Those Britons who are paying for their energy through a
prepayment scheme are losing out on millions of pounds,
according to findings by a price comparison website.
In a study carried out by moneysupermarket, it was revealed
that the typical person meeting the cost of their utility
bills via prepayment is paying out an average of 1,026
pounds 46 pence. However, by switching to pay by monthly
direct debit, such a consumer would pay 853 pounds 96
pence. Overall, it claimed that prepaying Britons are
missing out on total savings of 862.5 million pounds.
Due to difficulties with meeting the cost of household
bills, it may also be possible that many consumers develop
problems with other sources of financial constraint. Such
areas could well include mortgage or rent costs, loans and
store and credit cards.
Furthermore, it seems that those who choose to prepay for
their gas and electricity with British Gas could be coming
under most monetary pressures. Such consumers were
indicated as paying out 1,143 pounds 59 pence, although by
changing to direct debit costs would fall to 879 pounds 97
pence. Generating a total saving of 263 pounds 62 pence,
this is the biggest amount of money among the six major
energy providers. Npower customers were revealed to be able
to be 221 pounds 17 pence better off by changing their
method of payment. On the other hand, the smallest
available saving is with EDF. However, even switching bill
settlement methods here could save consumers just over 70
pounds.
Although Paul Schofield, head of utilities at the price
comparison site, commended moves by chancellor Alistair
Darling to increase spending on social tariffs, he stated
that more could be done to help those at risk of fuel
poverty. The moneysupermarket chief claimed that currently
just 0.11 per cent of major energy firms' turnover is going
towards low-rate deals and helping poorer customers.
Mr Schofield said: "The government will also be working
with [gas and electricity watchdog] Ofgem and energy
providers to treat prepayment customers fairly. Customers
can shave hundreds off their bill by changing payment
methods. Ironically, those on prepayment meters have a
hefty price to pay and will find their annual bill 172
pounds 50 pence higher than those who pay by monthly direct
debit. With five million customers on pre-paid meters,
people are missing out on 862.5 million pounds a year in
savings. I call on Ofgem to put pressure on the energy
providers to support vulnerable customers and reduce prices
for pre-paid customers."
The moneysupermarket official went on to claim that "help
is at hand" for those Britons who find that they are
developing problems with paying off energy bills. Mr
Schofield recommended that consumers should get in touch
with their utilities provider who may be able to offer
assistance on the likes of winter fuel allowances and
special social tariffs.
People worried about their capacity to pay for energy bills
might also wish to consider taking out a UK loan. In
obtaining a cheap personal loan it is possible that
borrowers can quickly meet demands for payment on utilities
and other areas of household spending. Indeed a quick loan
could also be of assistance to those struggling with mobile
phone costs. A recent study by the price comparison website
indicated that on at least one occasion a fifth of mobile
phone users have received a bill that is more costly than
previously anticipated.
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Abbi Rouse writes for All About Loans where visitors can
apply online for cheap UK loans. We also specialise in
poor credit loans, and cheap consolidation loans. Visit
today http://www.allaboutloans.co.uk/
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