Consumers 'confused' about energy tariffs

Category: Gas and electricity
Date: 5/14/2009

The variety of options by which consumers can pay for utilities is creating problems, an expert has noted.

According to Audrey Gallagher, head of company performance at Consumer Focus, prices can vary greatly according to how energy bills are paid and this makes it "difficult for consumers to navigate".

She noted that understanding this can be particularly complicated when attempting to carry out effective comparisons.

Ms Gallagher's comments come after Which? recommended that utility bills and tariffs be simplified, as it found that seven out of ten find the number of gas and electricity options confusing.

"Consumers want flexible products that suit their lifestyle. However, there is concern that some energy tariffs have become over-complicated, leading to consumer confusion," said Ms Gallagher, adding that concerns have also been raised over the possibility that firms are deliberately misleading customers.

Regulator Ofgem recently announced a consultation over measures that include the provision of a standard annual statement.