Customers of OVO, E.on, Octopus, EDF and British Gas given £138 alert | Personal Finance | Finance
Customers of energy firms such as OVO, E.on, Octopus, EDF and British Gas are being advised that a simple change could save them an average of £138.
MoneySupermarket has calculated that individuals can adjust their accounts to save this sum, particularly relevant given the anticipated rise in the Energy Price Cap this winter, with an announcement due this week.
Energy specialists have pointed out that millions of UK households could shave off £138 from their annual energy costs by altering their payment method.
Data from the Department for Energy Security and Net Zero reveals that approximately 12%2, or 3.4 million households opt to pay by standard credit, often referred to as ‘Paying on Receipt of Bill,’ meaning that collectively, they could be shelling out up to £459 million more annually than Direct Debit customers.
It is typically more common for older individuals to choose to Pay on Receipt of Bill, but for pensioners on their supplier’s SVT, the cost of Paying on Receipt of Bill could consume as much as 69% of their Winter Fuel Allowance if they don’t act.
Energy experts at MoneySuperMarket Energy are urging individuals to ensure they or their family members don’t ‘get left behind’ as competition in the energy market intensifies, with the best deals being offered to Direct Debit customers.
Households opting to Pay on Receipt of Bill might also discover they’re excluded from the finest energy deals, with numerous top offers typically demanding customers pay via Direct Debit to be eligible.
With an array of competitive tariffs currently available in the marketplace, households can save an average of £2,715 annually by switching their supplier, according to MoneySuperMarket.
MoneySuperMarket’s energy expert, Laura Hinton, remarked: “With energy bills expected to rise once again this winter, it’s important for households to act now by taking stock of their energy bills, switching provider and revaluating how they pay for their energy.
“As well as switching, if you choose to pay your energy bill by cash, bank transfer or cheque out of habit, making one small change to paying by Direct Debit could mean an extra saving of £138 per year.
“For most people switching energy is surprisingly quick and easy to do. So, if know someone who could save money by moving to Direct Debit or switching their energy provider, it’s a great time to spend a few minutes helping them find a better deal, as they could save a significant amount of money – especially once summer is over and energy use increases over winter.”
MoneySuperMarket’s Top 5 tips for saving money on your energy bills:
Turn it off – Switching off unused lights and appliances could save up to £537 a year.
Replace them – Swapping your bulbs with LED ones could save you £45 a year. Pay By Direct Debit – The majority of the best deals on the market necessitate payment by Direct Debit, with those who pay upon Receipt of Bill being charged an additional £138 annually on price capped tariffs.
Plug the draught – Preventing heat from escaping through unwanted gaps could help you save up to £40 a year, but professional draught-proofing could result in even greater savings.
Shop around – Switching to a new energy deal could lead to annual savings of up to £2,715.
