Families ‘pay £4bn too much for power’
FAMILIES are over-paying for power by a whopping £4billion because they remain on the most expensive tariffs, a study claims.
Customers of the Big Six power companies are paying out an average of £293 too much – £59 or 25 per cent more than last year – says independent provider First Utility.
It found households in the East Midlands and East of England were over-paying most, with an average saving of £310 available annually if they were to switch.
First Utility said inertia is causing more than 85 per cent of customers to stay with one of the Big Six. The Competition and Markets Authority estimates families waste more like £1.7billion a year but it says the Big Six have taken customers for granted.
First Utility said householders were likely to assume they were better off following price cuts this year.
Energy UK, which represents suppliers, said: “Customers are taking advantage of the number of deals on offer from the 40 suppliers in the market.”