Millions of us are paying more than we need to for our domestic gas and electricity because we are still on our power companies' standard tariffs.
In recent months each of the big power companies has passed on the greatest price reductions to those of us who are hapopy to do away with paper bills and manage our accounts online.
According to uSwitch.com, more than 12.5m households (just over 50% of the market) are on "standard" tariffs and are paying too much as a result.
It has calculated the total overpayment is around £1.5billion a year - or an average of £132 a household!!
uSwitch said a new British Gas online customer would be paying £755 for dual fuel energy while a standard tariff customer with the same usage would pay £913.
That is £158, or 21% more!!
uSwitch said if all the British Gas customers on the standard tariff switched to its new internet-based tariff they could save £430m!
British Gas has the second-lowest number of customers who manage their accounts online of the big six suppliers (despite having the largest customer base!) Only 9% of its dual-fuel customers are on its online tariff.
ScottishPower has the most online customers as over 27% are on its online tariff.
Percentage of customers paying cheaper online tariffs:
- British Gas 9%
- Scottish and Southern Energy 11%
- Npower 13%
- EDF Energy 21%
- Powergen 25%
- ScottishPower 27%
"Suppliers are playing a very canny game," said Geoff Slaughter, energy expert at uSwitch.
"By deliberately offering their cheapest prices on those tariffs with low take-up they can look competitive, attract new customers but keep their existing customers merrily paying over the odds. While it seems unfair, they will only get away with it if consumers continue to allow them to do so."
He warned that many standard plan customers and, in some cases, existing online customers were not automatically given the cheaper rates - they had to apply in the same way as a new customer.
USwitch found that some 68% of the dual-fuel households in Britain would be happy to manage their energy bills online. However, 45% said that the idea of no longer receiving a paper bill would be their main reason for not moving to an online tariff.
But if you are internet savvy, then it certainly makes sense to manage your account online.
Not only will you make substantial savings, but you will prevent the energy companies taking any more of your cash then is necessary!
After all they seem to have plenty of it already!