Energy customers who pay their bill by cash or cheque are being charged an extra £100 a year more on their bills, compared with those that pay by direct debit.
This premium has worsened over the last two years, according to the industry watchdog Ofgem, which said it was monitoring carefully to see if any companies were unfairly penalising customers.
People who pay by cash or cheque are called standard credit customers by the industry, and the extra £100 they pay on average has emerged as fears mount that companies are trying to stop the use of cash to pay bills. The industry has already announced that it intends to scrap the chequebook by 2018.

This is clearly wrong. The government should stop companies discriminating against certain types of payment.

How is it wrong? Certain types of payment cost more to process. Why should I subsidise people who choose to be awkward?

Yes but a £100 per year more? What if you had no bank account? If you pay by cash you could pay it directly into a bank using a payment slip, this would cost no more than a direct debit.

A payment slip requires handling on a monthly/quaterly basis. Direct debit is a one-off setup and then automatic.

A payment slip requires handling on a monthly/quaterly basis. Direct debit is a one-off setup and then automatic.

Yes but you are still sent a bill, whether it is paid or not. The handling can be done by the banks and the payment codes do show who the payment is from. It is cheaper than cheques but banks prefer automated payments because they can get rid of staff. hence they can price such payments cheaper.

Yes but you are still sent a bill, whether it is paid or not.

I don't get a bill for some services, I choose paperless billing where possible.

But you're right, because they don't have to employ so many staff is the primary reason it's cheaper for them.

How is it wrong? Certain types of payment cost more to process. Why should I subsidise people who choose to be awkward?

+1
Also, people who pay by cash/cheque often pay late. Why should the power companies be out of pocket?
I suppose there's an arguement for a lower cost, but with heavy fines for paying late.....

+1
Also, people who pay by cash/cheque often pay late. Why should the power companies be out of pocket?
I suppose there's an arguement for a lower cost, but with heavy fines for paying late.....

Also, people who pay by cash/cheque often pay late. Why should the power companies be out of pocket?
I suppose there's an arguement for a lower cost, but with heavy fines for paying late.....

We choose to pay some of our bills online with a debit card. We never pay late, but we don't get the discount. How is that fair?

I suppose there's an arguement for a lower cost, but with heavy fines for paying late.....