"Incredible" gas and electricity overpayments face criticism

26/03/2009

Most customers who have set up a Direct Debit with their gas and electricity firm are "in credit", Which? has said.

The consumer group released a new report, showing that seven in ten of the Direct Debit customers had paid too much for their energy in their last bill.

Around one in four of those in credit were revealed to have overpaid by at least £100 - while eight per cent faced a payments gap of over £200.

Which? said that these inaccurate payments meant that customers were effectively lending their energy provider money interest free.

Martyn Hocking, editor of Which? Money, said: "It seems incredible that energy companies can take hundreds of pounds more than they need to from their customers and profit from the interest that this money will earn at our expense."

He added: "While a small amount of credit built up over the summer months can be used up during the winter, it's difficult to see how a £200 credit will be used up - particularly as the customer makes the same payment each month."

Tags; Housing Debt and Bills, Credit Card Lifestyle, Recent Graduate Debt,

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