Energy Companies Allegedly Misuseing Direct Debit Scheme

LesU

Points to watch out for regarding DD.
I'm with Atlantic both for Gas and Electric and I've just had my annual assessment bills in.

In the middle of the year there was a gas price increase. Close examination of the bill revealed that although days before compared to days after the rise was about a 60:40 split, the assumed gas usage split was 40:60! Recalculating with correct proportions gave me another £50! In all fairness, when this was pointed out over the phone, it was accepted without question and a new bill issued.
So the lesson is, check the number of days before and after a price rise and check the usage split is identical.

When the electricity bill arrived I was pre-warned to check for that error, but, although I still didn't agree with their calculated proportioned split, it wasn't enough to make a fuss over.
However, everyone should check that their final meter reading of the year is correct, especially if estimated.
Mine was estimated and it was too high.
What this does is double what they think you owe them. You will be paying for electricity up to the bill's date that you didn't use, but then they use that wrong figure to estimate next year's usage. So the DD payments for next year will be up by twice the error. Atlantic wanted to increase my payments, but with the revised meter readings, they agreed to keep them the same.

Cardew

mardatha wrote: »

It's not meaningless if I would be paying more each month AND going through all this hassle that I'm reading about !
I read the meter every week; work out how much I've used; put the money aside; never accept an estimated bill; pay it cash when I get it.
What's wrong with that ? Sorted. With no fuss, no hassle, no worry. The amount I'm supposed to be saving by using DD is not worth this nonsense.

By meaningless I mean that you can't argue they wanted £45 by DD and I only pay £40 a month quarterly for the same tariff and conclude that DD is more expensive.

If you are on the same tariff you pay the same amount and then you get a discount for DD.

DD is absolutely no hassle for the vast majority of people - I have about 15 monthly and they save me masses of time and in most cases money.

Even some like water, where I get no discount for DD, I use as it is trouble free.

jesdan

Just thought I'd add my bit too - last week got a letter from Eon saying that my DD was rising by an extra £10 per month (not a lot I know) but couldn't understand this as the amount I paid certainly covered the usage and more besides (to cover for Winter higher costs), when I phoned they admitted they could not understand why this letter had been sent out, they would set the DD at the original level and wait for the actual readings before assessing again. Only a few days later did someone come round reading the meters and again, working out the bills from these readings means that I'm still in credit (to cover for the major winter bill), so all I can say is query it at the time of any readjustment but PLEASE consider winter bills are normally (if I'm anything to go by - probably not considering all you fantastic money saving people) much more expensive!

DirectDebacle

mardatha wrote: »

But I cant understand why anybody would pay over the odds jsut to have a teeny wee saving ! Why not work out your monthly useage and then put that DD into a savings account just for that bill ?
A few months ago I read on here that it was cheaper to pay by DD, so phoned them, the lady at Scottish Power quoted me £45 a month DD. We pay cash quarterly at present and it works out at £40 a month. So I told her forget it. No matter how you dress it up or crunch numbers , that is costing me MORE not less !

It may well cost you more. Payment methods are subjective and what suits you may well not suit me. That doesn't make my method any better than yours or vice versa. Just different ways of paying and we all have to pay. Nice to have the choice.

Terms of my fixed rate are:
1. Dual fuel
2. Pay by monthly direct debit.
3. £75 p.a. discount for the DD

I could change to a new method of payment but then I would come off the fixed rate and lose my discount. I was aware of this when I signed up and accepted those terms. My income is pretty much fixed so it is important to me to be able to plan and spread my payments as evenly as possible over 12 months. At the moment my energy is competitively priced. If it comes down 45-50% then I will look into switching. So for me, at the moment, it works. As my user name suggests I am not a big fan of direct debits, much prefer standing orders.

There have been many posts recently regarding DD increases. I gave mine as an example of how it should work and has been said if people understood them properly there would be fewer complaints. If the energy companies explained better in their letters why they have increased a DD then that may be helpful.

MarkyMarkD

The way that energy suppliers show their calculations has gone massively downhill - or maybe it's just that I've changed from "good" suppliers to "bad" suppliers.

If only they showed you a proforma for your annual consumption, showing usage and therefore cost in £, then added or deducted the starting balance, and then divided by 12, they would get a figure which you could clearly either agree with or challenge.

The fact that they make it so opaque is, I'm sure, why there are so many (albeit mainly incorrect) complaints about being over-charged.

DirectDebacle

mardatha wrote: »

It's not meaningless if I would be paying more each month AND going through all this hassle that I'm reading about !
I read the meter every week; work out how much I've used; put the money aside; never accept an estimated bill; pay it cash when I get it.
What's wrong with that ? Sorted. With no fuss, no hassle, no worry. The amount I'm supposed to be saving by using DD is not worth this nonsense.

Ok. I admit I had to spend 10 mins on the phone to get my DD put back to what it should be and I might have to do it again in February. I have to check the meter readings are in line with the ones shown on my quarterly statement. It is a hassle.

You read your meter weekly, work out your bills, stuff the money under your mattress and presumably phone up with your own readings when you receive an estimated bill and request the bill be recalculated. Then you trot down to the Post Office or bank, running the risk of being 'mugged' for the cash, queue up if you aren't, and pay the bill. That is no hassle for you.

As I said in my previous post, what suits one person may not suit another.

mardatha

yes I agree, not arguing but I live remote and am not likely to be mugged ( unless the sheep get very militant ), and the bank is always quiet so no queues. I was talking about the hassles some people in here are having, and that I personally couldnt be assed with it.
Was just trying to say that if you're having a fight with utility companies re DD payments then there is an alternative ! Choice is always a good thing...

DirectDebacle

Sheep aren't stupid. After several years of watching you go to the bank regular as clockwork every quarter they'll soon work out when your house is full of cash and burgle it. Won't be moaning about DD's then will you.;)

bristolleedsfan

MarkyMarkD wrote: »

If only they showed you a proforma for your annual consumption, showing usage and therefore cost in £, then added or deducted the starting balance, and then divided by 12, they would get a figure which you could clearly either agree with or challenge.

.

"If only" their computer systems were fit for some kind of purpose. :rolleyes: Total adjustments is 69.00 x 2 Monthly credits they formed an opinion that they could get from my Bank Account without prior agreement or notification, one of which was reversed over two weeks ago, the other they cant now take because direct debit was cancelled over two weeks ago, less a credit I still have. :j

( Ive previously had a paper bill showing amount Credit 2.33)


View Your Bill: 24 Nov 2008


Customer number: 8500………….
Bill date: 24 Nov 2008
Your Gas bill

Your current tariff is: Gas Click Energy 6
Your current balance is £66.67

Payment now due

Summary

Bill period: 08 Oct 2008 to 10 Nov 2008
Starting balance:

£0.00

Gas you've used:

£0.00

Payments received - thank you
cr

£69.00

Adjustments
Total Adjustments Amount

£135.67

Savings No savings
VAT at 5%

£0.00

Amount now due:

£66.67

mardatha

they'll soon work out when your house is full of cash and burgle it
***********
HMMM. THIS IS INDEED POSSIBLE. I BETTER GET A COLLIE!!:)