MILLIONS of energy customers will still be charged more than other billpayers, despite prices falling in days.
Average gas and electricity bills are set to drop by £122 a year from when Ofgem introduced its new price cap on Monday, July 1.
However, the cap is not uniform, and households pay different unit rates and standing charges depending on how they pay their bills and where they live.
It means that millions of households will still end up paying £100 more per year than those who pay by direct debit or through a prepayment meter.
Approximately 18million out of the 28 million households on the standard variable tariff (SVT) pay by direct debit.
Four million more pay for their energy through a prepayment meter, which now has the lowest price cap.
However, figures obtained by Ofgem for The Sun show that five million households that pay their energy bill via credit, debit card, or cheque will continue to pay up to £100 for their gas and electricity.
The regulator’s latest figures also suggest that those who pay for their energy by standing order face paying more.
Ben Gallizzi, energy expert at Uswitch.com, said: “The way you choose to pay your energy bill can often impact the rates you’re offered.
“Customers paying by monthly direct debit will usually be offered lower rates when compared with someone who pays on receipt of their bill.
“This is down to how easy it is for a supplier to manage your account.
“A monthly direct debit allows bills to be paid automatically on set dates and is therefore simpler for a provider to manage.”
For most, the cheapest way to pay your energy bills is via direct debit.
From July 1, a typical household that pays their energy bill by direct debit will pay the following rates:
It means that a household with typical usage can expect to pay £1,568 a year – down from £1,690 a year.
This is based on the average household using 11,500kWh of gas and 2,700kWh of electricity every year.
However, those who pay on receipt of their bills can expect to pay £1,668.40 across the same period.
This is because these households will have to pay the following unit rates and standing charges:
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.
Households who pay for their energy through a prepayment meter will be charged the cheapest rates from July 1.
However, it’s important to note that these households will always be at risk of disconnection if they can’t afford to top-up their meters.
These customers will pay the following rates from July 1:
It means that a household with typical usage can expect to pay £1,521 a year – down from £1,644 a year.
Be aware that the exact unit rates and standing charges that you pay will also vary slightly based on your supplier and where you live.
To find out your specific rates, check your first gas and electricity bill received after July 1.
If you’re currently paying on receipt of your bill and wish to switch to paying by direct debit, reach out to your energy supplier.
It’s worth login into your online account, as you can usually set up a direct debit there.
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £1,500.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
