Students say 'unlimited' energy costing £2k more

Ellie Buckley says she wishes she'd known more before committing to an unlimited energy contract

A university students' union is questioning whether "unlimited" energy contracts are value for money and has raised concerns about students being pressured into signing up with providers.

Research by Reading Students' Union claims students using "unlimited" energy packages pay an average of £2,200 more per household, compared to those setting up more traditional contracts.

It has launched a new Energy Advice Service to support students it says may not have opted for an unlimited contract if they had been aware of the extra cost.

Two providers of unlimited energy contracts responded, describing the findings as "inaccurate", and urged students to research deals before deciding what to sign up to.

In extreme cases the Union's research shows students could be asked to pay £3,280 more than they would typically need to pay with standard energy use.

The research received quotes from nine unlimited energy providers, including Epic Student Bills, FUSED, Split the Bills, Student Energy Group and Unihomes, comparing them against quotes from British Gas, EDF, Octopus and other traditional suppliers.

For a typical four-bedroom property in Reading's student area, individual contracts set up directly with the suppliers of water, wi-fi, and energy would cost around £223 per month, according to the students' union.

The research claimed that on average unlimited packages cost £408, however when we put this to the providers, Fused energy responded by saying it's average monthly cost was £369. 62.

It also pointed out that the standard variable contracts with energy suppliers can fluctuate, unlike its packages, which it says shows students are "happy to pay higher monthly bills to heat their homes all year without worry".

Reading Students' Union has launched a new Energy Advice Service

'I wish I had known more'

Ellie Buckley, a second year student, said she will pay £76 in bills every month on an unlimited contract.

She said: "We signed this contract in January 2025 as the energy company said if we did not, prices would rise.

"I wish I had known more about paying bills, as if I had, I may not have chosen to use a student utilities company as they tend to charge more."

Energy and sustainability director at the University of Reading, Dan Fernbank said: "Unlimited energy contracts are a popular option for students living with new friends because they prevent arguments about who pays what.

"We want to empower students with the knowledge to make informed choices about their energy supply and avoid unnecessary extra costs."

Jenny Smart said they did the maths and found that a traditional contract would be cheaper

In comparison, Jenny Smart, a third-year Business Management student, set up her bills with individual providers, and pays £48.78 a month for her utilities.

She said: "I worry a lot of students moving in together for the first time will be persuaded to go with the easy option and lose money that could be spent on more important things."

Vice-Chancellor at the University of Reading, Prof Robert Van de Noort is calling for other universities and energy regulators to "help students push back against this worrying trend".

Pressuring students is 'unacceptable'

The Student Energy Group, an unlimited energy contract provider, said: "We have always pledged to be open and transparent about our actions, and honest about who we are and what we do."

"To us that always meant no nonsense, no hidden fees and no confusing terminology so that we can give students more time to focus on what really matters - their studies."

Meanwhile provider Fused, a trading name of One Utility Bill, said the research "suggests that some companies target students' lack of knowledge, deliberately misleading or pressuring them to sign up.

"This approach is totally unacceptable and we go to great lengths to provide as much information as possible to our prospective customers.

"Nobody who signs up to Fused should be surprised that Unlimited Energy costs more than a traditional energy deal, in the same way you'd expect an unlimited mobile contract to cost more than a pay-as-you-go deal."