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Gregory Pennington Warns Bill Payers to Keep an Eye on Energy Prices



Following the news that many energy customers are unexpectedly being faced with large arrears on their bills, debt management company GregoryPennington.com has advised billpayers to keep a close eye on their bills in the coming months.



Customers can choose to pay a fixed amount for their energy by monthly direct debit, which is usually based on average usage in previous months, or for new homeowners, the average amounts used in that house previously.



But due to the rapid rises in gas and electricity prices in recent months, many energy customers have been shocked to find that their payments are falling short of the actual cost - with some arrears amounting to hundreds, or even thousands of pounds.



A spokesperson for GregoryPennington.com said: "A lot of customers who previously had no significant problems with their bills are discovering that their direct debit payments have fallen short of the actual costs, and they have built up large arrears without realising it.



"The energy providers are largely leaving the responsibility with the customer to contact them to keep their bills up to date," she continues, "and in their defence, this is clearly stated on most bills.



"But too many customers don't realise quite how different their actual costs could be compared with the estimated bills they have been sent."



"A lot of customers feel their energy providers should have contacted them to let them know their payments were not high enough, and adjust them accordingly," she says. "But it seems this cannot always be relied on in practice, so unfortunately the onus is on the customer."



Energy prices have been rising at unprecedented rates - in July, the BBC reported a 74% rise in wholesale gas prices since the start of the year, and gas and electricity bills could rise by 40% this winter, they say. These rises are inevitably passed on to customers in the form of higher bills.



"We would advise all billpayers to request regular monthly bills, and check them thoroughly," said the GregoryPennington.com spokesperson. "In particular, always compare estimated meter readings and look out for anything indicating you have built up arrears on your account. If you pay by direct debit, your bill will usually tell you that you have built up arrears which will be carried over to your next bill.



"When arrears are 'carried over', this in truth simply means that next time your direct debit payments are re-calculated, the arrears will be added on top, so that you can 'catch up' with payments.



"Energy companies themselves only tend to do this once a year, and in that time your arrears could grow rapidly, making your next direct debit payments much higher than expected," she continues. "The only way to avoid this is to regularly provide meter readings to your energy provider and discuss with them whether your direct debit needs adjusting."



She added: "Anything you owe in arrears is a form of debt, and in times when there are already many pressures on our finances, it pays to keep on top of your bills and avoid any nasty surprises.



"For those already in debt it is especially important not to let these arrears grow. Effective debt management (http://www.gregorypennington.com) involves keeping on top of your ongoing commitments without falling behind on your other debt repayments."






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| Arrears | Direct Debit | direct debit payments |




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