Will lots of account reviews be needed in the spring?

  • 23 November 2020
  • 4 replies
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Spotted in yesterday's Sunday Times:

Homeowners will use more gas and electricity this winter as more people work from home, using the heating for much longer periods.

Home working is set to increase energy bills by about £107, according to an estimate by the comparison firm Energyhelpline. This adds about 18 per cent to the average annual bill. In total, the firm estimates homeowners will fork out an additional £1.9 billion on energy bills this winter.

Many customers are already in debt to their supplier at a time when they should be in credit before the winter, due to increased energy use at home through the first lockdown. This is because customers who pay by direct debit tend to build up a credit on their account during the summer months, when they use less energy, in time for winter, when they use more. Over a 12-month cycle the idea is that their account balances out.

With temperatures falling, however, and accounts in debt already, it is likely that many customers will have to adjust their direct debits next year.

Scott Byrom, the chief executive of the comparison website theenergyshop.com, said: “The big worry is that consumers are sleepwalking into an energy debt crisis.

“Our usage is increasing under lockdown conditions, and we haven’t built up the normal credit reserves to cover our increased usage costs through autumn and winter.

Stephen

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4 replies

Yup, I’m in Debit even though my payments went up in March.

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Yup, I’m in Debit even though my payments went up in March.

April? 

I’ve worked out that the wfh adds up to about 10-15% at least over a year.

Fortunately the temperature hasn’t been too bad yet...

This is interesting @stephenrand, I’m sure working from home will impact energy bills. Even small changes such as having more laptops/ desktops plugged in all day, plus heating on top. And using the kettle more, of course… 

Glad we’ve introduced the ‘manage your balance’ feature so Members who want to can use this if they’re concerned :thumbsup:

Thinking about home energy efficiency is probably more important this year than ever! It’s great to have such an open Community with plenty of tips and helpful advice though :slight_smile:  

Yup, I’m in Debit even though my payments went up in March.

April? 

Nope, 31 March 2020.  Next review December 2020.

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