95% fail to get best energy deals online

Tuesday, 02 June 2009 07:02

Brits are failing to take advantage of the best online gas and electricity bills.

Only five per cent of households are on online energy plans - paying on average £185 a year less than those who pay on the receipt of a bill.

The average difference between online and direct debit tariffs is £88 a year.

uSwitch.com claims the average annual energy bill now stands at £1,245 - compared to the lowest online deal of £1,018.

But still 40 per cent of energy accounts still pay by cash or cheque quarterly on receipt of the bill.

More worryingly is the fact around four in ten households, according to data from regulator Ofcom, having never switched energy supplier.

Will Marples, energy expert at uSwitch.com, said: "This is not about lack of competition - this is about consumers failing to take advantage.

"Whether it's down to lack of understanding, poor communication or apathy, there is absolutely no reason for large numbers of consumers to be overpaying for their household energy."

He added: "Online energy plans are where suppliers are offering their lowest prices - if households are not taking advantage then they will be losing out."

Mr Marples added people should not be put off by going online as often you only have to sign up online and can then carry on as before with paper bills, meter readings and being able to phone your supplier.

Online energy savings

Supplier Standard Plan (paying by monthly direct debit) Standard Plan (paying on receipt of bill -POR) Online Plan (paying by monthly direct debit -MDD) Difference between the standard plan POR and online plan MDD
ScottishPower £1,155 £1,362 £1,065 £297
E.ON £1,157 £1,259 £1,040 £219
npower £1,151 £1,256 £1,063 £193
British Gas £1,127 £1,202 £1,018 £184
EDF Energy £1,147 £1,189 £1,090* £99
Scottish and Southern Energy £1,133 £1,192 £1,115 £77
Average £1,145 £1,243 £1,060 £183

Source: uSwitch.com.
Based on a medium user consuming 3,300 kWh electricity and 20,500 kWh gas with bill sizes averaged across all regions.

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