Worried!

rainy233

Hi

I am new to this but i will give a go. I have just changed from a pre payment gas meter with n power to a m3 meter to pay monthly dd, but I am so worried that we will get a ridiculous bill as couldnt afford the pre payment! How can I calculate what I have used so as not to get a nasty shock when dd set up. Any help would be great thanks in advance

Magentasue

Find out how much you pay per kwh (about 4p or 5p). Read your meter and muliply the meter units by 11.

So, 10 meter units is approx 110kwh x 4p = 440p = £4.40.

Roughly. You need to add VAT and deduct discounts but the above will give you a good idea of how much you will have to pay.

rainy233

thanks getting back so quick well i read the meter i only had installed yesterday and it at 3 that is not including the digits in red boxes so that would be 33 kw right? How much does that estimate it will cost me per day?
Is that good for having it from yest morning i am in 2 bed flat gch and gas cooker Thanks

Magentasue

Yes, 3 units is about 33kwh. Say, you're paying 5p per kwh, that's about £1.65. You ignore the red digits.

I have a three bed house and use gas to heat hot water for six so, obviously, use a lot more than you! If you used 3 units a day for a quarter, that would be about:

3 x 91 days = 273 units x 11 = 3003 kwh
3003 kwh x 5p = £150 or £50 per month.

Obviously, you'll use less in the summer when you're not using heating, so your DD payment should go down after the next bill. Does that sound reasonable compared to what you were putting in your meter last meter?

Bear in mind you may be paying less than 5p per kwh.

rainy233

Thanks alot I think it about the same cost but i have used 3 units that in about 31 hours so this be cheaper then £50 per month. Also how does the dd work will they just do a set amount to begin with then once work out what i have used alter it and will the dd go down in summer do they just guess how much less i will use? Sorry lots questions i was debating for long time weather to get rid pre payment but had to in end as could not afford to heat flat.

Magentasue

Well, most suppliers now aim to have you at a zero balance in the spring. After that, your DD payments should be roughly 1/12 of your total bill. If you know how many kwh you use in a year, and how much you pay per kwh, you can work it out. Otherwise, keep an eye on your account. By, say, October, you need enough credit to pay for your winter heating so you don't go into debt.

What you don't want, is to be in too much or too little credit. The supplier will come up with a figure based on what information they have and averages - it's up to you to make sure they are on track! It would be helpful if you could keep reading your meter as this is valuable evidence if they set the DD too high or low.

Premier_2

The idea of paying monthly by DD is that you pay the same amount every month, so levelling out your payments (since you probably earn the same every month) rather than having to pay more in winter than in summer which you would do if you paid on receipt of bill.

So no the DD will not be reduced in summer.

They will monitor the consumption Vs the amount collected to make sure you are paying enough over the year to meet the bills for the year ... and will adjust up or down accordingly to suit.

rainy233

when was on pre payment meter i would obviousley pay less in summer then in winter so how can they set my dd at roughly the same cost per month but have it all through the year surely i am paying alot more a year as i would have saved during summer with pre pay?

Magentasue

Premier wrote: »

So no the DD will not be reduced in summer.

The reason I said it might be reduced is that, energy suppliers seem to be setting high DDs for customers who open accounts in the winter, and then reviewing in the spring. I think it's quite possible that the OP will have to pay a higher monthly amount that could be reduced after the first quarter.

Apologies if this isn't the case.

rainy233

So it may be that in 3 months time they will do an actual reading and adjust accordingly? Also questions from previous thread thanks

rainy233

I worked out that if carried on using gas as am doing then i would use 8544 kwh per year not taking into account reducing in summer what would this cost and is it a good price?