Petition calls for simpler energy bills

28/08/2009

Over 7,000 people have signed up to a petition calling for energy bills to be simplified after a test found that 86 per cent of consumers failed to correctly calculate their fuel charges.

The challenge was organised by comparison service uSwitch.com, which gave consumers a mock-up of an energy bill with the sub-totals blanked out and asked them to calculate the missing numbers and the overall total.

Despite being allowed to make notes and use a calculator, just 14 per cent of those who took part came up with the right answer.

Ann Robinson, director of consumer policy at uSwitch.com, said it is "vital" that consumers make their voices heard about overly-complicated gas and electricity charges.

"You shouldn't need to be an A-grade student to be able to understand your energy bills. It's deeply worrying that only 14 per cent of people have passed what should be a straightforward test," she commented.

Industry regulator Ofgem has said it plans to review energy suppliers' debt practices to ensure companies are doing everything possible to help households having trouble paying their bills.

The watchdog's figures show that disconnections of domestic energy customers fell by 30 per cent last year to 5,890 cases.

EuroDebt director Kevin Still said: "EuroDebt welcomes the Ofgem review of energy provider debt practices over the coming months where suppliers have obligations in dealing with vulnerable customers who are experiencing financial difficulties.

"It is encouraging in particular that the number of gas customers disconnected for debt fell 48 per cent to just under 3,000. Despite this, at the end of 2008, there were 1.3 million electricity customers and 0.8 million gas customers repaying energy debts. Both Ofgem and EuroDebt expect to see these figures increase through the recession.

"As part of a Debt Management Plan or IVA, EuroDebt would prioritise arrears repayments of utility bills, council tax, rent and mortgage. It remains the case that aggressive collection activities by unsecured creditors and their collection agents often persuades vulnerable clients to pay them ahead of priority creditors."

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle,

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