Households need to translate utilities bills before making savings

Even the least savvy consumer probably now knows that, should they feel they are being overcharged for their gas or electricity bills, it's relatively simple to get online and switch utilities suppliers for a better deal.

However, in order to make such a move, householders first need to have an appreciation of what exactly it is they are paying for - after all, how can they tell if they are being overcharged or even undercharged if they can't understand their bills?

Sadly, it would appear that perplexity is the default setting for many people, with the most vulnerable members of society, in particular the elderly, largely confused by jargon-heavy bills with more small print and add-ons than ever.

According to new research carried out by the consumer group Which?, one in four utilities customers regularly struggle to comprehend how much they actually owe their suppliers - hardly surprising given that they find themselves faced with terms such as 'calorific value' and 'normal primary units' once a quarter.

As a result, the independent market watchdog has launched a new campaign aimed at making bills more user-friendly, with the view being that knowledge will give customers power to assess their energy outgoings and switch utilities suppliers if necessary.

The editor of Which? magazine, explained: "Consumers aren't going to be able to reduce their energy use or find the best deal if they don't understand what's going on.”

"Bills need to be much clearer, and better customer service from the energy companies wouldn't go amiss either."

In response, the Energy Retail Association (ERA), which represents the 'Big Six' UK suppliers, has argued that it is working to improve the clarity of charges, with just a minority of the 200 million bills sent out each year generating complaints for being overly-complicated.

However, while consumer groups are now getting the support of MPs in their campaign to clear up the confusion, households have also been advised to wise-up to the tricks being used by suppliers and brush up on their gas and electricity vocabulary.

If you would like to know more about utilities why not ask AnswerBank Home and Garden.