Pay For What You Use May Not Be The Saving It Seems

In these days of itemised phone bills and transparent online banking, it may seem strange that, when it comes to utilities bills, a significant proportion of UK consumers are still not being charged for what they actually use.

Instead, some of the Big Six suppliers offer their customers the chance to pay a set monthly direct debit fee, with any differences between this and how much gas or electricity people have actually used made up for at a later date.

Such a system has long had its supporters and its opponents and a leading energy supplier has now announced a new scheme aimed at making such estimated readings a thing of the past, a move which has already attracted criticism from some consumer groups.

For, while only charging people what they actually owe may seem fair enough, critics of the supplier's scheme have argued that millions of Britons are reliant on exact monthly payments to keep on top of their outgoings.

Indeed, rather than giving consumers a helping hand by allowing them to assume greater control of their energy consumption, and therefore their bills, the initiative could leave some of the most vulnerable UK households struggling with significantly higher bills in the wintertime.

Seasonal consumption patterns will mean big monthly bills in the winter. However, those customers who pay quarterly bills by cash or cheque could stand to benefit from the new scheme.

Despite the fanfare being given to the announcement - with some even suggesting that it could 'revolutionise' the energy industry and serve as a major influence on consumers looking to switch utilities suppliers - to some, such news is little more than a distraction from the more pressing matter of elderly Britons struggling to cope with their winter heating bills right now.

However, with energy bills tipped to keep on rising, the UK may have to deal with another harsh winter before any real help materialises.

If you would like to know more about utilities why not ask AnswerBank Home and Garden.