Is My Energy Direct Debit Too High?

Start with your expected annual cost

Multiply your annual kWh by your unit rate for each fuel, add 365 days of standing charge, and convert from pence to pounds. Divide by twelve for the average monthly cost. Compare that with what you are paying.

Then adjust for the balance

If you are in debit, a payment above the average monthly cost is expected — it is clearing the shortfall. If you are in substantial credit and the payment is still above the average, that is the combination worth questioning.

Check the quality of your readings

If your consumption figure comes from estimates, so does the answer. Submit a reading and redo the comparison before you act.

Allow for the time of year

In late summer a healthy account carries credit. In early spring it should be close to level. The same balance means different things in different months.

Common warning signs

• Twelve months of payments exceed your estimated annual cost with no debit balance to clear.
• Credit keeps rising through the winter.
• The payment rose while your kWh consumption fell.
• The supplier's annual consumption figure does not match your own statements.

What to do next

Submit a reading, run the numbers, and ask for a review in writing with your figures attached. If the supplier cannot explain the difference, treat it as a complaint.