Energy Bill Rises Causing Concern, Charity Warns

Thousands of Britons have contacted Citizens Advice due to their worries about gas and electricity prices, the charity has said.

In particular, many customers were found to have unwittingly increased their personal debt by paying their bills through direct debit. This is because the amount which is taken from their bank account is based on estimated readings rather than the bill itself - meaning that, when bills rise, a shortfall is created.

Rising wholesale costs have led to an average 15 per cent increase of general tariffs, which was enforced by Britain's major energy providers in the New Year. Some analysts expect a further 40 per cent rise before the end of 2008, bringing the average annual household fuel bill to over £1,500.

Tony Herbert at Citizens Advice explained: "[Families] might have a direct debit set up; they might think they're paying their bills, but because they're paying on estimated readings it may not reflect how much they're actually using."

Speaking to the BBC, customer Richard Mann said that he had his direct debit increased ten times over by his energy provider last month, after unwittingly creating a payment shortfall in this way. "It's a big jump and we have to find that money from somewhere," he said. "We're a family, we have bills to pay so every penny counts at the moment."

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