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Accountant fails energy bill test

Accountant fails energy bill test

Energy tariffs are so complicated that even an accountant could not calculate how much they should be paying, according to latest research from Which?.

The consumer group asked 36 people including a solicitor, an engineer and an accountant, to work out their domestic energy bill using only the information from the supplier’s website, and a calculator, pencil and paper or Excel.

Only one, a company director, proved successful.

According to Which? the complexity of bills and tariffs mean suppliers can get away with “tricks and caveats”, including tiered pricing that penalises low users and discounts that don’t materialise.

With households facing energy price rises of between 10% and 20% this winter, Which? says it is vital that people are able to work out their bills and check they’re paying the right price.

The watchdog has therefore launched an Affordable Energy Campaign to help people spend as little as possible, and is calling on regulator, Ofgem, to introduce one simple format for all tariffs, as part of its ongoing review of the retail market.

Should that day come, people would be able to compare tariffs at a glance and easily see which is cheapest.

Earlier this week, Energy Secretary, Chris Huhne, promised to “get tough” with the UK six biggest energy companies, forcing them to make it easier for consumers to pick out the best suppliers and switch providers.

British Gas, Scottish Power, Scottish and Southern, Npower, E On and EDF could also be challenged by new competition, which the minister says he is keen to encourage.

Meanwhile, Which? will carry on campaigning for a standardised format for tariffs comprising: a daily charge covering fixed costs and a unit rate covering the actual energy used.

The idea is so simple that energy companies may have difficulty engaging with it.

Britons duped into buying “shoe-box” homes

”Britons

Britons are being duped into buying new homes that are too small to live in comfortably, with house builders and estate agents demonstrating a distinct “lack of transparency” over floor space.

According to research from the Royal Institute of British Architects (RIBA), thousands of brand new homes are failing to provide the space families need, with the average new three-bedroom property (built by one of the UK’s top housing developers) likely to be smaller than the recommended minimum size.

As a result, children are being deprived of space in which to do homework while families can’t relax properly or even have visitors to stay, the RIBA claims.

In its Case for Space report, which is based on 80 housing development sites across England, the Association found:

The floor area of the average new three-bedroom home is only 92% of the recommended minimum size, with the missing space equivalent to a single bedroom.

The most common new three-bedroom home encountered in the research is only 77% of the recommended size, and therefore missing the equivalent to two double bedrooms.

The average single storey one-bedroom home is 93% short of the recommended minimum size – missing out on space equivalent to a single bed, a bedside table and a dressing table with a stool.

By way of remedy, the RIBA and the Future Homes Commission have launched a national housing campaign aimed at building a comprehensive picture of what people want and need from their homes.

The HomeWise campaign also calls for:

Consumers to demand better information from estate agents and house builders so they can choose the most ideal layout, size and design of their new home.

House builders and estate agents to include the floor area of properties in their marketing material and indicative floor plans with furniture.

Energy performance certificates (including floor area) to be provided up-front rather than only after contracts have been signed, which according to the RIBA is currently too frequently the case.

The Government to work with the house building industry to produce an industry-wide voluntary agreement on data about the size and quality of new homes.

Speaking today, RIBA chief executive, Harry Rich, said: “Our new research confirms, thousands of cramped houses – shameful shoe box homes – are being churned out all over the country, depriving households of the space they need to live comfortably and cohesively.”

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