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Energy bill wording fuelling debt problems

Energy bills filled with misleading and confusing jargon that make them harder to understand could be fuelling debt problems.

The difficult language chosen by gas and electricity companies to make understanding bills more difficult has been questioned, after consumer association Which? said that customers were frequently left confused.

They have asked for a simple-to-understand summary box to be placed on bills which would cover all key information and make bills easier to decipher.

With many people not knowing exactly if they are receiving a good deal or not from providers, they could be placing undue pressure on debt management problems by paying over the odds for services.

Almost 4,000 Which? members were surveyed and results showed that gas and electricity bills were more difficult to understand than other household bills, like credit card and mobile phone demands.

Martyn Hocking, editor of Which? magazine said: “Consumers are not going to be able to reduce their energy use or find the best deal if they do not understand what is going on.”

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “Customers aren’t in a position to be able to find a more competitive deal and save money that could be used to help them get out of debt if they don’t understand what’s going on.

“Plus, they won’t be able to save money and the environment by cutting back, as they don’t understand the usage figures. It’s baffling.”

In response to the claims by Which?, ERA’s chief executive Garry Felgate said: “Energy companies issue over 200 million bills each year and suppliers continually work to improve the clarity of information to customers.”

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