business-utilities News
Estimated energy bills now may catch you out later.
As we are now entering into the final quarter of 2011, the amount of electricity and gas we use in order to try and stay warm and dry will increase. Many of us will of course want to look for the cheapest options and we’ll wish to either look at switching utility suppliers or we may wish to stay with our current energy supplier on the same or a better tariff – either way there are things which we need to consider.
Most utility companies will set their payment schedule on either a monthly or quarterly payment plan along with estimated readings being used a majority of the time in the production of our Gas and Electricity bill statements. This applies to both household utilities as well as business utilities.
With news that the bills are going to increase significantly with the likes of British Gas, EDF, npower, Scottish Power, Scottish & Southern and E.ON having all raised their prices this autumn, making each household pay £300 more for fuel this year. There is a real possibility that UK households and UK businesses alike could build up a huge deficit if we don’t give our exact meter readings to your Gas and Electric supplier on a regular basis.
Estimated energy bills can cause problems if not now most certainly in the future and as such can and will affect people’s ability to squash their residential and business energy costs. An example being if a deficit of any kind is present large or small it will need to cleared before being able to switch to a different utility supplier.
For those households and businesses that opt to pay a fixed amount per month via direct debit will find that their current energy provider along with all other utility companies will base the monthly payments required on historical data.
Often this means that paying a fix monthly amount on estimated bills over a 12 month period could result in such estimate readings being for less energy than what it actually used – hence either at the end of the year or when looking to change energy supplier there’s a stonking large bill to settle first.
Without rambling on here or stating the obvious – but in a genuine effort to force home what we’re saying: – if the reading on your estimated bill is saying you need to pay £50.00 a month but you are actually using £90.00 a month, of course a deficit will build up over a period of time. Unless you’re emailing, phoning, or texting your energy supplier regularly (monthly is always best) with your gas and / or electricity meter readings – the bills produced will be estimated.
DO NOT RELEY ON YOUR ENERGY COMPANY TO COME AND READ YOU METERS AS THIS WILL ONLY HAPPEN ONCE OR TWICE A YEAR.
The first warning signs that you are starting to struggle with payments may be that you are relying on estimated utility bills and the thought of giving a current reading causes you concern and sleepless nights.
In our opinion and to be simply smart with your energy costs you need to talk to your Gas and Electricity supplier if you feel that you may not be able to pay the current bills – Do not stick your head in the sand and hope it will just go away, or sort itself out on its own accord.
Take note that if you find yourself in an awkward position, your energy provider is able to offer alternatives such as a budget plan or payment plan. We would suggest writing or emailing your utility company and explain your situation, as this is the best way to prove you’re trying to address the situation. The utility company should offer a compromise and help you through for a period of time so you can start maintaining your payments.
In summary, as with all financial payment obligations you may have – if you discover you are having problems making such payments you MUST get in touch with your creditor as soon as possible. If you feel that the problem is more than just your utility bills it may be time to have a look at what your budget is with regards to income and the money going out of the household by using an Personal Budget Plan.