Everest industry news
New homeowners risk paying over the odds for fuel
18 April 2008
New research suggests that as many as 2.4 million home movers each year could be paying over the odds for their energy.The financial advice site Motley Fool estimates that canny utilities firms are collectively conning these movers out of £70 million, by assigning them to 'deemed' tariffs.
These standard quarterly tariffs are typically 25 per cent more expensive than the same supplier's cheapest offer and capitalise on the uncertainty of new owners as they settle in.
"Moving house is an expensive exercise," observed David Kuo, head of personal finance at the Motley Fool.
"And the expense in moving can be made more costly if consumers unsuspectingly sign up to penal energy tariffs."
The finance expert advised new occupants to "not delay" in shopping around for a cheaper deal and to sign up with direct debit to make further savings.
New owners should also ensure they note meter readings immediately before using any gas or electricity and make use of the advice provided with Home Information Packs.
Each pack includes a property's energy performance details, complete with tips on how to efficiently reduce fuel usage.
Effective methods include installing double glazing and added insulation to prevent unnecessary heat loss, helping to reduce wastage and lower fuel bills.
