Estimated energy bills may cause debt

People may find themselves in arrears due to direct debits not covering their energy bills, it has been revealed.

Around a third of bills are based on estimated energy use rather than accurate meter readings. These bills are potentially all incorrect, electricity and gas watchdog Energywatch has said.

Consumers who pay by direct debit without checking the imbalance are therefore risking debt, according to the Citizens Advice Bureau (CAB).

`Some energy customers owe up to £1,000, said the CAB, which has reported an increase in people asking for advice after getting into debt this way.

Tony Herbert of the CAB said: "They might have a direct debit set up; they might think they`re paying their bills, but because they`re paying on estimated readings it may not reflect how much they`re actually using."

Mr Herbert described the eventual energy bills as "huge".

Last month the BBC reported a predicted 40 per cent increase on household fuel costs by the end of the year, an average rise of around £400 per home.