A HIGH street bank and electric company are at the centre of a cash controversy that has left Lancaster people out of pocket.

Customers trying to pay their Powergen electricity bill at the Natwest Bank have faced a surcharge if they do not have an account with the bank.

That was an error at the Lancaster branch - which has now apologised.

The back of Powergen's bills advises customers of the various ways to pay for their power. They can take out a direct debit, pay by computer or telephone banking or pay by cash or cheque at a bank.

The instructions state: "You can pay by cash or cheque at your own bank or any branch at Natwest (other banks may make a charge for this).

That would suggest there is no surcharge at the Natwest.

But the Church Street branch has been charging anyone who doesn't have an account with them £5 for the service. And that is an error by staff members at the branch, on Church Street in the city.

A spokesman for Powergen says: "All Powergen customers should be able to pay Powergen bills at all Natwest branches by cash and by cheque free of charge, regardless of whether they are a Natwest customer.

"Natwest has recognised that this case is due to a training issue. They are therefore currently re-briefing staff at the branch in question to ensure Powergen customers are not being given additional charges."

A spokesman for Natwest apologised to any customers who may have been charged, saying it was an error at the Lancaster branch.

"We have an arrangement with Powergen that there is no charge for payment of their bills," he says.

"We apologise and we will speak to the branch and remind them about this matter."