Overpaying on energy bills 'leaves Brits facing debt threat'

03/09/2009

Many Brits could be at risk of falling into debt because they do not check their energy bills and instead rely on their provider to do the calculations for them, it has been claimed.

According to the Consumer Credit Counselling Service, it would be "fairly easy" for consumers to overpay for gas and electricity if they are not keeping tabs on their charges, particularly if they pay by direct debit.

A spokesman for the charity said that the wide range of tariffs currently on the market, on-peak and off-peak rates and using different suppliers for different services can make working out bills a "quite complicated" process.

In a recent test run by price comparison website uSwitch.com, 86 per cent of people asked to calculate a sample energy bill with the subtotals blacked out failed to come up with the correct total cost.

Of the 2,700 people that took part in the challenge, only 379 got the right answer, despite participants being allowed to take notes and use a calculator.

Over 7,000 consumers have already signed up to a petition on the Number 10 website calling for energy bills to be simplified.

EuroDebt director Kevin Still commented: "Comparing the available tariffs and payment methods is essential for those that are in financial difficulty or facing major adjustments to their current tariffs.

"EuroDebt took the decision earlier in 2009 to provide energy switching services and a free comparison facility including all the energy providers.

"Paying utility bills should be a priority and effectively budgeting for these costs is essential. The service can be accessed at www.energyswitching.co.uk."

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

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