What our founder Laura said on the BBC this week
This week Laura was on BBC Morning Live with hosts Rav Wilding and Louise Minchin, along with BBC experts Dr Xand, Lisa Webb from Which? and vet Dr James Greenwood. Laura answered a viewer’s question on whether she should pay off the debt on her energy account.
So should you pay off outstanding balances on the account?
Generally no. If you account is in debt, it doesn’t mean you necessarily “owe” the energy company that money immediately. If you pay by direct debit, you’re contracted to pay a regular amount each month to your provider.
The debt on the account is connected to the amount of energy you’re using and the tariff that you pay for your energy, which can fluctuate up and down across the year.
When is a good time to pay off debt, or even claim back credit?
Because most of us pay by fixed monthly Direct Debit, energy companies spread your annual costs evenly across 12 months. That means you build up credit in summer when you’re using less energy, and draw it down in autumn and winter when the heating goes back on.
Early May is typically the lowest point of the year for your account balance — so if you’re in debt by a few hundred pounds right now, you’re likely right on track. As we head into summer, that balance should start to recover.
If however you have a high amount of credit at the moment, it may be worth speaking to your supplier about possibly claiming a refund – ensuring you still have a comfortable buffer.
You can watch the full segment on BBC iPlayer