I got a £1,000 refund using easy Martin Lewis tip – I’m using the cash on a cheeky holiday
A MARTIN Lewis fan has shared how she managed to get a refund of £1,000 thanks to a handy MoneySavingExpert tip.
The MoneySavingExpert (MSE) reader got the cash boost by asking her supplier to repay what she owed in energy credit.
If you pay for your energy by direct debit, most firms take the annual cost of your bill and divide it by 12 which means some parts of the year you are in credit and others debt.
But because the monthly payments are estimated, it can mean you end up being in too much credit at certain times of the year.
You can ask for it to be repaid though, meaning you could get a giant lump sum back.
Martin Lewis’ MSE previously said the best time to ask for credit back is around May, when your energy debt is likely to have stopped rising after the colder months.
Some people choose to leave a bit of credit in their account in the run up to the winter months, when you spend more, but some prefer to have the cash.
In the latest MSE newsletter, a reader called Diane shared how she used the tip to claw back £1,000.
She said: “Thanks to you I checked and discovered I was £1,000 in credit with EDF.
“I am now looking forward to a cheeky little holiday, which I wouldn’t normally have been able to afford. Happy days, thank you again.”
How to ask your supplier for credit back
You will first want to make sure your energy firm has the most up-to-date meter reading for you.
If you’ve got a smart meter, this will likely be sending regular readings to your firm so you won’t have to take a meter reading.
If your meter readings are up-to-date and if you have been in credit for more than one month, ask your energy firm to reimburse you.
Each energy supplier has its own process for issuing customers with credit refunds.
For example, British Gas says it will issue you a refund if you have been billed in the last 14 days and you are not switching to another firm.
If these apply, it refunds you your credit balance within 10 working days.
Octopus Energy says if you’ve got more credit on your account than you need, you can request any excess back.
But you need to have had an energy bill based on real meter readings in the 14 days before requesting a refund.
How to challenge an unfair direct debit
If you pay your energy bill by direct debit, then it is assumed that this monthly amount should be “fair and reasonable”.
If you don’t think it is, you can complain directly to your supplier in the first instance.
If you’re not happy with the outcome you can take it to the independent Energy Ombudsman to dispute, but there are a few steps before you get to that stage.
Your supplier must clearly explain why it’s chosen that amount for your direct debit.
If you’ve got credit on your account, you have every right to get it back – although some experts recommend keeping it there through the summer, so your bills don’t go up in the winter when you use more energy.
Your supplier must refund you or explain exactly why not otherwise the regulator, Ofgem, can fine suppliers if they don’t.
If you are disputing a bill, taking a meter reading is a must.
If it’s lower than your estimate, you can ask your provider to lower your monthly direct debit to a more suitable amount.
But beware so you don’t end up in debt later on with a bigger catch-up bill at the end of the year from underpayments racking up.
If you don’t have success in negotiating a lower payment then you can put in a complaint to the Energy Ombudsman.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out 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 determine how much you should expect to pay each month from April 1.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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