Energy News

Brits want clearer and simpler info from energy suppliers

Wednesday 8 February, 2012

By Martin Fagan

Ofgem says suppliers should demystify consumer information as E.ON improves its direct debit policy.

New consumer research supports the need for clearer, easier to understand information from energy suppliers, according to Ofgem.

The energy regulator found consumers wanted clear language on pricing and energy use information and, to make comparing prices easier, many also wanted Ofgem to limit the number of tariffs energy companies can offer.

The research also showed consumers want help from energy companies to find the right tariff for them and assurances that switching tariffs will actually save them money.

Ann Robinson, director of consumer policy at independent switching service uSwitch.com, said: "We welcome this latest announcement by Ofgem. Consumers have been crying out for simpler, clearer and easier bills and information from energy suppliers for years.”

In a separate announcement, and as a response to consumer pressure, E.ON has announced an overhaul of its direct debit policy.

Consumers who signed up with the company in the latter half of the year were unhappy they were unable to build up enough credit over the summer months to cover their higher winter energy use.

This meant some customers needed to pay disproportionately high monthly direct debit amounts for their first few months after joining E.ON. The company has now changed its direct debit process so that any customer who joins in the second half of the year is given up to 18 months to get their direct debit account to a zero balance.

Tony Cocker, chief executive of E.ON, said: "We recognise that our direct debit policy was causing problems for some of our customers and so this is the first step in improving this.”

Responding to E.ON’s change in its direct debit policy, Audrey Gallacher, director of energy at watchdog Consumer Focus, said:

“We welcome the move by E.ON to change its direct debit policy. It’s a victory for common sense and hopefully the first of many steps the company will take in its Reset Review programme to improve the experience of its customers.

“With this in mind, we call on E.ON to look again at doorstep selling, which it continues to do despite all of its major competitors stopping the practice. If E.ON is serious about listening to customers then it must explain why it is the only one of the ‘big six’ to still sell energy on the doorstep.”