Martin Lewis’ MSE reveals calculator which shows if YOU could be owed £178 in energy refunds as bills to drop in DAYS
MARTIN Lewis's MoneySavingExpert.com (MSE) has shared a calculator which shows the exact amount you could be owed by energy suppliers.
The new tool will estimate how much you have overpaid your energy supplier if you pay by direct debit.
Although paying by direct debit can save you on average £100 a year, suppliers base your payments on your usage over the whole year.
But they don’t always get this figure right, meaning you could end up overpaying.
Mr Lewis said on X, formerly known as Twitter: "Suppliers are holding £3.7billion of your cash in credit."
How does the calculator work?
The MSE calculator will estimate the amount you should be paying for your usage under the new April 1 Energy Price cap.
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If the number is different to your current direct debit, you may need to look into getting it amended.
All you need to do to use the calculator is enter your energy usage and the region you live in and the calculator will do the rest.
You can find your usage on your most recent energy bill. If it lists a monthly usage you will need to multiply it by 12.
The calculator can only be used to calculate standard tariffs under the price cap, not fixed deals.
You must be living in England, Scotland or Wales to use the calculator and must confirm your region as rates differ across different areas.
The calculator will not factor in any debt or credit on your account.
April's Energy Price cap
The energy regulator Ofgem has confirmed the new price cap, which comes into effect on April 1.
The cap will fall from the current average of £1,928 a year to £1,690 a year, the fresh figures show.
The energy regulator said it will cut the price a supplier can charge for gas from 7.42p per kWh today to 6.04p from April 1.
This means the average household could see their annual bill drop by £238.
The cap will change again in three months so your annual bill could still change.
It's important to remember the cap limits the amount suppliers can charge per unit of energy, it is not a cap on the total amount you'll be charged.
How to get a refund?
If a customer has accumulated credit and asks for it back, suppliers must refund it.
If the supplier thinks the credit should be withheld, the reasons why must be clearly explained but customers can challenge this.
Although it is up to the supplier to determine what is considered a “fair and reasonable” excuse to keep the credit, you can file a complaint with them.
If you are still not happy with the response you can dispute the claim with the independent Energy Ombudsman.
How to beat unfair Direct Debits?
Make sure you send your supplier regular meter readings so that don't have to rely on estimates when setting your direct debit.
If you are heavily in credit to your energy supplier you can ask for it back.
Ofgem reported at the end of last year the average household energy account was in credit by £178 - roughly one month’s bill.
If you believe you're paying too much per month you have the right to ask for it to be lowered to reflect your actual annual usage and meter readings.
If your supplier doesn’t take you seriously over the phone you can write a letter making a formal complaint.
Check you don’t have any debts on the account first, as this could be the reason why you have a higher direct debit.
How do I calculate my bill?
Below we reveal how you can calculate your own energy bill.
To calculate how much you pay on your current bill, you will need to find out both your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.
The standing charge is a daily charge that is paid 365 days of the year - irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type - this will give you your usage costs.
You'll then need to multiply each standing charge by 365 and add this figure to the totals for your usage - this will then give you your annual costs.
Divide this figure by 12 and you'll be able to work out how much you should expect to pay each month from April 1.
What other support is available?
Households should check whether they qualify for energy support schemes or grants.
The Government runs the Warm Home Discount scheme, which provides £150 in energy credit to help with bills during the winter months, and it has recently introduced the Great British Insulation Scheme.
Councils also offer the Household Support Fund.
Many suppliers have customer support funds offering home insulation, energy-efficient white goods and cash grants.
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Here's a list of schemes open right now:
- British Gas Energy Trust Individuals and Family Fund
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next Grants
- Octopus Energy Assist Fund
- OVO Energy
- Scottish Power Hardship Fund
Do you have a money problem that needs sorting? Get in touch by emailing squeezeteam@thesun.co.uk.
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