The finance expert issued advice for people who pay for their energy using a monthly direct debit
Martin Lewis said it is the ‘perfect time’ to check(Image: ITV)
Martin Lewis has revealed that people who pay their energy bills by direct debit could be owed hundreds. Known for offering straightforward consumer advice, his latest tip was shared on the Martin Lewis podcast and could help those eligible get hundreds of pounds back in credit.
The MoneySavingExpert founder shared a clip from the podcast on his official X page. His post read: “Do you pay energy by monthly Direct Debit? If so this is the perfect time to check if you’re due £100s credit back.”
In the video, Martin explained: “If you pay your energy bills by monthly direct debit, this is the perfect time to check whether you are in too much credit. Energy films are sitting on over £3 billion of our cash and you can get it back. So why right now?
“Well, at the beginning of May, we are at the bottom of the curve in the energy direct debit cycle. That means this is the point of the year when you should have the minimum amount of credit. So go and have a look what credit you’re in.
“Make sure you’ve done an up-to-date meter reading, or you’ve got a smart meter doing that for you, and that’s being factored in. Then, assuming your direct debit is about right, what I would suggest, if you have any more than a month and a half’s worth of direct debits, that’s too much.”
He continued: “So suppose your direct debit is £200 a month. If you have £600, a month and a half’s worth is £300. So I’d be getting in touch with them saying, why am I so much in credit?
“Please can you give me back the £300 of my money that you’re sitting on?” More advice is available on MoneySavingExpert, which was founded by Martin Lewis.
The consumer website explains: “Paying your energy bill by monthly Direct Debit can save more than £100 a year compared with paying when you receive a bill. Yet with Direct Debit, suppliers base them on an estimate of your usage over a year, and then divide this by 12. If that’s wrong, you can end up overpaying – and last year around £3bn was held in credit by suppliers.”
Martin Lewis’ guide adds that while May is the perfect time to make the check, customers could also have a look in November. The expert explained that you should have maximum credit in early November.
The guidance explained that people would typically expect to have a maximum of two-and-a-half months of energy credit in this month. However, the total could vary depending on prices.
