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Simple is good: Redesigning utility bills to reduce complexity and increase understanding

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  • Brühl, Johanna
  • Smith, Grant
  • Visser, Martine

Abstract

This study examines whether the presentation of billing information in a cognitively simple manner increases consumer understanding and satisfaction. 1325 participants were randomly assigned to different treatment groups and received one of nine redesigned utility bills or a standard bill. Comprehension and satisfaction were tested through a questionnaire. Restructuring the bill in a logical order, and displaying electricity consumption with separate bar graphs, had a positive effect on understanding. Methods commonly used by utility providers, such as adding conversational prompts to guide consumers through the bill, or using graphical math to explain tariff calculations, had no discernible effect on understanding.

Suggested Citation

  • Brühl, Johanna & Smith, Grant & Visser, Martine, 2019. "Simple is good: Redesigning utility bills to reduce complexity and increase understanding," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    • Handle: RePEc:eee:juipol:v:60:y:2019:i:c:3
    DOI: 10.1016/j.jup.2019.100934
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    Cited by:

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    2. Máté János Lőrincz & José Luis Ramírez-Mendiola & Jacopo Torriti, 2021. "Impact of Time-Use Behaviour on Residential Energy Consumption in the United Kingdom," Energies, MDPI, vol. 14(19), pages 1-32, October.

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    More about this item

    Keywords

    Electricity bill; Consumer understanding; Electricity consumption;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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