British gas direct debit gone up over 100% in one month

mtm81

just had a letter from b gas to say my d debit for my gas will increase from £38 per month up to £79!! I called to find out why and they said it was i am now on a new cycle for my account which changes annually.. That is despite the fact that just before the recent price hike i got my account onto the lowest tariff and so avoided any massive change, and also that during the ladt three years my d debit amount hasnt really altered and also my gas usage hasnt changed. I know prices have gone up but over 100%???

Cardew

Prices have not gone up anything like 100%; but there has indeed been large increases since you started paying £38 three years ago.

So paying £38 for 3 years you have almost certainly built up a debit balance, or are predicted to build up a debit balance by the next settlement date.

The increase is to ensure that this doesn't happen. It is quite possible that the DD will reduce after the next settlement date.

It is quite easy to calculate your annual expenditure if you know your annusl consumption in kWh.

mtm81

the 38 ive been paying was a flexible amount which changed from month to month but only by a few pounds. My debt balance is 74 pounds and this is about the same as its always been

Magentasue

Were you on a fixed tariff before you changed this year?

Cardew

mtm81 wrote: »

the 38 ive been paying was a flexible amount which changed from month to month

and also that during the ladt three years my d debit amount hasnt really altered

????????????

mtm81

Just to explain further.. My dd has always been around 38 pounds, however this has altered slightly every few months as is normal.. However that change has never been more than a few pounds, not 40!! And to answer the other replier, i have only changed my tariff four months ago onto click energy 5 from standard, which if anything should mean my dd is slightly lower!

SwanJon

mtm81 wrote: »

My debt balance is 74 pounds and this is about the same as its always been

You should have built up some credit during the summer months (when you were using less) to cover the winter months (when you will use more). If you've always had a debt balance I'm not suprised they want you to clear it this time.
If you are behind now, you will be even further behind come the spring.
Click 5 has recently had a price rise (I'm not sure how new click 5 compares to old standard)- change to Click 6 and have a look online to see what's best for your consumption.

anniecave

take how many units you use over the course of the year
work out on the new tariff how much your bills will be in total including vat and subtracting any dd or other discounts. Add on the debit balance. Divide that total by 12. That's how much you should be paying if you were to pay the debt off over a year.

If that monthly figure really should be only 30 odd per month, then pay the £76 for the next three months, then phone them up and ask them to reassess it, and then I'm sure they will then be happy to put it back down to a reasonable figure!

Paul_Varjak

I never let utility companies tell me how much I should pay by direct debit! I tell them! It is just a matter of working out the consumption over a year (so you need your old bills in front of you) and ensuting that you are not using estimated readings!

Just calculate the number of units used in a year and multiply by the unit cost. Then add on the standing charge for the year.

If you do not have a standing charge you will be charged more for the first xx units in a quarter which changes the arithmetic a little.

For completeness you may wish to make allowance for any direct debit discount/duel fuel discounts/paper-free billing discounts as well.

Once you have calculated your yearly consumption, work out a yearly bill (at current prices) and divide by 12 to get a montly direct debit amount.

Remember, some suppliers use two direct debits (one for gas, one for electric) even if you have duel fuel, but others have a single direct debit for gas and electric.

Paul_Varjak

SwanJon wrote: »

You should have built up some credit during the summer months (when you were using less) to cover the winter months (when you will use more). If you've always had a debt balance I'm not suprised they want you to clear it this time.
If you are behind now, you will be even further behind come the spring.
Click 5 has recently had a price rise (I'm not sure how new click 5 compares to old standard)- change to Click 6 and have a look online to see what's best for your consumption.

When BG introduced Click 5 I changed tariffs via a cashback website - even though I was already with BG and still got cashback!