I got £1k back thanks to Martin Lewis’ tip that lowered my energy bill too – move to make NOW to see if you’re due cash
A MARTIN Lewis fan has revealed how they managed to get £1,000 back thanks to a helpful energy bill tip.
In a blog post, the MoneySavingExpert founder said energy firms “build up a reservoir” of customer cash that can be claimed back.
He said that households who pay for their energy via monthly direct debit could be owed cash if they’re in credit.
Typically, your energy company will work out the cost of your energy for the year ahead and divide this into 12 equal payments.
However, to smooth things out over the period and avoid high bill shocks in the winter, customers are more likely to build up credit during the warmer summer months.
In his blog, Martin Lewis wrote: “Monthly direct debits are based on an estimate of usage, and these estimates can be dire, leaving many unnecessarily overpaying with too much credit or underpaying and getting into energy debt.”
So customers who have a high amount of credit right now would be right to query this and ask for a refund, Martin said.
One billpayer followed this advice and found out that they had over £1,000 credit with their supplier.
They told MSE: “We had over £1,000 with our energy supplier, after approaching them I got repaid and because I’ve been paying far too much in the first six months, they’ve reduced my direct debit from £265 to £112 per month.”
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.
How do I challenge my energy bill?
If you pay your energy bill by direct debit, then it is assumed that this monthly amount should be “fair and reasonable”.
If you don’t think it is, you should complain directly to your supplier in the first instance.
If you’re not happy with the outcome you can take it to the independent Energy Ombudsman to dispute, but there are a few steps before you get to that stage.
Your supplier must clearly explain why it’s chosen that amount for your direct debit.
If you’ve got credit on your account, you have every right to get it back – although some experts recommend keeping it there through the summer, so your bills don’t go up in the winter when you use more energy.
Your supplier must refund you or explain exactly why not otherwise and the regulator, Ofgem, can fine suppliers if they don’t.
To ask for a refund call your supplier or contact them online.
If you are disputing a bill, taking a meter reading is a must.
If it’s lower than your estimate, you can ask your provider to lower your monthly direct debit to a more suitable amount.
But beware so you don’t end up in debt later on with a bigger catch-up bill at the end of the year from underpayments racking up.
If you don’t have success in negotiating a lower payment then you can put in a complaint to the Energy Ombudsman.
How can I request a credit refund?
First, make sure your energy firm has the most up-to-date meter reading.
If your reading doesn’t match the energy use they have down for you, chances are they’ll want to update your monthly bills as you may not be paying the right amount anyway.
But if your meter readings are up-to-date and f you’ve been in credit for more than one month ask your energy firm to return the funds.
Each energy supplier has its own process for customers wishing to get a credit refund.
After submitting a meter reading to your online account customers should head to the payments page and click apply for a refund.
Check with your energy provider to find out how to request your money back.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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