Energy bills must show pence per kilowatt of tariffs

Household bills and adverts for energy tariffs must now include information to make comparing electricity and gas prices easier. As of yesterday, energy suppliers have to show the pence per […]

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By ELN reporter

Household bills and adverts for energy tariffs must now include information to make comparing electricity and gas prices easier.

As of yesterday, energy suppliers have to show the pence per kilowatt of a tariff – based on the average energy use – on domestic bills.

This price, known as the tariff comparison rate (TCR), is meant to let people compare rates in one glance in the way the APR allows you to compare the interest rate of loans.

The price must include the basic cost of the tariff plus the standing charge and VAT.

Regulator Ofgem is forcing suppliers to make the change so energy bills are easier to understand.

Bills must also show “personal projection” or estimate of how much you will pay on any tariff, based on actual usage, as well as an information label with key facts about your energy tariff.

A spokesperson for Ofgem said: “The tariff comparison rate is part of our reforms for a simpler clearer, fairer market.”