Brits Wasting Millions Spending Too Much On Energy Costs

With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.

Such is the claim of Confused, which has warned that billions of pounds is being wasted throughout the country because people are failing to take advantage of cheaper energy packages available in their area. According to research carried out by the price comparison site, collectively the nation wastes 6.8 billion pounds over the course of the year because of a failure to move on to the cheapest tariffs available in individual regions. They warned that with the effect of the credit crunch still hitting hard, switching to a cheaper energy supplier is a necessity for those looking to reduce their outgoings.

For people who gave struggled to keep up with the price increases enforced by the countrys energy suppliers, applying for a debt consolidation loan could be one way of getting your finances back on track by paying your debts over a longer period.

Confused also urged consumers to ensure they looked at all options open to them, as there were significant price differences between providers costs. For example, homeowners with EDF Energy in the London Electricity grid district could save an average of 531 pounds a year by switching to the best tariff. Also, Eastern Electricity residents, could reduce their bills by a collective 592,365,691 pounds by moving away from EON to the cheapest provider.

Commenting on the findings, Gareth Kloet, head of utilities at Confused, said: "In some areas of the UK, up to 80 per cent of the population is still using the host supplier and are therefore spending more money than they need to. Many people shy away from switching, as they think that it will be a difficult process, but it is actually very simple. In fact, if you have not secured a competitive fixed rate, you should look to switch every six months - just switching to an online tariff and paying by direct debit could save 490 pounds per year."

He added that pursuing such habits could help people to "claw back" some of the billions of pounds that are needlessly spent every year on uncompetitive electricity and gas tariffs. Anybody who feels that they cannot switch suppliers because they owe too much to their current supplier, taking out a personal loan could be of use to clear their debt and then find a cheaper supplier.

Indeed, applying for a loan for the purposes of debt consolidation may be of interest to a growing number of people. According to figures published recently by financial services provider Abbey, 41 per cent of consumers now put paying off bills at the top of the list of their priorities for money management. In the meantime, only 1 in 9 said their main concern was ensuring that they put enough money to one side for their future.