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Energy users 'penalised' for paying by cash - 23/05/2012

Consumers who prefer to pay for their energy bills using cash may find they are less able to get cheap gas and electricity deals than those using methods such as direct debit.

This is the finding of an investigation by Channel 4's Dispatches, which revealed individuals paying for utilities with cash could be spending nearly £100 more than necessary, the Daily Telegraph reports.

Currently, more than one million people in the UK do not use direct debit for their household bills, with elderly customers more likely to prefer making payments in person.

It was noted energy suppliers and other firms are keen to encourage customers towards electronic payments, as this is cheaper for them than handling cash.

But Richard Lloyd, executive director of Which?, said: "As the industry develops these systems, they've got to keep in mind the people that either can't or won't use the modern new payment systems in that way."

Recently, energyhelpline.com observed now is a good time for people on a direct debit account to compare energy providers, as they may build up a credit in the warmer months so will not have large bills to settle when they switch, the Daily Mirror reported.

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