Customers ignoring cheap energy tariffs

02/06/2009

Debt-hit Brits are missing out on great online energy deals, shock figures show.

Financial website uSwitch.com claimed yesterday that energy customers are paying £1.7 billion too much each year.

The report showed that householders were passing up cheap internet deals in favour of standard tariffs - even though these cost an extra £185.

Figures from regulator Ofgem highlighted by the site show that just one in twenty households are on an online energy plan.

By contrast, around 40 per cent pay their standard tariff by cash or cheque rather than direct debit - even though this is one of the most expensive ways to pay.

Will Marples, energy expert at uSwitch.com, said: "Online energy plans are where suppliers are offering their lowest prices - if households are not taking advantage then they will be losing out."

EuroDebt director Kevin Still added: “We would encourage anyone who hasn’t recently switched to at least compare the costs of the tariffs available. The process only takes 5 minutes and most people who elect to switch after using the free EuroDebt comparator make sizeable annual savings.

"We chose to offer energy switching Services to both its clients and to the general public because it was apparent that many consumers are not taking advantages of the best tariffs and payments methods, thereby releasing more disposable income to pay off debts or other priority expenditure.”

uSwitch.com also claimed that the average annual energy bill per household now stands at £1,245.

This is a £48 reduction on what the typical cost was at the beginning of the year.

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle,

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