No one thought the price of energy would ever get this high, from October the average household will soon be expected to pay over £3,000 a year on the gas and electricity bills. But if you pay by direct debit, you could be due some much needed money back from your supplier.
Many households, including myself, are facing pressures of the 'never-ending' price hikes. I was sick to my stomach when I realised our energy bill at home was creeping up to nearly half the amount of our monthly rent. From autumn the energy price cap is expected to rise by 78%, which will cost the average household nearly £300 per month.
Those who pay by monthly direct debit will receive a statement every three to six months, showing their latest payments and the amount of credit or debit that their account is in. As someone who has only lived away from home for the past two years I was unaware that by paying by direct debit often meant we were sometimes paying for more than what we were using.
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After the prices went up in April of this year I was extremely surprised when our updated statement was posted through the letter box. Instead of the anticipated 'you owe us more' letter, EDF actually owed us £173.67, this was because our usage was lower than the average direct debit amount, meaning we had been paying for more than we were using.
If you pay your energy bill by direct debit you might be owed money by your supplier, but knowing what to do with it could help with the added costs this coming October. Instead of asking your supplier to refund the money back into your bank account straight away, Citizens Advice suggest keeping the extra cash flow on your account.
This way the added money from the spring and summer months will cover the higher bill that is expected in winter, and decrease your chances of getting into debt with your supplier.
This way has definitely taken the added pressure off our shoulders, as its money we didn't realise we had overspent. Although it's not expected to last long with the added price hikes in October, we've decided to keep the money on our account to put towards the increased monthly bill.
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