A new survey by Fair By Design asked people on low incomes about how they pay for their energy. It found:
- Over half of people (57%) do not realise that they are paying more for their energy because they wait to pay until after they have received their bill from their energy supplier compared with someone paying via direct debit.
- 94% of people who know about these extra charges think that it is much smaller than it is. Most people (60%) think the extra charge is below £50, when in reality it is over £135 per year (£120 at the time of the survey).
- Four out of five (78%) people believe it’s not fair that consumers are charged extra for energy just because of the way they pay.
- This comes as Ofgem today announces the new energy price cap, which means that people paying after they receive their bill will still pay £135 more per year compared to using direct debit.
Maria Booker, Head of Policy, Fair By Design said:
“The majority of people have no idea that they are being charged over £130 more for energy just because of how they pay. This is another blow to households on low incomes, who have to pay this way because they cannot afford to pay via direct debit or they don’t have a bank account.
“This survey shows that many people use this method of payment as they want to stay in control of their spending and only pay for the energy they’ve used. At the same time, they feel they are being ripped off just for choosing a method of payment that suits them.
“We want to see the extra costs for paying for energy on receipt of bill eliminated permanently. Everyone deserves to know that this extra charge exists so that they can make an informed choice about how they pay for their energy.”
ENDS
For full notes to editors and further information please contact Frankie Galvin: 07506 776 054 / f.galvin@barrowcadbury.org.uk for more information.
