Switch energy payments to direct debit, customers urged

24/11/2009

Customers looking to reduce their energy bills should switch to monthly direct debit if they have not done so already, Moneysupermarket.com has advised.

The price comparison website has unveiled new research, showing that Brits could save a collective £3.5 billion a year by changing their payment method from quarterly cash or cheque and swapping from a standard tariff to a best-buy online deal.

This equates to an average of £253.33 per household - an increase of £75 from the "savings gap" this time last year.

Moneysupermarket.com also found that customers switching from their "incumbent" regional energy supplier to a cheaper rival could also save a total of £3.3 billion.

Scott Byrom, utilities manager at Moneysupermarket.com, said: "While the cost of online energy deals has fallen this year after a raft of price cuts, a freeze on the cost of standard energy tariffs means those bill payers languishing on these tariffs are being penalised even further.

"It is worrying to see the gap between payment methods widen so rapidly, but provides a clear call to action for bill payers - apathy won't be rewarded here so taking action and swapping to the best deal possible is crucial."

The analysis follows a report from Ofgem, showing that future price trends could increase customer bills by 25 per cent above inflation by 2020.

Price comparison site uSwitch also claimed recently that the typical energy bill has risen by 40 per cent since the beginning of last year.

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

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