West Midlands homes spend £235 too much on energy bills
Families in the West Midlands will overspend on their energy bills by £354 million this year.
According to new research, £3.4 billion is being unnecessarily spent on energy across the UK due to variable tariffs.
Unsurprisingly, London tops a list of 100 cities and major towns with the biggest overspends. But it's Dudley that comes in 13th place with £21.8m, followed by Walsall in 19th place with £20m, Wolverhampton in 22nd with £18.5m and Stafford in 65th with £9.6m.
In total, 70 per cent of the Big Six energy company customers are overpaying by an average of £235 per year in the UK when compared to the cheapest fixed tariffs on the market.
Independent energy company First Utility said the research it commissioned showed that 80 per cent of bill payers would find it useful to have more information about cheaper tariffs from their existing supplier and those from others in the market.
A similar percentage also said that more transparent bills and more information about the best tariffs available would increase their level of trust in energy companies.
Sarah Willingham, consumer champion at LetsSaveMoney.com, said: "It's upsetting and shocking to see just how much money we are wasting in the UK by paying more than we need to for our energy. Traditionally the energy companies have not done enough to help consumers get onto the best tariff and to save money."
Ian McCaig, chief executive of First Utility, said: "The UK energy industry has contrived to put itself in a situation where around two thirds of its customers are on the most expensive energy tariff the industry has to offer, namely the 'standard variable tariff'. That simply can't be right and is even more inexcusable in a climate where wholesale prices have been coming down.
"First Utility believes that the industry needs to change from within and do more to inform and support customers to help them make informed choices about the best tariff.
"A big step would be to scrap the standard variable tariff and call it what it is - the 'Out of Contract Tariff' i.e. the tariff you're left on when you're not on one of the good ones.
"Just as importantly, every household should be told in writing every single month whether there's a better, cheaper tariff for them anywhere across the entire industry."
