Consumer champion Sarah Ingrams from Which? has identified six common energy bill mistakes that could leave households paying more than necessary, following the 13% rise in the energy price cap on July 1st. The price cap, which sets the maximum amount suppliers can charge per unit of gas and electricity, is expected to remain high in October.
Forgetting when your fixed deal finishes
Sarah warns that fixed energy deals typically last 12, 18, or 24 months. When the deal ends, customers are automatically moved to the supplier's default tariff, which is determined by the price cap. Suppliers must send a reminder 49 days before the tariff ends, but customers can check their end date on the supplier's app, online, or on a statement. Switching without an exit fee is possible within the last 49 days of the tariff.
Relying on 'average' quotes
Energy suppliers and price comparison websites often offer estimated prices based on low, medium, or high usage. However, Sarah cautions that these averages may not match actual consumption, as Ofgem recently lowered the amount of gas and electricity in each scenario. She advises customers to use their actual usage data from their online account or statement to get accurate quotes.
Believing bigger is better
According to Ofgem, about 92% of households are supplied by British Gas, Octopus Energy, EDF Energy, E.on Next, Ovo Energy, and Scottish Power. Which? research shows significant differences in customer service and value for money among these providers. Octopus Energy is a Which? recommended provider, while some other big names rank poorly. Sarah encourages considering smaller suppliers for better deals and service.
Being convinced by switch rewards you don't need
Rewards for switching suppliers, such as boiler cover, can be tempting but may not be worthwhile. Sarah advises checking if you already have insurance covering the reward or if buying it separately is cheaper. Some tariffs offer different rates for using or saving energy at certain times, but customers should consider whether they can adapt to such schedules.
Not reading the terms and conditions
Sarah stresses the importance of reading the small print in energy contracts. Suppliers highlight the best features but may not disclose downsides. Customers should check exit fees, tariff length, direct debit amounts, and whether energy usage at certain times incurs extra charges. The Warm Home Discount scheme and preferential rates for solar customers may also be included or excluded.
Forgetting to take a meter reading
Smart meters automatically send readings to suppliers, but if you don't have one, submitting a monthly reading is crucial to build an accurate usage picture. Sarah recommends checking your account to ensure readings are registering; any marked as 'E' or 'estimate' indicates a problem.
