Students warned to beware hidden costs of bill-splitting firms

theguardian.com:

For students moving into shared accommodation this month, it’s an alluring prospect: the chance to dump the headache of bills on to a friendly agent who will sign the household up to essential utilities, roll the charges into a fixed monthly sum, and then bill each housemate separately for their share.

Bill-splitting companies pledge to take the hassle out of student life, removing the stress of ensuring tenants pay their share.

However, students are being warned to beware of high tariffs, hidden fees and opaque terms and conditions. Some firms are quoting energy and broadband packages at nearly double the rate available direct from suppliers, and many are not signed up to the Energy Ombudsman, which mediates on behalf of customers when things go wrong.

These firms, which have proliferated over the last 10 years, pay to appear at the top of internet searches for “student energy deals”. Matey jargon declares they exist to allow their young customers to get on with studying and partying. “Keep your friendships friendly, and let us manage the boring stuff,” urges one. Another boasts: “We like to see ourselves as your favourite housemate.”

A few will save time and hassle for those on generous budgets. But dig down into the small print of most, and a murkier picture emerges.

The fixed monthly sum quoted is supposed to shield customers from “bill shock” if energy prices rise or fall. While a few deals include unlimited use, buried in the terms and conditions of many is the caveat that a catch-up bill will be issued if a household exceeds an annual, often unspecified, allowance of energy.

None of the websites checked by the Observer detailed how packages were costed to allow customers to compare them with other deals. Unlike energy