Paying monthly - where's the incentive to save?

hey_jude_3

I have a niggling issue with paying monthly on gas and electricity.
Monthly payment amounts are generally based on past usage - so roughly what you used a year ago will influence what you pay now because the utility company assume you will use the same amount of fuel year on year. So we are paying £63 a month for gas (it used to be a lot less - around £30-£40 - but that's the price increases for you!).
So if we decided that saw for October we weren't going to use as much gas and try to save costs, this would not have much effect until next year after they've reassessed our usage and taken the appropriate meter readings. Even if, for some reason, we didn't use ANY gas in October we would still pay £63!
I notice that this site recommends that you pay monthly by direct debit but I really don't think that this has been thought out properly. It doesn't take any short terms measures to save fuel into account at all and, if you do, you will only see the benefit months or up to year later!
Anyone else thought of this?

Magentasue

I suppose so, but you don't have to pay by DD if you feel that your use is going to decrease. There's the option to put the money into an account, earn the interest and pay quarterly.

But I'd rather get a discount for paying monthly and keep tabs on how much I'm paying. Unfortunately, in recent years, my consumption has increased rather than dropped although I'm hopeful I can start reversing this.

Soubrette

As I'm sure you know, the DD pays a regular amount to your account, it is not the actual payment that you are making for your energy.

As your use decreases your account with your energy supplier will be in credit - you can ask for this credit to be reimbursed to you (not a good idea to do this just before winter though!!).

You can weigh up this loss of them holding some of your money with the amount of interest you would have gained in that time along with the discount you get for using DD.

If you find that you lose from the deal then you can cancel the direct debit and pay quarterly based on an actual reading (usually you will have to do this).

As my french teacher used to say - you everyone, not you personally

Sou

hey_jude_3

Thanks for your replys. I notice that I am in credit by £100 on my gas yet I can't see that they are re-adjusting my monthly payment so I've entered a meter reading (online) to see if that does anything.

Kez100

Last year EON put my DD up. I rang and said I didn't want it to increase but they said I had too in order to protect myself as rates were going up. So, I let them carry on....

They threw down the gauntlet to me to save as much energy as possible and I take great pleasure in seeing our credit balance rise and rise! After winter I'll try and get any outstanding back.

It's not about 'teaching EON a lesson' but giving me an incentive to save kw hours. I know they were right really as getting into debt with them wouldn't have been clever.

Eons energy tracker is useful tool as well. Another incentive.

Magentasue

In the past, I've switched and had a higher DD, but they've reduced it if I've asked. So long as the DD will cover the annual bill, they've been willing to reduce the payment.

Soubrette

hey_jude wrote: »

Thanks for your replys. I notice that I am in credit by £100 on my gas yet I can't see that they are re-adjusting my monthly payment so I've entered a meter reading (online) to see if that does anything.

I think you have to contact them to ask for a refund, they are more than happy to keep hold of your money and earn interest on it

However, remember that your usage will probably increase over winter and so it might not be a good time to ask for money back. Personally I would wait until Mar/Apr but continue to monitor the situation.

Sou

Soubrette

Oh forget to post about the monthly payments - they are unlikely to change them unless you are in credit in the summer but npower have certainly reduced mine (in the long distance past) without me having to contact them but I was in a lot of credit after the winter months had passed.

Sou

Pink_fluff

hey_jude wrote: »

Thanks for your replys. I notice that I am in credit by £100 on my gas yet I can't see that they are re-adjusting my monthly payment so I've entered a meter reading (online) to see if that does anything.

And that £100 credit you have built up will cover your winter bills, that's the whole idea of paying dd for gas and elec. You pay a monthly amount, and during the summer, generally you will use alot less gas and elec, therfore building up a credit balance which will be used to off set higher, winter bills. :beer:

brysiewysie

Soubrette wrote: »

I think you have to contact them to ask for a refund, they are more than happy to keep hold of your money and earn interest on it

However, remember that your usage will probably increase over winter and so it might not be a good time to ask for money back. Personally I would wait until Mar/Apr but continue to monitor the situation.

Sou

Eons newish DD system (since April) will refund credits above £10 at the spring review 2009 onwards (unless they tweak the system before then). They want customers to be neither in credit or debt (although £10 is a cut off figure either way) by spring although for some accounts this won't happen because of the current position the account is in. Having too much credit on accounts artificially discounts the required DD amount and when credit is exhausted customers DD's will seem to increase significantly, something Eon want to avoid because it gives many customers the thought that prices have increased when they may not have done.

oldwiring

hey_jude wrote: »

Thanks for your replys. I notice that I am in credit by £100 on my gas yet I can't see that they are re-adjusting my monthly payment so I've entered a meter reading (online) to see if that does anything.

Well by the end of summer I'd expect to be in credit and by winter's end in debit. However at the calculation year it should roughtly balance is usage and prices are constant. TBH I've never had problems because I keep my eye on it all.

Not to OP but why so many are incapable or not bothered until they're hit with a gigantic bill.