Power bills so complex even accountants are left baffled

ENERGY tariffs are so complicated even an accountant could not calculate how much they should pay, an investigation by Which? has revealed.

The consumer champion asked 36 people, including a solicitor, an engineer and an accountant, to work out their domestic energy bill using nothing but information from the supplier’s website.

Just one – a company director – could do it. Which? also found that this complexity conceals bad deals for customers.

It said energy tariffs are riddled with tricks and caveats designed to cost people more money, including tiered pricing that penalises low users and discounts that do not materialise if you leave before a set period.

Many people are facing energy price rises of 10 to 20 per cent this winter, meaning it is crucial they can work out the bill they will be paying and find the best deal, Which? said.

Executive director Richard Lloyd said: “People tell us they want to be able to check they are paying the right price for their energy, and when even an accountant struggled to calculate a bill it shows it’s far too complicated.

“There are straightforward ways that consumers can cut their bills – for example by switching to online deals or paying by direct debit. But that won’t help people to pick the best tariff for them. So Which? wants the regulator to stamp out excessively complex tariffs, across the board.”

They asked 36 people to work out in exam conditions what an annual energy bill would cost with a “standard” dual fuel tariff from either British Gas, E.ON or Scottish and Southern Energy.

They also consulted maths expert Keith Pledger, head of mathematics at exam board Edexcel. He said British Gas’s standard tariff was so difficult to calculate that A-grade GCSE students would find it “very challenging” and even A-Level maths students would “struggle”.

“It’s unrealistic to expect the public to be able to find the best deal when faced with such complex tariffs,” he said.

Tory MP Tim Yeo, chairman of the Energy and Climate Change Select Committee, said: “The enormous number and unnecessary complexity of tariffs prevent consumers making easy comparisons and hinder switching. The committee will return to this issue if no action is taken.”

Ann Robinson, director of consumer policy at uSwitch.com, said: “If households are to start managing their energy usage better they need to be given information that they can read, understand and use in a practical way.”

A spokeswoman for Scottish and Southern Energy said: “We are currently reviewing our products and the layout of our bills while working with other consumer groups and Which? to find a simpler way for customers to compare tariffs within a competitive energy market.”

A spokeswoman for E.ON said it was committed to making tariffs “simpler and easier to compare”. She added: “We want to improve confidence in the sector and build greater levels of trust.”

British Gas did not respond to a request for a comment.