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

wrf12345

"Hi, I’m with British Gas, paying Direct Debit at £130 a month, I am currently in credit by £700 as British Gas say because I haven’t been billed yet (every six months ) that the dd has to stay the same. I’ve used the tool on MSE that says I should be at £78 on dual fuel, previously I’d accrued so much credit last year that I went down to £50 a month because of all the credit. I don’t want to go into variable monthly payments and also don’t want to have to wait while THEY decide I can go back down in 6 months time. 

The six month bill seems to be the issue with them even though I have a smart metre. "

Seems to be something wrong there, that six monthly billing is supposed to be for pay on receipt of bills not direct debit customers and if you have a working smart meter should be billing you every month, they may have migrated you to their new accounting system and got something wrong so the next question to them should be why you are you on the wrong billing cycle for DD. Slightly more expensive, but you can always cancel the DD and pay on receipt of bill, and they will use up the credit you already have at the next bill, which may or may not be sufficient to cover the bill. Lots of customers just move somewhere else, tired of the constant hassle and half hour needed to get someone on chat.

LoveAllThingsCake

I am with EON and am in credit (have been for most of the year). They are willing to give me £300 of the £438 credit I am in, but are stating on the dashboard that my payments will have to go up from £171 / month (dual fuel, variable tariff) to £192 / month.  I don't understand why I can't have the £300 back or even £250 back and my payments stay the same.  I could probably get even more back if I switched to a fixed tariff but all of the tariffs require a smart meter or installation of one, and I'm not keen to get one.  Wanted to get some advice before I spend along time trying to speak to a human in their call centre.  Thanks in advance.

Scot_39

EOn / EOn Next now have never argued with me when I used

New Dd = (forecast cost at latest rates + 5% margin - balance)/12

To set my dd level.  I used to have to phone it in so did the maths and they often noted figures on account notes.


I am not saying that is exactly how they actually would do the maths - just that it worked for me.

Where balance is positive for credit reducing amount of regular payments in future to reduce target credit to zero, negative for debit, so needing higher payments clear debt and pay new usage.

Last time I checked there revised DD I was going to be £5 in credit at year end down from then £320 - using their price change summary estimate.  And adjusting balance for 20 days use not yet debited from the displaced online balance.  So it's not a bad guess.  So in reality my DD was set c£25 below actual use to clear that credit.

I refused an initial refund offer, but with price drops  the balance wasn't reducing so took about £200 out last October - and yes my DD went up when did so.

As their is a price change ongoing my refund option has once again been masked - but it is now sub £100 and should really be building credit for winter anyways.


That on the basis you aim to clear balance to zero at end of 12m period.   But the firms - some more than others - arguably encouraged by regulator warnings not to allow excess debt  - no longer like any debt at any point in annualised DD cycle - so sometimes seen much higher DD requests posted here to shift the cycle in their favour.

But getting back to your current question, suspect the problem is your higher credit is likely already reflected in the current - so therefore reduced -  DD calculation.

If you have had a new DD set by EOn  (I have had at least 2 if not 3  - since Jul 23 cap fall and might yet get one for Jul price drop - they appear more regular than before - the last one explicitly referenced my credit - and my DD dropped by more than they said my payment was out with my predicted energy costs at new rates) - chances are they have planned to use up credit in setting it.


Have you compared your actual current annual running energy costs forecast / 12 with your DD level to see if it does reflect past credit ? 

The figure will be on price change summary letters in Mar for Apr cap change or recently for July if on variable tariff ?

Reduce the credit balance - the required DD goes up.

If use my rule of thumb c£8.33 (£100/12) for every £100 lifted - but there only adjusting £21 not my £25 assuming that was for £300.