I’m an energy expert – and here’s everything you need to know about bills right now
TWENTY SIX energy firms have gone bust this year and bills are set to soar - but what can you do to protect yourself?
We spoke to energy expert and ex-British Gas worker Lynsey Jones.
The 46-year-old worked for the energy giant for 20 years, but set up her own consultancy business Quote4Energy Ltd in 2017.
With many households worrying about their energy bills as price rises and temperatures drop, she shared her top tips for customers right now.
Don't panic
There’s no need to panic if your energy firm has gone bust, says Lynsey.
“A number of energy suppliers have ceased trading throughout this year, and as sad as it has been to see those suppliers exit the market, customers have no need to panic,” she said.
“When an energy supplier says it is ceasing to trade, customers are guaranteed continuity of supply so have no need to worry.”
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Usually the advice to customers is to switch their supplier every six months to find a cheaper tariff - but right now the best thing you can do is stick with your provider.
That’s because if your firm has gone bust then you will be rolled onto a standard tariff, which cannot go higher than the energy price cap.
If you’re on a fixed tariff then you’re paying a cheaper bill anyway and should stick with it.
When it ends you’ll be rolled onto the standard tariff. Set a diary reminder to check whether you can find a better deal a month before your current one ends.
Pay by direct debit
If you don’t pay by direct debit then you’re missing out on a discount.
“When looking for offers from new suppliers, if you can pay by direct debit you will often get a discount,” said Lynsey.
“Beware of signing up to an online only tariff without understanding that your bills will all be online via your account and you won’t have access to a call centre to speak to anyone, everything is done via a chat function.”
Some consumers are wary that paying by direct debit means they end up in credit - but this can actually help spread your costs.
It means you pay a bit more in the summer but don't get hit with a huge bill when you use more energy in the winter months.
If your supplier collapses, any credit on your account is protected too.
Ask for help
As for helping people with their energy bills, Lynsey says there several options available.
She said: “The government has a number of schemes that can help.
The Winter Fuel Allowance pays up to £300 fuel payment for people born on or before 5th October 1954 who are struggling with their bills.
Meanwhile, the cold weather payment gets you £25 for every seven consecutive days of very cold weather between November and March
The Warm Home Discount can get you £140 off your bill for some people getting Pension Credit or some people in low income households and Household Support – a funding package available from your local Council for vulnerable households this winter.”
It’s also worth checking whether your supplier can help if you’re struggling.
Lynsey said: “Some of the larger suppliers offer grants to help pay off an energy debt including British Gas Energy Trust, Scottish Power Hardship Fund, Ovo Energy Fund, E.ON Energy Fund and Bulb Energy Fund.
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“And you may be able to apply for a grant through a charity, Let’s Talk has information on charities that offer grants and how to apply.”
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