Energy News

Energy customers oblivious to how much they pay

Wednesday 24th August, 2011

By Martin Fagan - editorial@consumerchoices.co.uk

40% of customers clueless about the size of energy bills, with some paying £400 more than necessary

Brits are completely unaware of the cost of the gas and electricity they use and many are paying over the odds for their energy, according to new research.

Despite the fact that five of the “big six” energy providers have increased their prices in the last three months, the research discovered that almost 40% of Brits say they have no idea of the actual total amount they pay each year for energy.

For most people, gas and electricity costs are the second largest monthly outgoing following a mortgage or rent payment. Of those surveyed, only 38% knew exactly how much they paid for their annual energy usage.

According to moneysupermarket.com, who conducted the survey, consumers who are unaware of the price they pay for gas and electricity could be paying £411 more than they need to, with the most expensive tariff coming in at over £1,391 compared to the current cheapest at around £980.

“With the current spate of price hikes taking the average bill to record highs, customers should be on their game and know exactly how much they are paying in gas and electricity charges each year,” said Scott Byrom, utilities manager at moneysupermarket.com.

“For a medium user, the message is simple: if you pay more than £37 for your electricity and more than £51 for your gas per month, then you are potentially paying too much and should be looking to switch to a better tariff.”

With further statistics showing that only 17% of energy customers switch their tariffs each year, the vast majority of bill payers could benefit financially from finding out which tariff is best for them and switching to it.