A recent survey by the National Literacy Trust and Octopus Energy has shown that a quarter of young Brits struggle to understand their energy bills. As a result, many 18-24-year-olds are paying far more for their energy than required.
Your energy bill tells you exactly how much you need to pay for your gas and electricity each month and it’s based on your usage. The amount of energy you use is calculated using a measure called kilowatt hour (KwH), but the exact rate you pay will depend on the type of deal you’re on, which is known as the tariff. A number of different tariff types are available, including fixed deals and variable options.
If you haven’t switched provider in a while, then it’s likely that you’re on a standard variable tariff (SVT). These deals are often the most expensive on the market. As a result, it’s worth running an online energy comparison and switching to a fixed deal. Taking this simple step can save you up to £300 a year.
- Start saving on your energy bills today: switch supplier in only a few minutes
Terms ‘baffle younger customers’
If you want to learn more about the tariff you’re on and why your gas and electricity bill is as high as it is, then it’s vital that you understand the terms used on your bill.
However, the new study shows that the terms currently used on energy bills baffle young customers. Due to this, many people do not understand their bills or do not check them at all.
Overall, the study showed that 91% of those aged between 18 and 24 couldn’t correctly identify six key energy bill terms. By contrast, 47% of all respondents were able to identify all of the terms and a whopping 79% of over 65s knew and identified all of the terms.
The terms included:
- Dual fuel – When your gas and electricity is supplied by the same provider
- KwH – A measure of how much energy you use
- Standing charge – A fixed daily amount paid by customers. It covers the costs your energy supplier incurs to get gas and electricity to you
- Tariff – The type of deal you’re on
- Unit rate – How much you pay for each unit of energy
- VAT – A sales tax added to the bill and paid to the government
Due to the fact that many customers do not understand the jargon and language used in energy bills, Greg Jackson, chief executive of Octopus Energy, believes that customers can't be expected to know if they are getting a good deal. Meanwhile, Jonathan Douglas, chief executive of the National Literacy Trust, said the language on energy bills should be simplified to support those who struggle with reading.
Switch and start saving today
If you’re currently on a standard variable tariff or you’d just like to switch to a great new fixed-term deal, then run an online energy comparison today.
By providing a few details about your home and your energy use (you’ll find all the information you need on your latest energy bill), you’ll be shown a great selection of energy deals from the UK’s best energy suppliers.
As well as showing you the best energy deals in your area, you’ll also be able to filter the results and compare providers. You can then select the best tariff for you and allow your new provider to handle the switch. The whole process only takes a couple of minutes and you can save hundreds of pounds.
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