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Supporting returning students to avoid expensive utility packages is one of the goals of a new Energy Advice Service launched at the ºÚÁϲ»´òìÈ.

Research by ºÚÁϲ»´òìÈ Students’ Union has shown how students using so-called ‘unlimited’ energy packages in private rented accommodation pay an average of £2,200 more per household, compared to those setting up more traditional contracts with individual utilities suppliers. In extreme cases, seen in the union’s research, students could be asked to pay £3,280 more than they would typically need to pay with standard energy use.

The students’ union's research found some student-focused letting agents are recommending expensive ‘unlimited’ packages, and pocketing commission fees. While students may think these deals are easier to setup and provide convenient fixed payments, many may be paying significantly more overall.

Professor Robert Van de Noort, Vice-Chancellor at the ºÚÁϲ»´òìÈ, said: “Companies are selling expensive energy contracts to young people that many may not need during a cost-of-living crisis. Many students are paying utilities bills for the first time, and it is very concerning to see companies targeting them to sign up for contracts that encourage profligate energy use or charging them for more than they need. This could be a national issue affecting thousands of vulnerable students all over the UK, not just those in ºÚÁϲ»´òìÈ. We're calling on universities and energy regulators to help students push back against this worrying trend.”

Dan Fernbank, Energy & Sustainability Director at the ºÚÁϲ»´òìÈ, said: “Unlimited energy contracts are a popular option for students living with new friends because they prevent arguments about who pays what. But beyond the financial impact, these packages promote environmentally unfriendly practices by encouraging unlimited energy use. We want to empower students with the knowledge to make informed choices about their energy supply and avoid unnecessary extra costs and energy use.”

Comparing providers

The research examined nine unlimited energy providers, (HOUSR Bills, Epic Student Bills, , Student Energy Group, FUSED, Split the Bills, Huddle, Uni Homes, Resooma, and Student Bills Company), comparing them against quotes from British Gas, EDF, Octopus, OVO and E.on. For a typical four-bedroom property in ºÚÁϲ»´òìÈ's student area, individual contracts covering water, Wi-Fi, and energy would cost around £223 per month, compared to £408 for unlimited packages. 

Ellie Buckley, an Education student in her second year, will pay £76 in bills every month on an ‘unlimited’ contract. Ellie said: “We signed this contract in January 2025 as the energy company said if we did not, prices would rise. I wish I knew more about paying bills, as if I had, I may have not chosen to use a student utilities company as they tend to charge more and their customer service has been very poor.”

Jenny Smart, a third-year Business Management student, set up her bills with individual providers, and pays £48.78 a month for her utilities. Jenny said: “My social media is filled with adverts from suppliers promoting unlimited energy contracts. They say they make paying bills easier and could even save me money, but we did the maths and paid much less using direct suppliers. 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.”

goes live

The new service aims to teach students about energy efficiency and how to save money by educating students about the true cost of unlimited packages. The service will provide practical guidance and 1-2-1 support on how to save energy, as well as guidance on setting up traditional utility contracts, which typically involves arranging separate accounts for electricity, gas, water and internet.  to stay updated on energy advice and access resources. The campaign aims to have national impact, helping students across multiple universities make better-informed decisions about their energy contracts.