STUDENTS in Reading are paying more than £2,200 ‘unnecessarily’, a recent study has shown.
Research conducted by the Student’s Union at the University of Reading has revealed that students using so-called ‘unlimited’ energy packages are overpaying by thousands compared to more traditional contracts set up by their peers.
The study found that those in private rented accommodation with the relevant contracts pay an average of £2,200 more per household, compared to contracts with individual utilities suppliers.
The students’ union’s research found some student-focused letting agents are recommending expensive ‘unlimited’ packages, and pocketing commission fees.
While students may think these deals are easier to set up and provide convenient fixed payments, many may be paying significantly more overall.
The research examined nine unlimited energy providers, (HOUSR Bills, Epic Student Bills, oneutilitybill.co, Student Energy Group, FUSED, Split the Bills, Huddle, Uni Homes, Resooma, and Student Bills Company), comparing them against quotes from British Gas, EDF, Octopus, OVO and E.on.
For a typical four-bedroom property in Reading’s student area, individual contracts covering water, Wi-Fi, and energy would cost around £223 per month, compared to £408 for unlimited packages.
Now the university is looking to support students with a new Energy Advice Service which will provide practical guidance and 1-2-1 support on how to save energy, as well as guidance on setting up traditional utility contracts.
Students can sign up to the Reading Students’ Union mailing list to stay updated on energy advice and access resources. The campaign aims to have national impact, helping students across multiple universities make better-informed decisions about their energy contracts.
Professor Robert Van de Noort, Vice-Chancellor at the University of Reading, said: “Companies are selling expensive energy contracts to young people that many may not need during a cost-of-living crisis.
“Many students are paying utilities bills for the first time, and it is very concerning to see companies targeting them to sign up for contracts that encourage profligate energy use or charging them for more than they need.
“This could be a national issue affecting thousands of vulnerable students all over the UK, not just those in Reading.
“We’re calling on universities and energy regulators to help students push back against this worrying trend.”
Dan Fernbank, Energy & Sustainability Director at the University of Reading, said: “Unlimited energy contracts are a popular option for students living with new friends because they prevent arguments about who pays what.
“But beyond the financial impact, these packages promote environmentally unfriendly practices by encouraging unlimited energy use.
“We want to empower students with the knowledge to make informed choices about their energy supply and avoid unnecessary extra costs and energy use.”
