The one definite plus energy customers can take from the OFGEM report on energy prices in Britain today is that home insurance comparison sites can save consumers considerable amounts of cash.
Too much choice, not enough information
The report roundly condemns the big players in the energy market for making their tariffs so confusing and for the sheer weight in numbers of the different tariffs and offers that are available to consumers. The report reckons that possibly only 10% of homeowners are on the best, most economic rate for their circumstances, with the rest of us having been bamboozled by TV adverts or cold callers knocking at our door. There are plenty of course who just can’t be bothered to change as it all seems so bewildering. And who can blame them. According to the report, OFGEM reckon there are around 300 different tariffs on the market for gas and electricity at the moment, which is over 60% more than there was less than 3 years ago.
Energy firms hit back
However, as always there are two sides to an argument and the energy providers are countering the claims by saying they are simply catering for the diverse needs of a population of more than 60 million souls. They claim that some customers are more interested in green issues than actual cost, whereas others want a fixed rate so that they can plan ahead. Others like to submit their own readings while others want to pay by direct debit. They say they are just giving consumers more choice.
Hard to understand
There is little doubt though that understanding an energy bill is more difficult today than ever before. It is certainly nowhere near as simple as say a home insurance guide. There are usually at least three different tariffs within one scheme with the first tariff commonly being the most expensive and then different tariffs introduced depending on the amount of energy consumed. Because of this low users usually find that they pay a lot more for their energy than those more profligate.
Will the report give me cheaper bills?
It is probably good for consumers that at last a watchdog is bearing its teeth but hopes that the result will be cheaper energy prices are too much to expect. All market observers reckon there is only one way gas and electricity prices are going and it doesn’t rhyme with blower!
Tags: Energy firms, Home Insurance, OFGEM