’t yet received one of these statements is due to receive one soon, but many may not even realise that they have received their statement. One industry group has described the statements as a ‘huge undertaking’. Suppliers were told to start sending out the first of these statements by the end of last year by the energy regulator Ofgem. The aim of the statements is to make consumers more aware of their energy use and why they may be paying as much as they are, with the hope of encouraging more competition in the market.

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 do not think they are coming up to scratch. The vast majority of households will have received an annual statement by now, but only 37% recognise that they have done so. The statements appear to be poorly labelled, difficult to understand and do not stand out from ordinary energy bills.”

Tags: industry group, end, energy market, price comparison service, new energy, consumer policy