As households face another rise in energy prices, a consumer expert has shared her ten checks everyone should be making to help keep their bills down.
Jane Hawkes, who runs the consumer advice website www.ladyjaney.co.uk, says the changes coming into force on 1st October make now the right time to give your energy account a five-minute MOT.
“The latest Ofgem price cap will rise by another 4% between October and the end of the year with the typical household paying by direct debit seeing their annual energy bill rising from £1,663 to £1,723.
“At a time when everyone is feeling the pinch, everything you can do to make sure you get the best value for your energy you should do.
“This rise comes despite the temporary removal of VAT from domestic electricity bills from 1st October. While this will reduce the cost of electricity, don’t assume it will mean your overall energy bill will fall.
“Higher wholesale gas prices mean that the overall price cap is still increasing with much of the rise being driven by gas costs.
“A monthly Direct Debit can make it easy to lose sight of the underlying unit cost, standing charges and your actual consumption. Rather than just rely on finding a different tariff, you should calculate, monitor and reduce your energy usage.
“Also check in on your energy use across the year to avoid ending a contract with an unexpected outstanding debt and if a bill doesn’t look right then query it. It can also help you make adjustments to energy usage or increase monthly direct debits to spread the cost across the year.
“Before and after the October price-cap change, take five minutes to give your energy bill an MOT. These are my ten checks that could help you spot an error, avoid paying more than necessary and make sure your tariff still suits the way you use energy.”
Here are Jane’s ten tips for an energy MOT.
Check your meter reading before the 1st October
Take a meter reading around the 1st October and photograph it. Keep the dated reading in case you need to query your bill later.
Don’t automatically accept a higher Direct Debit
If your supplier increases your Direct Debit, check how they’ve calculated it. It should reflect your expected usage and account balance. If you’ve built up significant credit, ask whether a refund is appropriate.
Check exactly what you’re paying for
Don’t just look at your monthly payment. Check your bill for current usage, outstanding balances or debt repayments. When comparing tariffs, look at unit rates, standing charges and estimated annual costs.
Don’t forget when your fixed deal ends
Make a note of when your fixed tariff ends so you don’t automatically roll onto another tariff. When the time comes, compare your options, including rates, standing charges, exit fees and the length of the deal.
Think carefully about Economy 7
An Economy 7 tariff is a split-rate electricity plan that provides 7 cheaper hours of energy overnight alongside a higher rate during the day – and it isn’t automatically cheaper. It can work well if you use plenty of electricity overnight, particularly with storage heaters, electric hot water or an Electric vehicle. However, if most of your electricity is used during the day, a single-rate tariff could work out cheaper. Check your actual usage before switching rather than being tempted by a cheap overnight rate.
Check whether you’re eligible for help
If you’re struggling with energy costs, check whether you qualify for any available support. Don’t wait until you’ve missed payments before contacting your supplier as they may be able to offer help or an affordable repayment arrangement.
Don’t ignore a bill that doesn’t look right
Check your meter readings, whether they’re actual or estimated, your unit rates, standing charges and tariff. If your usage suddenly looks much higher than normal, investigate it rather than simply accepting the bill.
Take action if you think there is an issue with your meter
Inform your supplier if you think your energy use seems completely out of line with normal consumption and if you suspect your meter is faulty. Keep copies of bills, readings and correspondence in case you need to make a complaint.
Be skeptical about miracle energy-saving gadgets
Be wary of gadgets promising huge energy savings simply by plugging them into a socket. If something sounds too good to be true, make sure you do your research before spending money on any gadgets that could end up being worse than useless.
Don’t just concentrate on your tariff
A cheaper tariff can help, but so can using less energy. Look at your heating, avoid heating empty rooms and use your heating controls effectively. Washing at lower temperatures and only running full appliances can also help.
Give your energy bill a 5 minute MOT
Before and after the price cap changes, spend five minutes checking your tariff, unit rates, standing charges, meter reading and account balance. If something doesn’t make sense, ask your supplier to explain it.
