Sitting on our money, confusing bills, hefty Standing Charges and other ways energy companies cash in

With our energy bills set to increase yet again next month, we look at five more subtle tricks suppliers use to make more money.

Most households already feel their energy bills are eye-wateringly high.

And sadly, it seems as though things are about to get worse, with the typical bill set to increase by 2% in October thanks to the Energy Price Cap rise.

But behind the headlines about Government policies and wholesale prices, your supplier may be quietly adding to the pain in ways you might not even notice.

In this article, we reveal five of the most common tricks to watch for – and how to keep costs down.

1. Pushing smart meters we don’t need

Energy companies like to give us the impression that smart meters can help slash the cost of our monthly bills.

In reality, however, these devices don’t save us money by themselves – they simply show what we’re spending.

Likewise, they are often dogged with issues such as defective displays and faulty read-outs, frequently referred to as ‘going dumb’.

And of course, the entire cost of this rollout is passed on to households via higher bills.

Another issue lies in the way these devices are marketed.

Alarmingly, there are reports of suppliers calling, texting and writing to households implying they are obliged to accept a new meter, which just isn’t true.

Why the hard sell? From a cynical perspective, smart meters save suppliers money.

Once you have one of these devices in your home, companies don’t need to pay for manual readings and disputes over estimated bills become less common.

The solution

Remember, you have the final say over whether to have a smart meter installed in your property.

If you don’t wish to do so, you have the right to refuse.

The only exception could be if you have an older meter that has reached the end of its natural life. In this case, providers may no longer install old-style devices.

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2. Sitting on your money for months

If you pay your gas and electricity bill by Direct Debit, you may have built up a substantial credit on your account.

According to the major energy suppliers, the idea behind this payment method is to regulate bills across the year.

Essentially, you’ll pay more during the warmer Summer months to cushion the blow of crippling Winter bills.

Although this makes sense in theory, many households end up massively overpaying.

Research from regulator Ofgem has found that the total customer credit balance for households who pay for gas and electricity by fixed Direct Debit averaged at £3.15 billion at the start of 2025.

And, although suppliers are meant to refund you if your account is heavily in credit, firms often drag their heels when it comes to returning cash.

Some take weeks or even months to pay out.

The solution

If you find yourself with a significant credit, the first step is to contact your supplier and request a refund for the amount you’d like.

Be aware, you’ll normally need to provide an up-to-date meter reading to justify your argument.

If you’ve closed your account, regulator Ofgem dictates that you should receive your credit within 10 days from your final bill.

3. Irregular Standing Charges

When it comes to energy deals, it’s fair to say that not all accounts are created equal – and this is especially true in the case of Standing Charges.

This is a fixed daily amount you pay for energy, no matter how much you use.

It even applies to properties that are empty for part of the year, such as holiday homes.

Worryingly, this fee can fluctuate depending on your location and your choice of supplier.

The solution

Always look beyond unit prices when choosing a new tariff.

Although some suppliers offer zero rates on Standing Charges, these deals are few and far between.

Also, be aware that such tariffs tend to come with higher rates per unit of energy, so wouldn't be suitable if your energy usage is high.

4. Confusing bills

Unclear wording is another of our biggest bugbears when it comes to energy bills.

Suppliers often use jargon, abbreviations and odd layouts that make it difficult to see exactly what you’re paying.

Credit balances are hidden away, charges are split across confusing categories and sudden increases can be disguised by ‘adjustments’.

Let’s face it, when bills are opaque, customers are less likely to spot errors or challenge unfair charges – which works out nicely for the supplier.

The solution

Vigilance is key. Check your bills closely and query anything that looks off.

And make yourself a nuisance. If you’re not happy, familiarise yourself with your supplier’s internal complaints procedure.

Once you’ve exhausted these options, you should make it known that you’ll be willing to complain to the regulator if needed.

5. Making it harder to switch

Moving suppliers is one of the best ways to save money, but energy companies know this too – and many don’t make it easy.

Exit fees, slow paperwork, unhelpful customer service or vague warnings about “losing your credit balance” all act as barriers.

The solution

Don’t let the hassle put you off.

Switching has saved households has historically saved households between £200 and £300 per year, and it’s likely to again if competition re-emerges in markets.

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Have your say

Do any of the examples on our list particularly get your goat?

If so, what have you done about it?

We’d love to hear your thoughts in the comments below.