Energy News

Eight out of 10 householders unaware of their tariff

Tuesday 18 March, 2008

By Dan Drage

In a survey conducted by the Energy Saving Trust, 80% of those questioned did not know their energy tariff or the amount of gas and electricity they consume.

Additionally, over a third of the survey’s subjects admitted to finding energy bills the most confusing. Subjects confessed that energy bills are ‘twice as confusing’ as phone bills, and ‘three times more confusing’ than bank statements and credit card bills.

55% of the subjects surveyed expressed an interest in having a ‘smart meter’ installed on their property, a device that allows for the monitoring of energy consumption in the home. A smart meter can help householders pinpoint the appliances that are the most expensive to run.

According to the Energy Saving Trust, by fitting a smart meter, most households could shave at lease 5% from their utility bills, a total nationwide saving of £1.2billion a year.

Philip Sellwood, chief executive of the Energy Saving Trust, criticised the convoluted billing methods of the energy suppliers:

‘The lack of transparency surrounding energy usage is one of the biggest problems holding back Britain’s fight against climate change. Without the uptake of smart metering, this situation is not going to change anytime soon.’

Chris Eagle, commercial manager at EnergyChoices.co.uk, urges consumers to follow his checklist:

‘First, if you don’t know which tariff you’re on, you need to check. Most of you will be on a standard tariff, and you can save a considerable amount of money by switching to an online tariff and paying your bill by direct debit, so consider both of these options. Finally, check your bill with a fine toothed comb. If your energy supplier is using estimations to calculate your bill, then you may have been overcharged in the past. Send your meter reading to your energy supplier today.’

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