Three urgent tips for anyone who pays for their energy bills by direct debit

Date:
Thu, 31 Mar 2022 08:31:47 +0000

Description:
Take action before tomorrows price hike

FULL STORY ======================================================================

Ahead of tomorrows energy price hike (1 April), Martin Lewis has outlined three tips for people who pay for their energy bills by monthly direct debit.

Tomorrow, the energy price cap is due to rise by an average of 54% . If you have never switched supplier or you were on a cheap fix that has now ended, your energy bills are governed by the price cap. Youre also on the price cap if your previous supplier went bust and you have moved supplier as a result.

If any of those scenarios apply to you, then make sure you read the following tips before the price hike takes effect. 1. Take a meter reading

On 31 March (today), you should take a meter reading and submit it to your energy supplier. This way, you can make sure that all the energy youve used
is charged at the cheaper rate.

Some people have asked Martin Lewis whether they should slightly inflate
their readings to take advantage of cheaper rates. However, he has correctly pointed out that this would be considered fraud. 2. Think carefully before ditching direct debit

With the colossal price hike coming tomorrow, some people are considering cancelling their direct debit. But, as Martin Lewis points out, although this will provide you with greater control over your bills in the short term, this move will cost you more money in the longer term.

If youre on typical usage and pay by direct debit, the price cap from 1 April is 1,971 per year. If you pay by pre-payment, its 2,017 per year. Of course, youd need a pre-payment meter to pay this way.

If you decide you want to cancel your direct debit and pay your bills quarterly, then the price cap is 2,100. That means youll pay around 6% more for your energy than if you stuck with a direct debit.

So, if youre thinking about ditching direct debit, keep in mind that its cheaper to pay this way than it is to pay quarterly. 3. Avoid switching for now

From 1 April until the end of September, youll pay 1,971 per year for your energy if your bills are governed by the price cap. However, based on what weve seen so far, the current prediction is that the price cap will rise to around 2,500 on 1 October.

Of course, estimates can change and were only two months into the six-month assessment period. However, Martin Lewis believes its very unlikely that Octobers price cap will be lower than the April price cap because wholesale prices are currently so high.

Based on these figures, Martin Lewis believes its only worth considering switching if you can find a deal thats no more than 18% to 20% higher than Aprils price cap. However, he says this is a best guess.

Sadly, for new customers, the best energy deals from the countrys best energy suppliers are around 40% higher than Aprils cap. As a result, as things stand at the moment, it is not worth running an energy comparison and switching supplier. Instead, youre better off staying on the April price cap and seeing how things change in the coming months.



======================================================================
Link to news story: https://www.techradar.com/news/three-urgent-tips-for-anyone-who-pays-for-their -energy-bills-by-direct-debit/


--- Mystic BBS v1.12 A47 (Linux/64)
* Origin: tqwNet Technology News (1337:1/100)