UK households who pay for energy by Direct Debit are being urged to 'challenge' their supplier if they have built up too much credit. Money Saving Expert Martin Lewis has highlighted that May marks the bottom of the curve for the energy direct debit cycle, meaning customers are likely to be most in credit at this time.
Expert Advice on Checking Your Account
Angus Struthers, managing director at home heating and cooling company BOXT, explained that direct debits are designed to smooth out monthly energy bills, but they only work effectively if the supplier has accurate information. He noted that if bills are based on estimates or energy usage has changed, customers could be overpaying significantly or, conversely, building up debt.
Mr. Struthers advised: '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.' He added that with energy rates expected to rise, ensuring account accuracy now could prevent a nasty surprise later in the year.
The Cost of Overpaying
The expert pointed out that even small overpayments can accumulate. Overpaying by just £25 per month results in £300 sitting in the supplier's account over a year. While some summer credit is normal to balance higher winter usage, if credit keeps growing or bills are based on old readings, customers should challenge their supplier.
Customers are advised to check whether their direct debit is based on actual meter readings or estimates, whether their smart meter is sending readings properly, and whether their tariff, unit rates, standing charge, and payment method are correct.
Potential Savings and Boiler Maintenance
Mr. Struthers noted that a refund might not cover a new boiler, but it could fund 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 per year for a detached four-bed home, making home efficiency improvements a long-term benefit.
He also recommended servicing boilers in summer before demand increases in cold weather. A boiler that is not serviced regularly can lose efficiency, leading to higher bills. Additionally, checking radiators, thermostats, heating controls, and thermostatic radiator valves now can prevent gradual energy waste over months.
