Energy Tariff Warning For People In Debt

The energy market has been under intense scrutiny in recent years, as domestic gas and electricity bills have been hitting new heights and tariffs have been deemed confusing. It is thought that some customers might actually be paying more than necessary because of obscure packages.

The government has been working to make the industry much clearer over tariffs, but there is still some concern about whether a simpler tariff will actually cost the customer less. This may not be too much of a worry to people on higher incomes, but for those that are already facing financial difficulties, it could be crucial.

Price comparison website MoneySupermarket has highlighted the concern over the simplified tariffs after British Gas revealed its new plans. The new tariffs from the supplier are cheaper than the deals that they currently offer, but are nowhere near the cheapest on the market.

Scott Byrom, energy channel manager said, “The new tariffs still aren't competitively priced compared with the options available from other energy companies. The new ‘Clear and Simple' tariff replacing ‘Standard' is around £20 cheaper, but still £38 more expensive than the cheapest standard tariff.”

It is not known yet how the rest of the energy suppliers will simplify their tariffs and how it will affect overall prices, but it is not thought that the simple tariffs will bring down the cost for consumers.

The high price of energy has led to more people on lower incomes struggling with fuel debts and other personal debts. One of the best things to do if you are facing arrears is to seek professional debt advice from an expert.

There are a number of ways for families to relieve themselves from the pressure piled on by creditors if they have unmanageable debt. Protected trust deeds are one of the many debt solutions available to people who can no longer afford debt repayments.

Dave Prentis, general secretary of Unison, spoke out about the cost of heating recently, and warned that low-paid public sector workers would soon be facing high energy bills once again when winter kicks in.

Debt repayments can eat up a large percentage of monthly income if people have high outstanding debts, and once late payment fees and arrears have been accounted for, many will be lucky to have any left over, or be able to pay it at all.

Those that feel the simplified tariff will not reduce their outgoings by enough to make a significant difference, need to seek further debt help. If an application for a protected trust deed is successful you will only pay what you can afford each month, a large portion of debt can be written off, creditors will no longer be able to harass you for payments, and you could be debt free in just three years.

Debt solutions should not be taken lightly, but if your financial circumstances are in need of a serious helping hand, they may be the key to getting out of debt and getting your finances back on track.