Customers being overcharged by about £200 on fuel bills

Customers of the big six energy suppliers are paying about £200 more per year than they should on their fuel and electricity bills. The Competition and Markets Authority released the results of their review, and as many people expected, the results are not good for the suppliers.

Families across the UK have been wondering why their bills have not been decreasing with the cost of oil. Well, people were correct. They were being overbilled by their company. No matter which supplier they use, whether British Gas, Npower, SSE, or another, they were being charged too much money.

Many people have been paying too much for years. As the providers have increased their gas and electricity rates by 25 to 30 per cent since 2009. So even thought oil prices are lowest since 2008, their utility bills are not going down.

There are two main reasons for this. One is the companies are not passing on the reduction in fuel costs to customers as quickly as they should. The other reason is customers are not changing to lower fixed rate deals but they are instead sticking on standard tariffs.

In a bit or irony, the people that are worst of are the big six’s most loyal customers. It is those who remained on standard tariffs are facing the largest increases in their energy bills. Studies show that many of these customers who did not switch are less well-off and educated. They just do not understand how to shop around for savings, even though they are likely to describe themselves as struggling.

Some people think it is a hassle to switch, when in fact it is not and the process is simple. Energy Watchdog Ofgem says that people such as the disabled or single parents often do not have the information they need to make the change. So the lack of education on how the energy marketplace works is very poor.

Data from Competition and Markets Authority also shows poor customer service. Other customers have been faced with billing problems and issues on their payments not being applied on time. So the general service levels from the companies is very poor. So the list of problems in dealing with the big has been increasing.

Experts think that the Big Six could cut their prices by up to 10%. This would be in addition to the recent reductions that some have implemented. The staff at the Competition and Markets Authority says those cuts could easily be made without any impact to service. In fact, some experts think it may end up making the companies more efficient as they would need to plan better. It make add incentives in the marketplace to ensure they compete on price.

No matter who their supplier is, customer’s should always shop around for a better deal on their fuel bills. There are many independent suppliers who may help people save money, or they can even switch to another big six company for a better rate.