Martin Lewis says May marks the bottom of the curve for the energy direct debit cycle, when you will be most in credit.
UK households who pay for energy by Direct Debit told to ‘challenge’ supplier
An expert has warned it could be worth challenging energy suppliers if you are sitting on too much credit. BBC and ITV star Martin Lewis says May marks the bottom of the curve for the energy direct debit cycle, when you will be most in credit.
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.
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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 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.”
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.”
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.”
