Our latest research, conducted with EDF Energy, reveals that simple pricing would mean more of us would be able to easily spot the cheapest energy deal. In turn, this would increase our willingness to switch.
This probably isn’t a surprise to those of you who have supported our energy campaigns over the years. The idea of having simple energy prices, like a petrol pump display, which includes both the standing charge and unit rate, is one that could make a big difference to customers. You wouldn’t need to know how much energy you use to be able to identify the cheapest deal.
Our research found that the number of people spotting the cheapest energy tariff using simple pricing more than doubled compared to the current pricing format.
Around nine in 10 could spot the best deal with simple pricing in both a price comparison website and a newspaper ‘flat table’ scenario. This compares to around just four in 10 in both scenarios for the current pricing format.
Simple energy pricing is easier
The research carried out with EDF Energy, who have long supported this approach to simple pricing, also found that:
- People thought simple pricing was easier: 61% said it was easy to make a choice with simple pricing versus 38% who thought it was easy with the current model.
- People found simple pricing quicker: the average time people took to choose a tariff under the simple pricing structure was 36 seconds compared with 55 seconds for those under the current pricing format.
- People were more likely to switch using simple pricing: 47% said they would switch their energy tariff when looking at the simple pricing table compared to 38% who were given the table with the prices laid out in their current format.
Simple pricing is a winner! In a truly competitive energy market you should be able to spot the cheapest deal at a glance, making it easier to switch. The Competition and Market Authority’s investigation into the energy market investigation is a good opportunity to introduce simple pricing.
Do you get confused when comparing different suppliers’ energy prices? Would you prefer prices to be displayed in a simple petrol pump format?
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