Hyyper Energy Solutions
Hyyper Energy Solutions

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Consumers scratch their heads over electricity bills in UK

 

People often find energy bills difficult to decipher, as industry regulator Ofgem highlighted last year in a report

 

Companies going green

A new survey shows that two thirds of UK companies now monitor their environmental performance.

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Companies going green

A new survey shows that two thirds of UK companies now monitor their environmental performance. The main factor behind this trend seems to be concern provoked by last year's rising energy prices and widespread anticipation of future environmental legislation.

Consumers scratch their heads over electricity bills in UK

 

People often find energy bills difficult to decipher, as industry regulator Ofgem highlighted last year in a report. It found that tariffs and pricing offered by the big six energy companies "bamboozled" customers and lacked transparency.

Hundreds of tariffs were available using a two-tier pricing structure, where the first set of units a customer uses cost a higher price. The price is then lowered after a certain amount of energy is used. It was made even more confusing because each supplier had a different threshold and different prices, making comparison difficult.

Ann Robinson, of the one of the UK's largest consumer groups, said that under the two-tier system, lower than average energy users were getting an unfair deal.

E.ON, npower and Scottish Power are still offering the two-tiered pricing to new customers, but all of the "big six" are expected to move across to offering one fixed price for a unit of energy plus a standing charge.

And why don't the utility firms have no standing charge and just a single unit price?

Suppliers' trade association, Energy UK, says this is impossible because of the cost of the meters and network that supplies the gas and electric to the home. The cost still applies even for customers who use tiny amounts of energy.

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