Annual Energy Statements from Suppliers

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Ofgem introduced new rules from the 1st July 2010 that means energy suppliers now have to provide annual energy statements to all residential customers. Energy providers have until 1st December 2010 to provide the first energy statement to customers. The aim of this new ruling from Ofgem will highlight to customers what their current annual spend is on energy, making it easier to see whether savings can be made by switching to an alternative supplier.

Many customers are unaware of what tariff they are currently on and what their annual energy consumption is, making it difficult to make accurate comparisons with other energy suppliers on comparison websites such as UKPower.

The new energy statement means that customers will have all the information they require to hand in order to make comparisons, and evaluate whether switching to a new supplier would save them money, meaning consumers are able to take advantage of the competitive market.

What the new statements must include

  • The name of the tariff the customer is currently on, including tariff end dates
  • The last 12 months energy consumption in kwh’s (if the customer has been with that supplier for less than 12 months then the consumption to that date and the period that consumption covers).
  • The cost of your energy for the last 12 months and a forecast for the next 12 months based on the same consumption and same tariff.
  • The main terms & conditions of the tariff i.e: any cancellation charges if the customer left the tariff before the end of the contract term.
  • Details of any discounts applied to the tariff for example, any discounts by paying by Direct Debit or by managing your account online and if this is not currently done by the customer then the supplier is obliged to point this out on the annual statement.
  • A reminder that you can switch energy suppliers and advice on how to do this, however energy suppliers are likely to suggest their own cheaper tariffs.

What the new statements won’t tell you

  • Whether you are on an IGT (independent gas transporter), which usually means there is a supplementary charge you have to pay to suppliers because your gas pipes are not provided by the National Grid.
  • What other tariffs are available in the market – other than their own, for obvious reasons.

How to use the new annual statements

Customers should study the statement when they arrive so that they are fully aware of exactly what tariff they are on, when it comes to an end if applicable and any cancellation charges that may be applied if they decided to switch to an alternative tariff and/or supplier before this end date.

They should then use this detailed information as a tool to remember to check whether they are on the best deal available to them at that time. As the statements will be provided annually it’s worth using their arrival as a reminder to check at least once a year for the most competitive tariff at UKPower.