In-credit energy customers warned not to be too hasty to cash in

The furore surrounding in-credit energy customers whose direct debit payments have been increased by suppliers has been blown out of proportion, says Confused.com.

Consumers are advised to take the initiative and iron out these issues with their energy suppliers directly:

Consumers are in-credit after the summer which is not surprising, as less energy is normally used over the summer months; this generally evens out in the colder winter months when households use more energy.

As energy prices have increased by 34% to 40% over the past year, suppliers have to raise direct debits to cover these costs. If they do not, customers could well find themselves in arrears in the near future, with large one-off payments to find. If they are in debt to their current supplier, customers cannot switch to a new provider; thus, they could become trapped in uncompetitive tariffs.

If customers already pay by direct debit, it is important to continue to do so, as it is the most efficient way to pay bills and is also the cheapest. Direct debit customers get the best tariffs; no company can take additional money from customers' monthly accounts without notifying them directly in advance, in accordance to the conditions of direct debit agreements.

Before asking for a refund, it is imperative that consumers take meter readings to check that their energy bill is based on an accurate figure, and not an estimate. Customers are only entitled to refunds if the bill is accurate, ie based on a meter reading.

Gareth Kloet, head of energy at Confused.com, says: "Never before has it been so necessary for consumers to distinguish between genuine fears and mere speculation, when it comes to their monthly outgoings. The credit crunch has been a breeding ground for speculation and sensationalism, but it is important to see the wood from the trees, especially when it comes to energy. It's true that some suppliers have been raising direct debit levels, despite the fact that some consumers are in credit, but there are valid reasons for them doing this.

"Direct debit payments - and indeed switching to an online tariff - could save consumers up to £322 per year, so it is worth continuing or switching to use this payment method. If consumers need additional clarification when it comes to their bills, it is advised that they go straight to their supplier - only then can they make an informed decision about whether they are actually being overcharged

"Empowering the consumer is a vital part of making decisions, and has always been part and parcel of what comparison sites stand for. If consumers are really unable to get their problems resolved, and are still unhappy with their energy provider, it may be worth switching suppliers altogether. Customers who change energy suppliers through Confused.com can save an average of £284."