Energy suppliers penalising efficient customers

A new study conducted by Confused.com has found that major energy suppliers are charging efficient customers more and failing to reward them for their cost-effective use of energy.

Confused.com, the price comparison website, has researched prices among major energy suppliers and found that half of the best-buy tariffs available are ‘standing charge’ tariffs. This means that a fee is applied even before any gas or electricity is used by their customers.

In addition, some energy suppliers also calculate bills according to a tiered unit system, with the first units in each quarter being the most expensive. This billing gives no particular benefit to energy efficient customers.

To find the best energy deals you can use a price comparison website such as Confused.com and you can learn more about switching energy suppliers with our ‘Switch energy supplier – how easy is it?’ article.

Gareth Kloet, head of energy at Confused.com, said. “(U.S. President Barrack) Obama and (UK Prime Minister Gordon) Brown are amongst the world leaders in Copenhagen this Friday as the Climate change conference reaches its climax but reducing carbon footprints is as much about the small changes that energy suppliers and consumers can make as it is about protests and negotiations with world leaders.”

“I believe energy providers have got it all wrong as far as tariffs are concerned.  In terms of standing charges, customers are charged the same for sitting in a house with just candlelight for heat and light, as customers who have the radiators on full blast, the fires roaring and all their lights on. The remaining four tariffs have no standing charge but the unit prices for both gas and electricity are tiered, with the first units each quarter being the most expensive, what sense does that make?”

Kloet explained that at a time when everybody is pushing the green agenda and climate change is being discussed at the highest level, the present system is not a responsible way to do business. 

“Energy companies should consider reversing this tariff structure with the penalty being on the higher end consumption and reduced rates for more efficient usage,” he said.