Sir, – John Crotty (Letters, January 17th) laments the fact that media outlets continue to report energy price changes in percentage terms and it would be more helpful if unit prices were reported instead.
Indeed it would be much more helpful; however, media outlets are merely reporting the details the energy suppliers provide.
The manner in which suppliers report and bill prices appears expressly designed to obscure the real prices and make price comparisons more difficult.
How does one compare a larger contract discount off a smaller so-called standard unit rate, with a smaller discount off a larger so-called standard rate, particularly when each supplier has a different standard rate or indeed multiple different standard rates?
Due to a large reduction in the percentage discount, for a contract renewal, combined with smaller percentage reduction in the standard unit rate, my then-supplier recently contrived to present what was actually a price increase as a price reduction.
The Suppliers’ Handbook issued by the Commission for Regulation of Utilities requires suppliers to comply with many details including that “Suppliers must adopt a fair and transparent approach to the marketing and advertising of products and services”, “easy to understand complete, accurate, transparent and not misleading” and for billing “Clear calculations of the amount due for electricity or gas supplied, (giving units, multipliers, rates, etc,where appropriate)”.
These requirements are widely ignored. Until suppliers are required to comply fully with the letter and the spirit of the Suppliers’ Handbook I can see no prospect of clarity of unit prices being reported. – Yours, etc,
DAVID JACOBS,
Rathfarnham,
Dublin 16
Sir, – John Crotty is correct in his observation that it is difficult for consumers to determine which energy supplier is offering the cheapest service.
This is not unusual in market-led sectors where companies seek to present their goods and services in the most appealing light. The energy sector is a good example of this. Comparing unit prices offered is not a true guide when trying to determine which company is offering the cheapest service given that hidden charges are never mentioned. This is a consequence of poor regulation of the sector. Ready access to energy is vital to allow all citizens enjoy a modicum of ease as they navigate life. In this context, one would have thought that the Government would take a direct interest in what citizens are being charged for energy and ensure that these charges are clearly shown, as low as possible and justifiable. An obvious area that needs to be examined is the amount of money that is being spent by suppliers on advertising. This outlay eventually finds its way onto the bills of customers. The Government could intervene and bar all glossy advertising only allowing each company permission to advertise the charges they levy in a manner that customers can quickly understand and compare.
This should be based on a set average household usage with each company showing their standing charges, unit cost and any other and the gross cost of meeting the bill for the average home. – Yours, etc,
JIM O’SULLIVAN,
Rathedmond,
Sligo.