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Consumers overpaying energy bills by £1.3bn

Brits owed £100s by energy companies

Energy companies are holding on to an extra £1.3bn of their customers' money due to overpaid bills, according to Gocompare.com.

New research by the comparison website revealed that two out five Brits are overpaying for their gas and electricity as the energy companies cash in to the tune of billions of pounds.

Energy suppliers owe, on average, £124.34 to customers who are overpaying for their gas and electricity. One in ten of these are due a refund of as much as £500.

Despite energy customers being owed hundreds of pounds, 21% of them have never asked for a refund. 50% let the balance rectify itself, and almost one in ten are either too embarrassed to ask for a refund, or can't be bothered.

You should never let your utility company estimate your energy usage - it's a sure-fire way to end up shelling out more than you really need to.

The research also showed that millions of Brits are potentially losing out as 37% of energy customers admit to hardly ever checking their meter readings when they get a bill.

Mark Greening, head of utilities at Gocompare.com, said: "It's hardly surprising that so many people are overpaying for their gas and electricity. You should never let your utility company estimate your energy usage - it's a sure-fire way to end up shelling out more than you really need to.

"It's not unusual to build up a credit during the summer, and following the bitterly cold winter we've experienced, any overpayments made could've helped soften the blow of the big bills that most of us have recently received. However, if you find yourself in credit after your winter bills have been paid then make sure you ask for your money back - it's better to have the extra cash in your bank account than your energy provider's."

The research also showed that 36% think their energy bills are too confusing. A quarter of those surveyed thought energy bills were full of jargon, while 29% said they were badly laid out. A massive two-thirds of people said that energy companies should make their bills easier to understand.

"Energy bills are littered with confusing terms that would put most of us off reading them in any great detail. Although the way that the cost of energy is calculated is complicated, there's no reason why energy companies can't explain their charges in plain English," Mark continued.

"If bills were easier to understand then people would feel better able to manage their gas and electricity accounts more effectively, and things like overpaying for energy would be less of an issue."

Useful links:

How to claim a refund on overpaid energy bills

Claims Financial

 

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