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UTILITY WEEK | 11TH - 17TH MARCH 2016 | 27 Customers Analysis C omplicated, opaque bills are a persis- tent problem for utilities. The industry has come under fire from energy regu- lator Ofgem and consumer group Which?, the latter calling for the mandatory informa- tion included on bills to be broken down and technical jargon rendered understandable. Over the past few years, many suppliers have been fined by Ofgem for billing system prob- lems, most notably Npower, which was hit with the highest fine of £26 million. Engagement with the market is one of the topics on the table for the ongoing Competi- tion and Markets Authority (CMA) probe into the energy market. While the industry awaits the final remedies to be announced in June, speculation suggests that solutions for bet- ter billing will be one important element. By responding to the calls for clearer bills, com- panies can help to reduce complaints and increase customer satisfaction in an industry suffering from broken trust. Why it is important Bill clarity can prevent the need for back- billing, and save energy companies time that could otherwise be spent resolving issues and queries. Information setting out details of the customer's tariff and providing insight on usage could also increase engagement in the market and give customers the ability to make informed decisions about switching and energy efficiency. Money Supermarket energy expert Ste- phen Murray says engagement in the market is the most important reason for a bill rede- sign from suppliers. "On a customer state- ment there should be a summary box, with the key things that a customer needs if they want to use their bill as a primary tool to engage them in switching," he says. A summary box would contain informa- tion such as the tariff 's name, how much gas and electricity the customer used, and the payment method. Suppliers could also con- sider introducing a seasonality model to try and help customers understand how much they have used in the past year and how much they are likely to use in the future, based on their current consumption pattern. What problems do unclear bills cause? Energy bills are the main means of communication between a customer and a supplier, but are they also the number one reason for complaints – oen as a result of custom- ers misunderstanding the bill or struggling to find the information needed. An increase in the amount of information suppliers are required to include has further complicated bills' layout. The energy industry as a whole has a poor reputa- tion for customer service and this is wors- ened by high complaints numbers and fines imposed on those who cannot resolve com- plaints efficiently. SSE group managing director Will Mor- ris says: "Customers told us they want to be able to find the information they need quickly and easily. They don't want the bill to be longer than two pages and they don't want unnecessary or confusing informa- tion – calorific conversions being a good example." What can companies can do about it? SSE is one supplier that has invested time and effort in trying to get it right. Its bill rede- sign involved 8,000 customers, the Design Council and Citizens Advice, among others, and moved block information into bubbles that clearly divide the electricity, gas and total amounts. The bill also incorporates a box that explains to customers how they can save money, as well as the name of the tariff they are on. SSE also includes usage graphs for the customer that represent usage com- parisons against their previous bills. The Campaign for Plain English encour- ages other energy companies to take note and says suppliers should use SSE's design, which they call a "fine example of clear commercial communication", as a template. Which? executive director Richard Lloyd says the consumer group wants to see all providers come forward with solutions to be trialled and tested with Ofgem. Energy UK chief executive Lawrence Slade believes that "ultimately wholesale and operating costs should be broken down on the bill" to get the message over about what the "make-up of the bill is and what the different parts are". "For too long we haven't had these con- versations and it is time for government pol- icy and how these things are charged out to be absolutely transparent," Slade says. As the CMA prepares to intervene on bills, other suppliers will be taking note. Can I see the bill? SSE made headlines last week with a redesigned energy bill that uses plain English in a bid to make complex information clearer for customers. Saffron Johnson takes a look at it.