You are here: Home - Household Bills - News -

Scottish Gas stings late payers

0
Written by:
08/01/2007

Customers of Scottish Gas who fail to pay their bills on time will be fined under a new penalty scheme to be applied by the company.

Consumers who have not settled their account and paid the full gas price or electricity price within 28 days of being sent their bill will forfeit £5, a move the company said would help make up the millions of pounds it loses each year chasing late payers.

The company has assured vulnerable customers that they will be exempt from the scheme and that the move has been taken in response to rising costs when recovering money.

A Scottish Gas spokesperson said: “The £5 charge reflects our costs in following up customers’ debts and is an approach similar to that taken by many other companies, like BT, though we will not be applying the charge to vulnerable customers.”

He continued: “We are informing customers who pay us by cash or cheque, offering advice on how to avoid the charge and the option to switch to a regular payment scheme to cover the cost of the gas price and other energy needs.”

But industry regulator Ofgem said that people who did not like the proposal to levy a £5 fine could “vote with their feet” and find a cheaper supplier.

An Ofgem spokesperson said: “There is a sufficient variety of companies out there to ensure that people can easily look for a cheap utility company that does not levy a late payment fee.

“Our studies have shown that if you are still with Scottish Gas for your gas and your local supplier of electricity, you could save anywhere between £100 and £150 by moving supplier, so the advice for consumers to get cheaper utility bills is to shop around.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Cheap energy runs out of steam for thousands

Many UK utilities customers face steeply higher energy bills in the coming months as their special tariffs are expiring and they...

Close