A British Gas customer was able to slash his energy bill by £100 thanks to a money saving tip from Martin Lewis.
@TheAdmiral2153e took to Twitter to thank the money saving expert for helping him save some extra cash.
They said: “@MartinSLewis Just wanted to say thanks because of you and your energy calculator and recommendations I have tackled British Gas over our direct debit amount and from next month we’ll be paying a whopping £100 per month less – result.”
MoneySavingExpert.com, which was founded by Mr Lewis, provides an online calculator for direct debit customers that allows them to work out how much they should be paying their energy supplier each month based on their usage.
Energy providers base monthly direct debits on an estimation of energy used.
However, these estimates can leave many people overpaying with too much credit or underpaying and getting into energy debt.
It is suggested that Britons give regular meter readings, or get a smart meter, so the energy firm doesn’t have a way to blame individuals.
There are two types of direct debits: fixed and variable direct debits
With a fixed rate, people will pay the same amount on the same day every month. If their agreed payment date falls at the weekend or on a bank holiday, their energy provider will collect payment on the next working day.
The amount people pay is based on their recent energy usage and any outstanding balance.
Providers try to review one’s payments regularly to check they are right for the amount of energy they’re using.
A variable direct debit is paid when people use it as shown on the bill. This means people may pay less in the summer and more in the winter.
On their website, British Gas explain how they calculate bills.
“The amount you pay is based on your recent energy usage plus any outstanding balance spread over 12 months. For example:
- Annual energy usage = £1200
- Outstanding balance = £600
- Total = £1800
- Divided by 12 = monthly payments of £150
“If we don’t have an up-to-date meter reading, we base the amount on an estimate of your energy use. Avoid estimated bills by giving us a meter reading.
“If it’s summer and you’re using less energy, you might find you’re in credit. Your payments will balance out when you use more energy over the winter.
“We review your payments regularly. If you’re paying too much or too little, we’ll recommend a change so your payments are right for the energy you’re using.”
