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Am I overpaying on energy?

You’re probably overpaying on energy if your unit rate or standing charge is above the Ofgem price cap for your region, or if your monthly direct debit collects more than your energy actually costs over the year. Here’s how to check both in a few minutes.

• Is your direct debit right for your usage? Paying by direct debit, your monthly amount is an estimate. If it’s set too high you build up credit the supplier holds (your money, not theirs); too low and you head for a nasty catch-up bill. The fix is to compare your direct debit to what you actually use over a year — not to a guess.
• Are you on a “standard variable” tariff? If you’ve never switched or your fix ended, you’re almost certainly on the standard variable tariff — the one that tracks the Ofgem price cap. It’s rarely the cheapest. A fixed deal can lock today’s price before the cap rises.
• Is the cheapest deal actually cheapest for YOU? This is the bit comparison sites get lazy about. The best tariff depends on how you use energy, not just how much. If you use a lot overnight (an EV, storage heaters), a time-of-use tariff can beat a flat one. If your usage is steady, a fixed deal usually wins. More on that here.
• Are your other home bills creeping up? Energy is rarely the only one. Broadband and insurance quietly rise at renewal — worth a yearly check alongside.

What overpaying looks like — a quick example

Say you pay 28p per kWh for electricity, and a cheaper deal is going for 25p. On a home using around 2,700 kWh a year, that 3p gap works out at about £80 a year — and that’s before you look at gas, the standing charge or the direct debit. Small-sounding gaps stack up.

What to do next

• Find three numbers on your latest bill. Your unit rate (p per kWh), your standing charge (p per day), and your monthly direct debit.
• Check the rates against the cap. If your unit rate or standing charge sits above the current price cap for your region, you’re paying over the odds.
• Check the payment against your usage. Compare your direct debit × 12 to what your energy actually costs over a year. A big, still-climbing credit balance means it’s set too high.
• Act on what you find. Ask about a cheaper deal, or ask your supplier to right-size the direct debit and refund any surplus above a sensible winter buffer.

The quickest way through all of that is to let the free bill check do it for you: it reads your rates, compares them to the price cap, and weighs your direct debit against your real usage — in about 30 seconds, with nothing saved. Want the fuller picture across your home? Check your whole home →