National research by Labrador has revealed that consumers are blind to the reality of their energy costs, bills and tariffs. The data reveals that only 12 percent of consumers have paid their energy bills via an actual reading for the last 10 years. Moreover, 46 percent of bill payers have paid for their energy bills via an estimate for the last three years.
After almost 20 years of market deregulation and despite the presence of more than 70 energy suppliers, 80 percent of households still remain with the “Big Six” and less than 20 percent of households have switched in the last 12 months. Further Ofgem statistics reveal that c. five million of the UK’s most vulnerable households are facing an average rise of £57 a year in their 2018 energy bills.
The data – sourced across 2,004 bill-payers nationwide – contextualises the UK’s much documented “broken energy market” against the true state of consumer knowledge surrounding home energy consumption. Unsurprisingly, consumers do not know the reality of their energy costs, bills and tariffs.
Equally, the research reflects nationwide opaqueness around both the financial and operational management of the UK’s domestic energy usage. Standout insights range from the misconception that we are receiving the best deal for our gas and electricity usage, despite less than 20 percent of households switching in the last year, to a distinct lack of knowledge on how much we should accurately be paying across both fuels.
The Energy Profile Report 2018 has unveiled an alarming state of disparity between the official industry statistics defining the true state of the UK’s broken energy market versus consumer awareness of domestic energy consumption. Despite The Labrador’s data revealing nearly 18 million people believe their current supplier is providing them with the best deal for their energy usage, less than one in five households shop around for their energy deals, and the majority of the nation’s customers are still on poor value SVTs with their energy supplier. Framed by a staggering £220 million that has been paid by energy companies in compensation and penalties since 2010 alone, significant responsibility lies at policy, media and consumer level to recalibrate an infrastructure in immediate need of reform.
Founder and CEO of The Labrador, Jane Lucy said Energy is one of the biggest household bills, but less than 20 percent of us switched provider last year. The Energy industry has profited for years as a result, and done nothing but cause confusion and generate misinformation which is making the situation worse. People need a transparent service they can trust, that is committed to work for them. The Labrador is the solution as it takes the guesswork and hassle out of finding a cheap energy deal—from reading a household’s meter to making the switch—leaving no room for error. We use smart technology in order to provide an accurate and personalised service, working with both traditional and smart meter households to remove the onus on the customer to do the work, forever.”