Be a bright spark when it comes to energy bills

MILLIONS of households are owed an average £126 from their energy firm, while millions of others are in debt and in arrears to their supplier by an average £122.

How can this be? And what should you do whether you are in credit or in debt?

We chatted to Sarah Broomfield, energy expert at comparison site uSwitch.com about what you need to know...

How can I find out if I’m in credit to my supplier?

If you manage your bills online, you can easily log in to check your account balance. If not, simply take a look at your latest energy bill or call your supplier.

While some suppliers refund automatically, it’s still worth keeping an eye on your bills. Uswitch research found over half of bill payers have to chase their energy firm to get money back.

Why am I in credit?

Energy bills, particular those paid by direct debit, are estimated based on your use for previous years. If your consumption changes, direct debits and estimated bills won’t reflect this. It’s been a mild winter, leaving many households in credit.

How can I get a refund from my supplier?

Get in touch with your supplier and ask for a refund. A word of warning, though – even if you are in credit, it’s a good idea to discuss your balance with your supplier.

Your direct debit should have been worked out to cover your expenditure over the year. However, if you find yourself more than one month in credit, it’s usually safe to ask for your money back.

What if my supplier refuses to refund me?

If your supplier refuses to refund you and you don’t agree with the reasons given, you can raise the issue with the Energy Ombudsman at ombudsmanservices.org/0330 440 1614.

What can I do to make sure my bills are as accurate as possible?

Avoid over or underspending on energy by providing regular meter readings to your supplier. It’s best to do this at least once every three months.

How can I cut my energy bills?

Switch and save. The easiest way to noticeably cut costs is to shop around and switch supplier. It’s easy to do and only takes a few minutes – and you could save up to £300 a year compared to the price cap in some cases.

■ Thermo-watch Now that the weather is starting to get a little warmer, turning your thermostat down by just 1°C can save as much as £85 per year. ■ Meter readings Submit them on a regular basis. Once at the start of each season is good.

■ Wash clothes at 30°C Around 90% of a washing machine’s energy expenditure is used on heating the water – the lower the temperature, the more you save. ■ Draught proof Ensure you have loft insulation and, if you have a chimney, consider fitting a chimney balloon to prevent cooler air entering your home.

■ Turn off tech Leaving televisions and games consoles on permanent standby costs £45-80 a year per household. Meanwhile, we collectively waste nearly £29m per year by leaving phone chargers switched on when not charging mobiles.

■ Bleed radiators This releases any air caught inside, making them run more efficiently.

What should I do if I’m in debt to my energy supplier?

Call or write to your energy supplier to discuss or explain the situation. As well as giving you tips on ways to avoid getting into energy debt in the first place, your supplier can set up a repayment plan so you can clear the debt gradually. They are not required by law to offer you an affordable way of repaying your debt, but they are likely to.

These repayments can be weekly, fortnightly or monthly, and will include a portion of your current use as well as the debt. If you’re already on a repayment plan, but can’t manage the payments, you may be able to renegotiate with your supplier to make it more affordable.

Ask if they have a cheaper tariff that you can move to, thereby paying off the debt a bit sooner.

Is there any extra financial help and support available?

There are various schemes:

■ The Winter Fuel Payment A contribution from the Government to help the elderly pay for their energy over the winter months. While most people are enrolled automatically, you should check if you’re unsure whether you qualify.

■ The Cold Weather Payment Similar to the Winter Fuel Payment, but very rarely comes into force. It’s a £25 payment for each week that the temperature drops below zero degrees Celsius for seven consecutive days. The payment is only available for extreme cold weather snaps that occur between November 1 and March 31.

■ The Warm Home Discount You could get £140 off your electricity bill. The money is not paid to you – it’s a one-off discount on your electricity bill, between September and March. You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity.

Contact your supplier to find out. The Warm Home Discount Scheme for next winter will start on October 14.

Leaving televisions and games consoles on permanent standby costs £45-80 a year per household