Energy Direct Debits: Get money back & your payments lowered Discussion

[Deleted User]

swfcowls said:

Just had SSE tell me they are changing me from Variable Quarterly DD to Monthly DD, which apart from being more expensive to me, doesn't seem fair, especially as I've never had any issues with the VQDD, paying in full everytime. From someone having MH issues, taking this away from me, where i was in control of my money, to that of being forced to pay whatever they decide, isn't going to help with MH, just make it worse, worrying about it from now on. Does anyone have a number for SSE, as their website and APP are useless when it comes to wanting to contact them.

SSE are no longer offering variable direct debit, so ringing them won’t help.

swfcowls

It seems that the staff didn't know that variable quarterly direct debit was included with those payments being scrapped. 

Managed to find another supplier who does what i need and they're cheaper than SSE.

So it's probably goodbye SSE/Ovo

Xs500

Would someone clarify for me what "variable" means in an energy billing context?
My EDF standard monthly variable tariff had a DD of £177 each month which remained the same amount each month and was only varied when EDF either changed the cost of energy or at an annual review when EDF looked at my past annual usage and adjusted each monthly DD for the forthcoming year accordingly. ie, estimated annual cost divided by 12.

The other interpretation of monthly or quarterly variable DD could be that the bill is paid monthly/quarter by DD but the sum due for that month/ quarter is based on the actual or smart meter readings for the energy used that month. Ie, varies by season.
Which is correct? Are all energy suppliers consistent in their use of "variable"?
Comments please.

[Deleted User]

Do you mean variable tariff or variable direct debit?

The first means that the price can change.

The second means that the DD amount will vary every month to exactly cover the actual/estimated usage.

Your EdF tariff is an example of a variable tariff with fixed DD.

swfcowls

A variable quarterly direct debit, is where the supplier take only what the quarterly bill amount is due, through a direct debit.

The energy company don't get more money than is due, so it's beneficial to the customer, not the supplier, as they won't be holding any extra money. That is the main reason they're scrapping the VQDD, as they want as much money from you, as they can get away with, and the interest that comes with a shed load of customers savings. 

[Deleted User]

swfcowls said:

A variable quarterly direct debit, is where the supplier take only what the quarterly bill amount is due, through a direct debit.

The energy company don't get more money than is due, so it's beneficial to the customer, not the supplier, as they won't be holding any extra money. That is the main reason they're scrapping the VQDD, as they want as much money from you, as they can get away with, and the interest that comes with a shed load of customers savings. 

The interest on balances are minor, and they represent a large liability on a company’s balance sheet which is a negative for their financial position.

A company prefers fixed DD because the chance of a large bad debt is smaller and the processing is easier.

swfcowls

One debit every 3 months for the exact amount due, is cheaper to process than 12 debits a year and having to monitor what DD need increasing. VQDD work fine, so they should leave it alone. It wouldn't stop people from having monthly DD, should that be an option 

[Deleted User]

swfcowls said:

One debit every 3 months for the exact amount due, is cheaper to process than 12 debits a year and having to monitor what DD need increasing. VQDD work fine, so they should leave it alone. It wouldn't stop people from having monthly DD, should that be an option 

Offering two different payment methods is more expensive than offering only one. They have no obligation to offer VQDD however well it works for you.

Alnat1

Most people prefer monthly billing as it matches with their salary/pension arrangements. It also allows them to keep a closer eye on how much energy they are using and no chance of a big 3 month shock.

Most providers are moving towards more regular billing and away from quarterly/half yearly systems and it is simply something you're going to have to accept. WAWAW 

swfcowls

They don't, but who says it should be monthly and an amount that is more than actually needed. They could just bill once a month in arrears the exact amount due. That would be fairer. Fancy paying a bill that is accurate, it's so 1980's and means the customer isn't paying out more than they can afford, whereas the 2020s is about looking after the business, not the customer. It wouldn't be a shock if you save regular into your own account and then use your money for the payment that is due. Its what i do, never had payment issues and anything leftover stays in my bank, where i can access it instantly, if something else needs it.