A British Gas customer says they managed to slash their monthly direct debit by £100 a month after using an online energy bills calculator.
The householder took to Twitter to thank money saving expert Martin Lewis after they followed his website's advice on how to check if your direct debit payments are too high. The thrilled customer said they are now saving a 'whopping' £100 a month after 'tackling' the energy firm over their payments.
MoneySavingExpert, 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.
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User @TheAdmiral2153e on Twitter said to Mr Lewis, who retweeted their remarks: "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".
Direct debit customers pay a set amount each month, regardless of how much energy they use, and can save more than £200 a year due to the cheaper rates offered, according to MoneySavingExpert.
The amount paid each month is determined by how much energy the customer is expected to use over the year, which is based on factors such as the size of their household and their previous usage. The total amount is then split into 12 equal installments.
However, if this amount has been overestimated and you end up paying for more energy than you have been using, your account will end up in credit. If that's the case, you can ask your energy firm to reduce your payments to balance your account. Energy suppliers are also required to refund customers any overpayments they have made when asked to under Ofgem rules.
MoneySavingExpert advises anyone who is on a direct debit plan to take frequent meter readings so that the amount of energy you use can be accurately tracked. The website also advises getting a smart meter as they will automatically send accurate meter readings to your supplier.
