75% of Customers Overpay on Energy Bills: Find Out When and Why!

When it comes to settling an electricity or gas bill from official providers, consumers rarely question the legitimacy. They assume everything is above board and that they are paying exactly what they should based on their usage. However, some providers deliberately underestimate household needs to offer seemingly lower prices and lure in customers. This tactic is highlighted by the consumer magazine 60 Millions de consommateurs in their investigation into “the hidden trap of monthly payments”.

Indeed, this billing method allows consumers to spread their electricity or gas bills throughout the year. “Three-quarters of customers from the three major suppliers (EDF, Engie, and TotalEnergies) have opted for this,” notes the investigation. Instead of paying for their actual monthly consumption, customers pay the same amount every month for 11 months. This amount is an estimate based on their previous year’s consumption. In the 12th month, the provider sends a settlement bill. If the customers have used less, they get a refund; if they’ve used more, they must pay the extra amount.

The trap then snaps shut. As explained by experts from 60 Millions de consommateurs: “Monthly payments can mistakenly give consumers the impression that they have full control over their energy expenses. And this can lead to nasty surprises with hefty settlement bills, sometimes amounting to thousands of euros.” Thus, the decision at the time of signing up for an electricity or gas contract is crucial for consumers.

Consumers need to be cautious about the billing method they select and should especially scrutinize the monthly payment amounts proposed by the provider if they choose this type of contract. This deceptive practice is real: in a 2023 report, the national energy mediator highlighted several providers, including Engie, for such practices. It’s better to be vigilant before signing any contract!