New rules published by Ofgem on July 1 stipulate that energy providers must now produce improved energy bills and annual statements, which provide more in-depth details on energy use.
All gas and electricity bills will now include details of the exact name of the customer's tariff, as well as comprehensive information of their past year's energy consumption. An indication of how much a customer is likely to spend over the next 12 months, based on their current consumption and current prices will also be provided.
Customers will also be provided with a separate annual statement, which will include details of any premium or discount that applies to the customer's tariff when compared with the supplier's standard monthly direct debit deal.
These comparisons will not include references to competing suppliers, who may be able to offer a better deal, yet the annual statement will include information on how to change supplier.
All households will receive this statement before 1 December, but precisely when depends on their supplier's billing cycle. The aim is for households to have a much better idea of their energy consumption, as well as helping the public to monitor how much they are spending. This change will not only help each customer decide whether or not they wish to change energy supplier to get a better deal, but will also aid them in working out whether or not renewable energy is a viable avenue to go down.
By providing details of annual energy consumption, the energy supplier will give the customer some idea of what size of solar photovoltaic system that would be looking at in order to offset their carbon emissions. This information will help understand how much energy can be saved by making small changes around the house, as well as how much money can be saved annually by installing a solar PV system.
Suppliers will now have to be much clearer when marketing temporary discounts and online deals.
Ofgem have further announced that regulations introduced last September following its investigation into the energy supply markets have resulted in suppliers cutting unjustified premiums for prepayment meters compared with direct debit.
To view the changes in depth please click here.