Which? published a policy report in May 2023 calling on energy providers to improve how they communicate with customers about bills and direct debits. The report, "Talking energy: Identifying the principles for clear customer communications", draws on an online survey of 2,082 UK adults carried out by Yonder Consulting on Which?'s behalf between 23 and 24 January 2023, weighted to be nationally representative1.
The research compared a mock "control" communication based on current supplier practice with a mock "test" communication using simpler language, fuller explanations of direct debit changes, personalised graphs, clear action statements and more readable formatting. Of those shown the test version, 45% answered comprehension questions correctly, against 27% of those shown the control version1. Which? found that 76% of consumers reported finding their energy bills confusing, and that 47% said they find bills stressful while 49% said bills make them feel anxious1.
The report links clarity to trust and to how customers respond to payment changes. Three-quarters of consumers (74%) who found their bills unclear said they did not trust their energy provider, compared with 30% of those who found their bills clear1. On direct debits, 65% of those who saw a simple explanation of why the payment amount was changing completely understood the reason, against 48% of those who saw existing-style communications; 38% of those given no explanation said they would challenge the change, against 28% of those who received the test explanation1.
Which? set out five principles for providers: use simple language and full sentences, avoiding or explaining terms such as "credit" and "debit"; explain why a direct debit change is needed, including how direct debits spread payments across the year and the function of credit balances; include a personalised graph of predicted costs; state clearly what action, if any, the customer needs to take; and consider readability in formatting, font and structure1. Among formatting features, emboldening key information and providing a streamlined summary were each rated helpful by 54% of respondents, and an easy-to-read font by 40%1.
"While providers are currently communicating in different ways, with some providing information more clearly than others, it is clear that there is room for improvement across the industry."
The report notes that suppliers must already follow Ofgem rules requiring information to be communicated in language consumers can understand, with the most important information given prominence, but states these are not sufficient to avoid confusion1. It cites a Which? review of recent provider communications that found unexplained acronyms and direct debit amounts raised without a full explanation1. It also reports that 13% of customers had most recently contacted their provider about a bill, direct debit or credit balance query, and that some suppliers have reported call numbers rising by 300%1.
Why it matters for households
A bill or direct debit letter that a householder cannot follow makes it harder to check whether the amount being collected matches expected use, and harder to judge whether a payment change is justified. The report's findings suggest that unclear wording is associated with lower trust in the supplier and a greater likelihood of disputing a direct debit rise, which matters for anyone weighing up whether to challenge a direct debit increase or work out why a direct debit is so high. Understanding how direct debits spread costs across the year, and how credit balances work, is central to that judgement, and the report found a simple explanation of these points improved comprehension. Clearer communications also bear on the wider question of how far a household can control its own costs, which sits alongside the energy bills and energy independence picture.
What happens next
The report contains no dated commitments from suppliers or from Ofgem. Which? states it is calling on providers to incorporate the five elements into their billing and direct debit communications wherever possible1. No timetable for adoption, monitoring or further regulatory action has been reported.
Sources1 cited
- gm-f5666d57-e600-460b-840b-8d645ca8377d-energy-communications-report.pdf, media.product.which.co.uk