The four reasons your new energy bill could be wrong – and how to fix it

HOUSEHOLDS have been sharing their rocketing energy bills with prices set to soar next month.

Social media posts have shown that some energy customers have been told they will have to pay thousands of pounds each month for their gas and electricity – here is why your bill could be wrong.

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Record wholesale gas prices have already pushed energy bills to new highs.

They could increase further next month when the energy price cap rises to £1,971.

This reflects the increased costs of sourcing and supplying energy, while consumers are also limited by a lack of choice as more than 30 smaller and usually cheaper suppliers have gone bust over the past year.

Energy companies have begun emailing customers with details of their new tariffs in April, with many people on standard variable deals facing large increases.

In one example, a British Gas customer shared on Twitter that his bill was rising to £2,000 per month or £21,000 a year.

This is most probably an error but with the price cap rising from £1,277 to £1,977, households face paying almost £700 per year extra.

It may not be possible to switch to a better deal at the moment due to a lack of competition and high prices but there are still some ways to bring your energy bill down or at least make sure it more closely reflects your usage.

Here are some of the reasons your energy bill could be too high:

Irregular meter readings

If you use a standard meter, your energy bill is set each month based on your usage.

Your energy supplier tracks how much gas and electricity you have used from readings of your meter.

If you don’t provide these, the supplier will estimate them, which could lead to errors if they overestimate your usage.

Instead, you could provide regular meter readings.

This can often be done by setting up an online account with your provider or through its app.

Alternatively, you could see if your supplier will setup a smart meter, which helps you track your usage and also automatically sends readings to your provider.

Some households have warned about smart meters recording usage incorrectly though.

We’ve looked at how smart meters work and the benefits – as well as the downsides.

Not paying by direct debit

More than half of households pay for their energy by direct debit, according to the regulator Ofgem.

This helps spread out the payments over the term of your contract.

A supplier will estimate your usage based on previous bills and set how much you should pay each month.

This may mean building up credit, especially in the summer months when you use less energy or a debt in the winter if you use more than anticipated.

But a direct debit gives you certainty and helps you budget.

The alternative is to pay the full amount based on what you used over a set period such as a quarter.

This is likely to be higher, which can be unpredictable and harder to budget for.

You can usually change how you pay by calling your supplier or changing your details online.

There is often also a discount for paying by direct debit.

Using a prepayment meter

Not everyone has standard meters that give you power all of the time.

Around 4.3million people in the UK are on prepayment meters.

They are often used in homes that have fallen into debt so a customer can manage their bills better or by landlords in some rental properties.

Users have to top up a prepayment meter in advance in the same way you would make sure you have enough credit on a pay-as-you-go phone.

You can usually top up these meters at recognised PayPoint andPayzone shops or at the Post Office.

Households only spend money on the energy they use, but the prepayment tariffs on offer from suppliers are usually more expensive than standard meter deals so you could be spending more on your gas and electricity.

Martin Lewis recently urged some prepayment meter users to stockpile energy if it meant they could avoid the energy price cap increase in April – but you should check with your provider first.

It may also be worth asking your current supplier if you can switch from a prepayment meter to a standard one to save money.

There may be a charge for doing this but you could make savings over the long-term by paying a lower rate for your energy.

Renters don’t have to ask for their landlord’s permission to get a meter replaced but you may have to get it changed again at the end of the tenancy if a landlord wants to put a prepayment meter back in.

You need to be sure that you can afford the repayments and you may need to clear any debts on the account and pass a credit check.

If you would rather not have a credit check, a supplier may let you pay a deposit based on your usage.

Citizens Advice says the deposit is usually based on three months’ energy usage and can cost between £150 and £300.

Not claiming energy bill support

Low-income customers or those on benefits may be able to get support to help pay energy bills, which could save you money.

Older people can get winter fuel payments of between £100 and £300 towards their heating bills during the coldest months of the year.

The payments are made automatically during November or December to those receiving the state pension.

If you aren’t taking the state pension yet or don’t qualify for it then you may need to apply separately for the winter fuel payment.

The deadline for this year has already passed but you can apply for next winter on the.

Low income households can also get help with their bills during the winter months if average temperatures fall below zero degrees over the space of a week.

People on pension credit, income support, jobseeker’s allowance, income-related employment and support allowance or Universal Credit can get £25 a week to help with energy bills paid automatically.

Low income households can also get £140 off their bills between October and March under the warm home discount scheme.

The discount is only available if your supplier has chosen to offer it.

Older people receiving the guarantee element of pension credit are eligible for the discount – known as the “core group” – and should receive a letter by December about how to get it.

Outside of the “core group,” You may still be eligible if you receive certain means-tested benefits such as Universal Credit.

Here are some other ways you can save on your energy bills.

Some suppliers also have schemes to give people on low incomes cheap or free insulation that could reduce your bills by cutting how much energy you waste.

It is part of the Affordable Warmth scheme.