Annual energy statements could save consumers over £1,000
Consumers are being urged to look out for a brand new annual energy statement that could be the key to saving over £1,000 on their energy bills, says uSwitch.com, the independent price comparison and switching service.
Energy suppliers have from tomorrow (1st July) until 1st December to provide customers with their first annual energy statement, detailing their current energy plan, yearly consumption and how much they can expect to pay for their energy over the next year. The statement also includes details such as any discounts that are available along with a reminder about switching to a better deal.
The move, part of Ofgem's push to help more people benefit from the competitive market, could open the door to consumers saving more than £1,000 on their energy bills over the next 5 years. According to uSwitch.com data, households who regularly switched to the cheapest online plan in the market paid £4,171 for their energy over the last 5 years. However, the average standard plan customer shelled out £5,253 during the same period - £1,082 more. If consumers use the new annual statements to switch at least once a year, they too could potentially shave a healthy £1,000 off their energy bills.
Ann Robinson, Head of Consumer Policy at uSwitch.com, says: "These annual statements will play an important part in getting more consumers to take advantage of the competitive market. Not only will they help consumers manage both their finances and energy better, but the statements will provide households with all the information they need to check their current rate and energy plan. This will make it easier for them to save money by switching.
"Consumers should treat these annual statements as an annual reminder to make sure they are paying the cheapest price for their gas and electricity. People who did this regularly over the last 5 years saved themselves over £1,000 - this is not to be sniffed at and it would be great to now see more households following suit."
What information is on an annual energy statement?
Ofgem says that annual energy statements must contain:
the name of your tariff
how much energy you've used in the past 12 months in kilowatt hours (unless you've been with your energy supplier for less than 12 months)
the estimated cost in pounds per year, if you stay on the same tariff, the tariff stays the same (e.g. no price rises or price cuts) and if you carry on using the same amount of energy
the main terms and conditions of your tariff
details of any premiums or discounts that apply to the tariff, or that you may be able to get if you switch to another tariff or payment method with the same supplier (e.g. if you paid by cheque and there was a direct debit discount available, your energy supplier would have to tell you about this on you annual energy statement)
a reminder that you can switch your gas and electricity supplier and advice on how you can do so.