Energy Direct Debits: Get money back & your payments lowered Discussion
edited 10 June 2010 at 5:36PM in Energy
326 replies 55.6K views
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Managed to find another supplier who does what i need and they're cheaper than SSE.
So it's probably goodbye SSE/Ovo
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"?
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.
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.
A company prefers fixed DD because the chance of a large bad debt is smaller and the processing is easier.
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
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