The hidden cost of "unlimited" energy deals

Research has found that students using ‘unlimited’ energy packages in private rented accommodation are paying on average £2,200 more per household compared to those who set up traditional contracts directly with individual utility suppliers.*

There are examples of student-focused letting agents promoting these expensive packages and receiving commission fees. Although marketed as convenient and simple, these contracts often result in significantly higher payments.

Comparing providers

The research compared 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) with quotes from major energy suppliers such as British Gas, EDF, Octopus, OVO and E.on.

For a typical four-bedroom property, individual contracts covering water, Wi-Fi, and energy would cost around £223 per month compared to £408 for unlimited packages. 

These ‘unlimited’ deals are frequently attractive to students moving in with new housemates as they avoid splitting costs, but they can lead to excessive spending and increased energy use.

Cost of Living support

Many students are worried about the increased costs of living. We’ve put together some pages filled with advice, tips and tricks on having a more affordable time at UoB.

The Guild also offer free financial support, including advice on money management and budgeting through Guild Advice.

• Research conducted by the University of Reading.