Split the bills companies work like this - you provide your information to sign up to the services and refer your housemates to do likewise. The ‘split the bills’ company sets you up with providers they use and make the payments to each. The bills are then split evenly between all housemates so each person pays their fair share.

On the surface this can seem like a great opportunity to have all the worry about your bills kept to a minimum in exchange for a small fee, but for students like George, this couldn't have been further from the truth. 

George came to us for help after receiving a final bill which he and his housemates disputed. The final bill for the broadband, utilities and TV license came to £780 and not the expected amount of £150 they had been quoted to pay each month. When George inquired further as to why they had to pay so much he was informed by the company that his household had used excessive amounts of energy and had not updated their meter readings. As per the terms of the contract the company told George they could add the cost on as additional charges and they had to pay. 

George’s housemate who agreed the contract had chosen unlimited*, had taken on the responsibility of running the account and had not given meter readings. He had also failed to pay his share of the bills for the previous two months. Unknown to George and all his housemates, as it is with most young people who sign up to ‘split the bills’ companies, is that you can still be held liable for another housemates share if they do not pay.

When George decided to confront his housemate about the bill he came to find he had moved out and left no contact details. The ‘split the bills’ company was now going to split the final bill four ways and not five. George now faced an all too familiar dilemma and unfortunately, was bound by the terms of his contract and had to pay someone else's share of the bills.

For all the convenience it gives to just pay one bill for everything it can come at a cost. You will almost always have to pay more than if you did it all yourself as there is no guarantee the company will do their best to find you the cheapest deal. There is also the possibility of facing hidden costs.

‘Split the bills’ companies exist only because there is a fear of having to trust new housemates and take on the sole responsibility of being in charge of the bills.

That fear doesn't have to exist if you’re well informed. With careful management bills can become one less thing to worry about so you can focus on completing your education and taking those first steps towards a career.

At Citizens Advice Manchester, our Switched On Project is running energy advice workshops to help young people manage their bills and energy usage. In November and December we’re running two workshops specifically for young people living in flatshares - we’ll cover how to choose the cheapest supplier, how to talk to your housemates and decide how to split the bills, how to keep up to date with payments, solve disputes and much more. Click the following link to book your spot and join us at our workshops: https://www.eventbrite.co.uk/o/citizens-advice-manchester-31076639305

For more information on all things energy, you can follow us on twitter and instagram for daily energy advice @SwitchedOnMCR.

* These days you have two options when it comes to “split the bills” suppliers and your electricity and gas usage; limited and unlimited. Limited is where you're given an allowance of what energy usage you can use before you have to pay extra. The 2nd option is unlimited where you are subject to pay only a flat fee for any amount of energy you use. The catch? For energy usage which constitutes being negligent or wasteful the company will charge you.