Thousands of people who choose to pay for their energy bills in cash are being slapped with a premium for doing so, figures show.
The average cost difference between someone who pays on receipt of bill versus versus by monthly direct debit is £87 a year, auto-switching service Migrate found.
The largest difference between payment options comes from Bristol Energy, which charges £105 extra a year to pay on receipt of bill.
Households who choose to pay in this way are typically sent a quarterly invoice for their usage, along with an option to pay either online, by phone, cash or cheque.
However, suppliers are known to charge a premium for this service to recoup any fees associated with having to process cash and cheque payments. In other cases, the best deals are often reserved for those who opt for monthly payments.
And with Government figures showing 2.6 million people over the age of 75 don't have access to the internet, many of those subject to the penalty are likely to be the people least empowered to do anything about it.
On average, the 'Big 6' suppliers charge customers who choose to pay on receipt £83 a year more than those who pay by monthly direct debit.
E.ON , EDF Energy, Npower and Scottish Power all charge customers who wish to have the option of paying by cash or cheque an extra £90 a year for the privilege.
At £50, British Gas has the smallest disparity between payment options for ‘Big 6’ suppliers.
Many people, particularly older people, prefer the discipline of receiving a quarterly bill and having the option to pay by cash or cheque to help them manage their budget.
And while suppliers typically offer a discount for prompt payment, those who chose this payment method will likely still pay more for their energy than those who pay via direct debit.
George Chalmers, head of smart-switching service Migrate said: "Although many of us have embraced the convenience of paying by direct debit, there’ll always be people who prefer to do things the old-fashioned way.
"However, with suppliers charging an average of £87 a year more to pay on receipt of bill, it’s a luxury that few people on a fixed income can afford.
"It’s also become abundantly clear that consumers can’t rely on the price cap to protect them against rising energy bills and the only way to ensure that they’re getting a good deal is to vote with their feet and migrate supplier. However, with limited access to the internet, those who could stand to benefit the most from doing so also face the biggest barrier to switching."
