Energy customers 'pay £224 more for paper bills'

07/09/2009

Households that pay their energy bills by cash or cheque are forking out an average of £224 a year more than those who sign up for online billing and payment by direct debt, Which? has said.

The consumer group said research carried out for the Daily Telegraph by comparison website uSwitch.com found that the average annual dual fuel bill for customers that pay on a quarterly basis is £1,239.

This falls to £1,015 a year if they use online billing and pay via direct debt.

Which? noted that the gap between the cost of using a paper bill and an online account has almost doubled in the past 12 months from £116 to £224.

Figures from energy regulator Ofgem show that over half of energy customers do not currently pay their bill by direct debit.

Pensioners in particular are likely to be missing out on online savings, as data from the Office for National Statistics indicates that 45 per cent of over-65s have never used the internet.

A recent report by the Institute for Fiscal Studies supported by Age Concern and Help the Aged found that energy use among the over-50s fell by an average of ten per cent 2004-05 and 2006-07, yet spending on fuel bills increased by an average of 22 per cent over the same period.

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

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