Energy bills £300 alert for anyone who pays this way- it’s ‘worth challenging’ | Personal Finance | Finance

Energy customers may want to consider challenging their bills as they could be significantly overpaying. The call to action comes after Martin Lewis recently called attention to the common issue.

There is a risk you can end up paying too much at this time of year if you pay for your energy through direct debit. This is because the beginning of May is the bottom of the curve for the energy direct debit cycle, when you will be most in credit.

So it’s worth doing an up to date meter reading to make sure you are being charged correctly, and that you are not too much in credit. If so, you could request some money back from your supplier.

Angus Struthers, managing director at home heating and cooling company BOXT, said: “Direct debits are meant to stop your energy bills swinging wildly from month to month. But they only work properly if your supplier has the right information.

“If your bills are based on estimates, or your energy use has changed, you could be paying far more than you need to, or not enough and slowly building up debt.” He explained the key details you should check.

Worth asking why

Mr Struthers said: “The key things to check are your account balance, recent meter readings and monthly payment amount. If you’re sitting on a chunky credit balance, it may be worth asking your supplier why.

“And with energy rates expected to rise, making sure your account is accurate now could help avoid a nasty surprise later in the year.” He pointed out how overpaying a small figure regularly can add up to a big amount over time.

The expert said: “It can add up quickly. Overpaying by just £25 a month means £300 is sitting in your supplier’s account over a year, rather than in yours. Some summer credit is normal, as it helps balance out higher winter use.

“But if your credit keeps growing, or your bills are based on old readings, I would say that it is worth challenging. Your direct debit should reflect what you actually use, not just what your supplier guesses.”

He broke down how to make sure your bill is correct. He said: “Check whether it is based on actual meter readings or estimates, whether your smart meter is sending readings properly, and whether your tariff, unit rates, standing charge and payment method are correct.”

Energy-saving habits

If you are looking to reduce your energy costs, Mr Struthers said it’s worth thinking about your heating and your hot water costs, as these can be two of the biggest parts of your energy bills. It may be worth paying for a more efficient boiler over the long run.

The expert said: “A refund may not pay for a new boiler, but it could go towards a boiler service, better heating controls, or planning for an upgrade. BOXT analysis shows that moving from a G-rated boiler to an A-rated model could save up to £572 a year for a detached four-bed home, so putting that money back into home efficiency could pay off long term.”

Now is also a good time of the year to get ahead and check over your home before the cold weather returns for next winter. Mr Struthers said: “Summer is actually one of the best times to service a boiler, before demand ramps up again in the cold weather.

“A boiler that is not serviced regularly can lose efficiency, which may mean higher bills once the heating goes back on. Radiators, thermostats, heating controls and thermostatic radiator valves are also worth checking now, as small faults can gradually waste energy for months.”