Estimated bills and building up debt

DemiDee

Our energy supplier is going out of business and it's likely that our estimated bills have been lower than they should be for quite a while now, since the last actual reading was done in the summer months and before the energy crisis really hit hard.

Given that there will be a huge hike in prices in April, is it best to pay the built-up deficit now, before we are transferred and before the hike?

QrizB

In your position I'd submit some actual readings now (and make a note to do it more regularly in future).

At some stage your suppliers will catch up and will have to estimate how much you used at the various rates you've been paying. Better to draw a line in the sand now.

lohr500

I guess it comes down to your own financial position.

If you can afford to let the debt build up and have readily available funds sat somewhere making reasonable interest ( a challenge over the past few years!!) , then let it build. The money is better off earning interest for you rather than paying off the debt.

If you are worried that you may not be able to pay off the big bill that will eventually arrive, then better to reduce the debt in stages if you can. 

theoretica

Yes - and they should recalculate all your bills from the last reading so you get to pay for some of the underestimate at those lower rates.

jimpwarsop

Give them an accurate reading NOW.

If they under estimate due to lack of an accurate reading you will pay for the unbilled energy at a higher price.