Several energy suppliers in Belgium have started allowing people to lower the amount on their advanced energy bill. Those who have not received such an offer are encouraged by consumer rights organisation Test-Achats to enquire and explore their options.
Many consumers have recently been notified by their energy suppliers that their advance bill can be lowered, due to the downward trend in prices in recent months, De Standaard reported. This is also a result of a commitment made by the industry to review the price of advance bills three times a year, explains the Federation of Energy Suppliers FEBEG.
"Prices have been falling since the beginning of this year and have also been hovering around the same price for a while. Those who have a variable contract and have not yet adjusted their advance bill in the past six months should do so," spokesperson for Test-Achats, Laura Clays, told The Brussels Times.
Getting advance payment right
Lowering advance payments may be especially interesting for customers who signed onto fixed contracts during the most expensive period from August to November last year.
Clays confirmed that some suppliers have already contacted their customers about an adjustment – this is always a proposal, and customers are not forced to accept it – but warned that others have not informed their customers.
"Changing advances yourself can be done in your supplier's customer area or app," Clays explained. However, she stressed the importance of getting the amount on the advance bill right so that consumers aren't hit with an unexpected end-of-year bill and don't get too much back either. This is particularly difficult for those on a variable contract.
"Some suppliers provide an estimate of your final bill when you give your meter readings. You can then immediately see whether you have to pay extra and are better off increasing your advance, or whether you will receive a refund and can lower your advance."
Paying for predictability
Clays explained that, for those with a digital meter, another option to save money is through monthly instalments. "At the end of the month, Fluvius, the grid operator, sends your meter reading to your supplier, who then sends you an invoice so that you pay your full consumption every month."
"The advantage is that you will then never be faced with a final bill that is very high, or where you get a lot of money back. The disadvantage is that you then have big fluctuations. You use more in winter, so you pay more, while in the summer, you'll likely pay less. With advance payments, this is evened out."
People whose advance payments are too high will get credit from their energy supplier when receiving the final bill, while households that set their advance payments too low could face a high bill at the end of this period.
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Clays also welcomed the fact that there are more fixed contracts on the market again, as was requested by the organisation, even though these are currently more expensive than variable contracts.
"That is the risk premium you pay for when prices would rise and the supplier pays for it, which has always been the case. The advantage is that it gives consumers the certainty that their price is fixed. We know that many people are willing to pay a bit more for that security: before the energy crisis, around 65% of Belgians had a fixed contract," she concluded.
