Energy News

Energy Suppliers Get Tough On Customers

Thursday 21 February, 2008

By Denae D’Arcy

Credit checks and security deposits may become standard practice for energy companies in the UK.

Three of the UK’s biggest energy suppliers, E.ON Energy (www.eonenergy.com), British Gas (www.britishgas.co.uk) and EDF, have all declared to perform credit checks on new customers.

Scottish Power, npower, Utilita, and Scottish & Southern Energy will reserve the right to perform credit checks in specific cases.

E.ON has said that details of customers who default on payments will be turned over to a credit reference agency.

The tightening of requirements for new services comes as many Britons struggle to pay mounting credit card debts, mortgage repayments and existing utility bills.

Chris Eagle, Commercial Manager at Energychoices.co.uk, says:

“Introducing credit checks will result in customers who have a low credit score paying a higher tariff. Energy is an essential service for people, and although this might protect companies from a credit crunch, it is putting a hardship on consumers. Be sure to compare energy prices, and remember there are still companies that do not perform credit checks if you are worried about your score.”

Related Articles:

How to switch energy supplier

Energy market

Gas and electricity tariffs

Compare Energy prices and see how much money you can save.
Compare Energy Prices