One in 20 clueless about energy bills

Fool.co.uk is calling on utility companies to make bills easier to understand. One in 20 people (5%) is so bewildered by their bills that they don't know what they mean. A further one in 20 (6%) never studies their bills at all, and around half (56%) claim to have a rough idea of what their quarterly invoice means.

One in three (33%) goes through their bills with a fine-tooth comb. But the findings show that checking your gas and electricity bills on their own does not necessarily improve your knowledge about saving energy. Those who claim to know everything about their bill are no more aware of how much it costs to use common household appliances than the rest.

Switch off your telly and have three extra showers a month

The typical consumer reckons a 10-minute shower will cost 42p, and leaving a television set on standby overnight wastes 25p. But showers costs 12p a pop and not switching off your telly at the mains will set you back 1p a day.So, switching off your telly completely could pay for an extra three showers a month.

Consumers also think it costs 7p to boil a kettle. But the true cost of making a cuppa is much less than that - it's only one pence. So, the savings we make from boiling only what we need is not quite as big as we think.

David Kuo, Head of Personal Finance at Fool.co.uk, says: "Scrutinising quarterly gas and electricity bills is the first important step to saving money on utilities. By confirming that meter readings are accurate and switching to cheaper providers will help you avoid being overcharged.

"Beyond that, comparing your bills with similar houses in your neighborhood could identify if your home is energy efficient. If it isn't, then consider applying for Government grants to help pay for loft and cavity wall insulation.

"Finally, work out how much domestic appliances cost to run. It's pointless skimping on a cup of tea but brushing your teeth in the shower. That's tantamount to taking the seeds from a melon and throwing away the fruit."