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Cheap energy rates could be available with different payment methods - 04/08/2009

Prices from energy suppliers could be tackled more effectively by offering alternative payment schemes that might reduce the scale of fuel poverty in the UK, reports 24dash.com.

Charity National Energy Action (NEA) suggests that combining payment methods already available to consumers, such as direct debit and Fuel Direct, could reduce the number of homeowners having to set aside more than ten per cent of their annual income for energy bills.

The best energy tariffs are generally available by setting up direct debit payments online, but many poorer households lack an internet connection and so are unable to take advantage of cheaper rates.

Maria Wardrobe, director of communications at NEA, told the website: "It's essential that consideration is given to other payment methods in order to improve access to the energy market and the lowest available tariffs."

Many lower income households still use pre-payment meters that carry a premium of as much as £290 a year.

All the major energy suppliers have reduced their prices in recent months but these reductions have not matched the scale of last year's increases.

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