Finance specialist warns of £3.8bn lost in energy bills

Finance specialist, TotallyMoney has warned that 27 million households are potentially missing out on substantial £300 savings due to price hikes and widespread misconceptions.

TotallyMoney’s research revealed that a significant £300 a year could be saved on average in UK households by switching energy tariff, this equates to customers overpaying by £3.8 billion due to not switching energy tariff or supplier

82% of the British public failed to switch energy in 2018. Over half (58%) falsely believe they are already on the best tariff. However, many don’t know that some energy suppliers automatically place customers on the most expensive plan once their introductory period ends, which is only capped due to restrictions and regulations mandated by the government.

Alastair Douglas, CEO of TotallyMoney, said “It’s alarming that £3.8 billion of people’s hard-earned money is being lost due to not switching.”

“A £300 annual saving is a worthwhile return in exchange for just two minutes of someone’s time — and that’s just the tip of the iceberg. For larger households and families, the potential savings could be even greater.”

“At TotallyMoney, we’re on a mission to improve the UK’s credit score and help our customers move on up to a better financial future. Helping our customers save money on their energy bills is a significant step forward in achieving this goal. Whether those savings are used to pay off more of their debt, or to simply make day-to-day living a little bit easier, it’s clear to see how a small switch could make such a big difference to the lives of many across the UK.”