Paying for your current consumption

Whatever your debt repayment rate, you must also pay for your estimated current consumption over the year. It is important that this estimate is as accurate as possible, otherwise you may end up paying more than you can afford.

You can check the estimate provided by the supplier, either by using your own bills or by asking for details of the actual readings of your meter over a past period. Suppliers often have records for up to eight quarters. Try to make sure that the readings cover at least a year so that you make allowances for seasonal variations and any changes in your lifestyle or appliance usage. Calculate the number of units of fuel you have used over the period covered by meter readings, and then divide this figure by the number of weeks in that period to work out the number of units you use on average each week. Multiply that figure by the cost of the units of fuel. Then add on the amount of the standing charge for each week.

If you have not been in your property for long, the supplier’s energy efficiency advisers should be able to advise you on the likely size of your bills if you provide them with details of the size of your home, family and the appliances you use.

Where you have a payment plan, ensure that your meter is read every quarter, either by you or the supplier, so that you can check the accuracy of your estimated current consumption and ensure that the amount you are paying is neither too low nor too high.