Energy Companies Allegedly Misuseing Direct Debit Scheme

t4mof

Yep, same thing happened to me. Currently paying £81 for gas and elec. Received a letter on Saturday stating DD was rising to £106. Rang and questioned this as I always have accurate bills and looking back at the last 2 years it averages as £75 a month (and I'm currently £40 in credit after the Sept - Dec bill).

The response was that they have taken last year's winter consumption and then upped the DD by 38% to cover this year's rises in prices!! So they are basing a whole year's consumption on the most expensive time of the year and adding to it.

I asked them to put it back down to £81 which to be fair they did but then told me that when I get my winter bill covering Dec - March any debit balance will have to be cleared within 14 days!! Do we not pay DD to spread the cost?? Obviously the rules have changed and we should pay enough to cover the winter bill every month rather than spreading an annual consumption over 12 months

MarkyMarkD

I don't understand your logic at all, t4mof - so it's probably wrong.

If your bills over the last 2 years average £75 a month, then because of price increases it is probably (say) £65 in the first year and £85 in the second year. And then prices have gone up by (say) 38% this year. so the £85 needs to increase by (say) 38% to around £120. But you are £40 in credit, so that knocks off around £4 a month. Leaves around £115.

So £105 seems quite reasonable.

t4mof

To be honest my objection was that it was explained to me that they used last year's winter consumption (obviously the highest consumption of the year) to work out my yearly consumption and then the demand for payment of any arrears after the winter quarter. My understanding of spreading the cost by direct debit is that you.... well, spread the cost. I would expect to be in debit in March but then my summer consumption would ensure that by the end of summer I would have built up a credit to put forward towards the next winter. It really should be that straightforward!

Cardew

t4mof wrote: »

To be honest my objection was that it was explained to me that they used last year's winter consumption (obviously the highest consumption of the year) to work out my yearly consumption and then the demand for payment of any arrears after the winter quarter. My understanding of spreading the cost by direct debit is that you.... well, spread the cost. I would expect to be in debit in March but then my summer consumption would ensure that by the end of summer I would have built up a credit to put forward towards the next winter. It really should be that straightforward!

Isn't that what MMD is suggesting has happened?

On his figures(which you haven't disputed) if you paid £85 on average last year and are now £40 in credit, £106 for the forthcoming year will probably not cover your outgoings?
i.e. 12 x £85 = £1,020. Price increase 38% = annual bill of £1,407 less £40 = £1,367 = 12 payments of £114.

Getting your DD reduced to £81 is great and you seem to accept that you will have to clear any debit.

I would get all my DDs reduced to £1 if I could and happily clear my debits whenever they asked; but but but!!!!

MarkyMarkD

t4mof wrote: »

To be honest my objection was that it was explained to me that they used last year's winter consumption (obviously the highest consumption of the year) to work out my yearly consumption and then the demand for payment of any arrears after the winter quarter. My understanding of spreading the cost by direct debit is that you.... well, spread the cost. I would expect to be in debit in March but then my summer consumption would ensure that by the end of summer I would have built up a credit to put forward towards the next winter. It really should be that straightforward!

That would depend when the annual payment plan starts and finishes.

As I've pointed out before, if your plan starts in (say) October, you will always owe them money because you'll start paying less than you use right away.

Conversely, if your plan starts in (say) April, they will always owe you money because you'll start off by paying more than you are using.

At the end of the annual plan you should have a zero balance, in theory, but you might have constantly owed, or constantly been owed. That is what people don't seem to understand - even if you've constantly been owed, doesn't mean that it's a scam or wrong, as long as you end the year with a zero balance.

And if you are an April annual review customer, just because you are owed money when they do an interim reassessment in October, following a price rise, doesn't mean that your DD shouldn't increase. You are in credit because you are supposed to be in credit, at that stage in your plan.

maytaurus

Is it correct .........?
that to pay N Power (dual fuel) by direct debit,
we have to pay the ammount they ask for and that they are
quote;
''not allowed to accept any other ammount ''
They say we have to pay £166 per month :eek:
We don't owe them any money by the way

MarkyMarkD

You certainly have to pay the amount they ask for, if you wish to stay on a DD payment scheme.

Whether they'll allow you to negotiate a smaller amount than the number they first think of depends on the company concerned and (apparently) who you speak to.

maytaurus

MarkyMarkD wrote: »

You certainly have to pay the amount they ask for, if you wish to stay on a DD payment scheme.

Whether they'll allow you to negotiate a smaller amount than the number they first think of depends on the company concerned and (apparently) who you speak to.

:rotfl::rotfl::rotfl::rotfl::rotfl:

I agree this seems to be the case
so
looks like they won't be getting any money off us upfront to claim interest on anymore

Cardew

maytaurus wrote: »

:rotfl::rotfl::rotfl::rotfl::rotfl:

I agree this seems to be the case
so
looks like they won't be getting any money off us upfront to claim interest on anymore

How much Interest do you get on your savings?

How much discount do you get for paying by Direct Debit?

backfoot

I thought i would revisit this thread even though I had hoped my saga with BG was at an end.

My case was well documented and they reluctantly not only accepted I was 100% correct but they paid me compensation.They didn't really want to do that but they realised I meant business.

So after all the hassle,I decided to move the account to a new supplier.BG had announced the Click Energy price rise 30/9 so i thought I would wait for Contractual Notice.That came mid november and I duly gave notice to change.As part of the settlement,I also put it in writing to the online escalation team that I had given notice and that the pre price rise charges would apply.She acknowledged that request.

Final bill arrives and you guessed it !!?? :mad:

I wonder if our friend Joyful who kindly showed us the BG's MD care and concern ,earlier in the the thread,would care to comment ?