FireNew customers to OVO Energy will see a rise in their direct debits throughout the winter to cover these more expensive months.

As customers are joining the energy company at the most expensive time of the year, they won't have had a chance to build up credit to pay for these increased costs over winter.

Money-saving guide

Cut your bills


Once the weather gets warmer and energy usage goes down, OVO says the bills will also fall, but this won't happen until next year.

Winter uplift

The OVO deal is a fixed-rate tariff so the overall price per unit of energy won't change, but as you'll use more energy over winter you'll initially be paying out more.

Money-saving guide

Cut your bills


The average customer uses 25% more gas and electricity in winter and so these higher direct debits act as a buffer to cover payments to make sure a huge bill doesn't build up by the spring.

If you've paid too much over the winter, your direct debits will go down to meet this overpayment. And they'll go down slightly anyway as you won't be using as much energy over the summer months.

There's also the added bonus that you'll get paid 3% on any in-credit balance you hold which means you're not just giving this extra credit to the energy company as a free loan because you'll get a competitive return on it.

What's the problem?

Although I know prices go up over the winter and I can see the logic behind OVO pushing bills up to meet this need, it seems rather pre-emptive. And you could end up paying far more than you need to during the winter months.

If OVO estimates the amount you're going to use over winter, at an already higher rate to meet rising costs, this could be far more than the amount you actually use and the price won't be re-evaluated until the spring.

What would be better is if the company uses a set rate throughout the entire year, so you know exactly how much you're paying out. As it's a fixed deal anyway this would make more sense.

How can I make sure I'm not paying too much?

Paying by direct debit is generally cheaper and energy providers will often give you discounts if you pay this way.

However, many energy providers are guilty of over-charging customers by upping their direct debit payments as an easy way to borrow free money.

This is why it's important you make sure your monthly payments are set at the right level. The best way to keep a check on how much you're paying is to take things into your own hands and make sure you are conducting regular meter checks and giving these to your provider.

Am I on the best tariff?

With all the recent talk about predicted hikes in energy bills after the shock announcement from SSE to raise its prices, many people have switched to fixed-rate tariffs. Our comparison tables give a complete look at the market, but here are the cheapest deals currently available.

Cheapest energy tariffs on the market


Supplier

Tariff

Average cost

Average saving*

Notes

First Utility

iSave v12, variable

£1,054

£256

Fixed for three months, paper bill available for £1 per month. Cancellation penalty of £30 for fuel in the first three months, no penalty thereafter.

NPower

Energy online, fixed until Jan 2014

£1,071

£239

Rates guaranteed to be at least 3% cheaper than npower standard until 31st Jan 2014. There is a £30 per fuel cancellation penalty if you leave this tariff before 31st Jan 2013

First Utility

iSave fixed v4

£1,087

£223

Prices fixed until 31 March 2014. Paper bills available for £1 pm extra. There is a £30 per fuel cancellation penalty if you leave this tariff before 31 March 2014.

OVO Energy

New energy fixed

£1,088

£222

Prices fixed for 12 months, there is a cancellation penalty of £30 for gas and £30 for electricity.

British Gas

Online variable November 2013

£1,120

£190

6% discount against their Clear & Simple prices until 30th Nov 2013. £30 per fuel cancellation penalty if you leave this tariff before the contract end date of 30/11/2013.

Sainsbury's Energy

Online January 2014

£1,120

£190

6% discount against Clear & Simple prices until 31st January 2014.

There is a £30 per fuel cancellation penalty if you leave this tariff before the contract end date of 31/01/2014.

E.ON

Energy discount

£1,124

£186

3% discount against standard prices for 12 months. There is a cancellation fee of £10 if you switch away before the end of the guarantee period.

EDF

Standard

£1,129

£181

Public price freeze till 2013. No cancellation penalties.

* based on average dual fuel tariff costing £1,310 (Source: OFGEM 1 Aug 2012)