A university Students’ Union in the South of England is examining the cost-effectiveness of “unlimited” energy contracts for students, raising concerns about potential pressure to sign contracts with energy providers. According to research conducted by Reading Students’ Union, students on unlimited energy packages pay an average of £2,200 more annually compared to those with traditional contracts.
In response, the Union has initiated an Energy Advice Service aimed at assisting students who may not have been informed about the higher costs associated with unlimited contracts. The study indicates that in extreme instances, students could pay up to £3,280 more than they would with standard contracts. The research included comparisons between quotes from unlimited energy providers and traditional suppliers like British Gas and EDF, highlighting significant price discrepancies.
For a typical four-bedroom student property in Reading, the estimated monthly costs for traditional contracts average around £223, while unlimited packages average £408. However, one provider, Fused, claimed its average monthly cost is actually £369.62, emphasizing that their prices provide stability, unlike variable contracts from standard suppliers.
Ellie Buckley, a second-year student, expressed regret about not being fully informed before deciding on an unlimited contract, which costs her £76 a month. Conversely, third-year student Jenny Smart reports a lower cost of £48.78 by opting for individual contracts with traditional providers.
The Vice-Chancellor of the University of Reading has urged collaboration among other universities and energy regulators to address these issues. Energy providers, including the Student Energy Group and Fused, have defended their practices. They assert their commitment to transparency and providing necessary information, while also acknowledging that unlimited contracts typically cost more than traditional options.
Source: https://www.bbc.com/news/articles/c75qkz9wr67o?at_medium=RSS&at_campaign=rss