Ofgem now require UK energy suppliers to send annual statements to their customers. The purpose is to help you understand exactly how much gas and electricity you’re using, how much you’re paying for it, and to detail your tariff and associated discounts. Plus the statements should contain advice on how to switch tariff or supplier. In theory at least, this additional transparency is great news for the consumer. Here's a summary of what you'll be getting…
Who gets one?
Every household should have received one of these statements by December 2010.
What should be included on it?
Ofgem have told suppliers that the following information should be included:
- The exact name of your current tariff
- The total kilowatt hours (kWh) you have used over the past year
- An estimation of how much you’ll spend if you stay on the same tariff and use the same number of kWh over the course of the next year
- The terms and conditions of your current tariff (for example, if there are any cancellation fees)
- Details of any savings you can make by switching to another tariff, and a reminder to do so
Example statements
Both e.on and npower have been kind enough to supply Confused.com with example statements which you can download in PDF format.
Download e.on’s example statement (67 KB, opens in a new window)
Download npower’s example statement (97 KB, opens in a new window)
So what does this mean for me?
Your energy supplier has more tariffs available than you probably realise, and which tariff you’re on will affect how much you pay. For example, if you and your neighbour are both with British Gas – and let’s say you’re on their standard tariff and your neighbour is on an online tariff – you will be paying more for your energy.
This is all due to the price per kWh you use. A kWh is the number of units you use per hour (so kilowatts PER hour). At the time of writing, the average price per unit of electricity used on a standard tariff is just over 13p. However, the average for an online tariff is just over 10p.
Your supplier should tell you how many units of gas and electricity you’ve used during the past year. They should also inform you how much it should cost over the next year if you use the same amount of energy and remain on the same tariff, compared with how much it would cost on a cheaper tariff.
If there are any other energy terms you’re not familiar with, check out our energy jargon buster.
What if I think my supplier’s got it wrong?
Have you been providing your supplier with regular meter readings? Until smart meters are installed in every home, the only way to make sure your supplier is holding accurate information about your usage is by giving them regular readings, otherwise they’ll be using estimated readings. We recommend you read your meter at least once a quarter. If you’re not sure how to do this, check out our guide on how to read your meters. If you think your statement is inaccurate, take meter readings straight away and inform your supplier.
What are the pros and cons of annual statements?
These statements are great because they give you all the information you need to check you’re on the right deal for your circumstances. As a result, they will basically serve as a yearly reminder to shop around. And here at Confused.com, we’re all in favour of that!
Where the statements fall short is that your supplier will only tell you how to save money if you stay with them. They also don’t give you information about their online tariffs, which are the cheapest available.
How can I compare against other suppliers?
You should use your annual statement in much the same way you do when your car insurance is up for renewal – as a reminder to shop around. Now you know the name of your tariff and how many kWh (or units) you use per year, you’re fully equipped to use our gas and electricity comparison service to make sure you’re on the right deal. You already know your post code, the name of your supplier and how you pay for your energy – so just tap in this information and away you go!
What if I haven’t received a statement?
Ofgem have put rules in place that all of the energy suppliers must send their customers one of these statements. They’re breaching these rules if they haven’t sent you one, so give them a call and they should send one out to you. If they still don’t, you have every right to contact the Energy Ombudsman. See our guide on how to complain to your energy supplier for more information.
