Eight months on from the birth of our son, we have had nasty bill hike surprises as our household providers hike our direct debits.

The problem stems from the way in which our bills, primarily for energy and water, are collected. It has led, in quick succession, to a savage bill hike blitz that could have added £120 a month to our bills.

But instead of just taking it, I fought our providers and won back more than £500 a year.

The bill hike problem

Our energy and water bills are both metered. We have an energy smart meter so I don’t have to provide readings, and our water meter is checked every six months by our water company.

Now, our son was born at the end of October 2024, and it would be safe to say our usage of both services has increased.

We use the washing machine and tumble dryer more. We had the heating on more than usual to keep our house warmer for him in Winter. There are other things but these are probably the main additional drains on our usage.

Between water, gas and electric our usage has increased by roughly around 10% for each. This, when you track it in our bill statements, is pretty well immediately noticeable.

But here’s the problem: our providers don’t pay any attention to usage changes in the short term. They just hike their direct debit levels when you accrue an accidental deficit.

This meant that from October, our usage increased, but our direct debits did not.

Eight months on and the disparity in usage against what we were paying each month has enough of an affect that our water bill had a more than £200 discrepancy, while our energy stood closer to £500 in deficit.

I will admit at this point, I did not pay enough attention to the deficits on each as they rose, but the effect was incremental over months.

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Provider shenanigans

This came to a head all at once in the past few weeks. First water, then energy provider both got in touch with me to say our direct debits weren’t covering our usage.

For water, we were paying £50 a month. The provider now wanted £100 a month from us to cover the deficit.

Our energy provider was taking £130 a month from us, but it wanted £200 a month going forward.

This would have meant £120 a month in higher bills, something our budget would struggle to meet considering my partner Ellyn is still on maternity leave.

So I hit the phones to fight our corner.

In both cases I did some sums to figure out:

A. How much our monthly usage should cost, based on our consumption.

B. How much extra it would take, over 12 months, to pay our deficits back to £0.

For our water bill, this meant paying an extra £20 month. For energy, it would be £35. This versus attempted increases of £50 and £70 respectively (almost, suspiciously, as if both had just decided to more than double the difference).

The water company was more straightforward. We agreed to pay £70 a month, which over 12 months will bring us back to £0 deficit.

The energy company was more tricky, because you have to factor in the energy price cap. With the cap coming down in July, the level they had set our new bills at would have meant paying £2,400 a year, a mad amount.

In their own estimates we were going to use £1,672 (before the price cap decrease) in gas and electric or £139 a month, only a small amount more than our actual bill. With the price cap decrease – 8% reduction for electricity and 9% for gas – I reasoned that £1,522 a year would be likelier – or around £127 a month.

In order to beat our £500 deficit, I calculated that £165 a month would do it over 12 months with the above figures in mind.

This is what I reasoned to the (perfectly affable) call centre attendant on the phone. She accepted my calculations and the bill was duly adjusted.

And that was that, really.

As is the case with so many household service providers, from energy to insurance, the most important thing we can all do as customers is to stand our ground and push for a better deal.

This is increasingly difficult in markets such as energy, but there is still room to push back when companies try and take more of our money without actually improving their service levels.

Ultimately our bills have gone up, and I will now try and focus on how we reduce consumption, but we’re £55 a month worse off, not £120 thanks to a bit of calculation and effort. This means £540 a year in extra bill savings.

A win is a win these days, so I’ll take any day.

Photo by Mikhail Nilov

The post How I fought a bill hike blitz and won back over £500 appeared first on Mouthy Money.

In Britain we’re lucky to have high-quality running water on tap whenever we need it. LIke everything else in life it costs money, however. And in these times of rising prices and squeezed incomes, those costs can be a growing burden. So in this article I’ll be setting out some ways you may be able to reduce your water bills.

The first thing to say is that water pricing varies across the nations of the UK. In England and Wales, unless you have a water meter, the price you pay will depend on the rateable value of your home. 

In Scotland, again unless you have a meter, you will pay a standard water charge with your council tax. 

Domestic customers in Northern Ireland are fortunate in that they aren’t required to pay a water bill at all (though this may change in future, with a range of options for introducing household water charges in NI having recently been put out to public consultation).

Should You Get a Water Meter?

The average water bill for unmetered customers is currently around £450 a year.

If you’re on a low income, that can represent a significant chunk of your money. And unlike gas and electricity, you can’t just shop around for a better deal with a different supplier. You may, though, be able to make significant savings by having a water meter installed.

With a meter, you are of course charged according to how much water you use. A good rule of thumb here is that if your house has more bedrooms than occupants or the same number, it is definitely worth looking into getting a meter installed.

Of course, people vary considerably in how much water they use. So you can use  this free online calculator from the Consumer Council for Water to check whether you are likely to save money with a meter. It asks a series of questions about your home and your water usage and reveals the estimated cost you would pay if you had a meter. You can then compare this with what you are paying currently.

The good news is that in England and Wales (though not Scotland) water companies will normally install a water meter free of charge if requested. Even better, they will usually let you switch back to unmetered within 12 or even 24 months if you find you are paying more with a meter than you were before. You should check with your water company to find out their policy about this.

• If your water company can’t fit a meter for some reason, you can ask for an ‘assessed charge bill’. This is calculated based on the size of your home and how many people live there. If it comes to more than you’re currently paying you can stick with your present billing method, so there is nothing to lose by requesting this.

Saving Money With A Water Meter

Once you have a meter installed, there are lots of ways you can reduce your water usage and save yourself money (and benefit the environment as well!). Here are just a few suggestions…

• Only ever use the washing machine with a full load.

• Have showers rather than baths and keep them reasonably short.

• Do all the washing-up in one go.

• Use a dishwasher, or at least a washing-up bowl.

• Turn off the tap while brushing your teeth.

• Don’t use the toilet as a waste bin for paper tissues, etc.

• Fix dripping taps and any other leaks as soon as possible.

Finally, most water companies have a range of gadgets to help save water they will send you for free. Give them a call or check on their website to find out what’s available.

Other Ways to Cut Your Water Bills

If you are on a low income, all the water companies have schemes designed to help you. These vary a lot and you will need to check with your water company what they offer. 

Anglian Water, for example, have what they call LITE and Extra LITE tariffs for people with low disposable incomes who struggle to pay their water bills. You’ll need to have a meter fitted to qualify for this, but they say you could get a discount of up to 50% on your water and sewerage charges by switching to one of these tariffs.

I hope this advice will help you reduce your bills and keep your finances above water in the months ahead!

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo by RODNAE Productions from Pexels

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