Grandmother being ripped off by BG

espresso

allan673 wrote: »

very true espresso, i cant argue with you. but she may feel more in control? especially if they refund all the credit she has.
i cancelled my dd as i was hundreds in credit yet they kept upping my dd.i never had a problem with my energy dd's untill the last 6 months.it just annoys me that they increase them by a ridiculous percentage when your already in plenty of credit.

:doh:

Why did you let your supplier increase your DD? It is very easy to work out what your DD should be, based on your previous usage and current unit prices, so you can tell them what it actually need to be!

Former_E.ON_Company_Representative:_Malc

Hi

Direct Debits are a good way of managing your account as they spread the cost over a year with 12 equal payments. You can also earn extra discount by using them.

You do need to keep your eye on them though. When a bill is sent it should tell you the amount of credit or debit on the account. If either is building up something may be wrong.

When working correctly you should see a credit balance building during the summer months. This is to help with higher winter bills.

If the credit or debit continues to increase you need to check meter readings are not being estimated. If the readings are accurate the Direct Debit is either set too high or too low.

Call your supplier and ask them to check the arrangement. You can do a rough calculation yourself using your grandmothers’ old bills.

Ask them to refund part of the balance and re-set the Direct Debit at an amount suitable for the account. I would not recommend having all the credit back as your grandmother may need to leave some money in place for the next winter bill. Given the current bad weather and previous price rises this is likely to be more than in previous years.

I think you being present when she calls is an excellent idea.

Malc

Sagaris

espresso wrote: »

:doh:

Why did you let your supplier increase your DD? It is very easy to work out what your DD should be, based on your previous usage and current unit prices, so you can tell them what it actually need to be!

I did precisely that last week - but the agents are very well trained in trying to persuade you that the payments need to be so high, as they prefer you to be in credit with them! Luckily I stuck to my guns and should break even, if my calculations are correct.

ethansmummy

Thats why I refuse to use Direct Debit. I like to control what comes out of my account. British Gas are a nightmare. Very underhanded.

smidgey

espresso wrote: »

:doh:

Why did you let your supplier increase your DD? It is very easy to work out what your DD should be, based on your previous usage and current unit prices, so you can tell them what it actually need to be!

Sadly this is not the case - It's an agreement between the two, if an agreement cannot be reached you have the option of paying by quarterly variable DD or on a quarterly basis.

Obviously people have success when they come across and advisor who doesn't want the confrontation or isn't confident in dealing with these enquiries. I've spoken to numerous people who are not happy with their direct debit installment and have opted for a quarterly bill as I have not been willing to reduce the installment to the amount they wish simply because it's not enough to cover consumption.

Your DD calculation can be broken down to the KWH on BG's system if you dig deep enough.

Classic scenario below (all amounts completely fictitious).

You have your annual reassessment in May. At this point your account is £51.62 in credit.

Your expected consumption for the year is £691.24. So

£691.24
-£51.62 in credit
£639.62 to pay for the year
£639.62 divided by 11 instalments = £58.15 (rounded to £58)

In November you have your mid term reassessment which checks that you're on track for zero balance in time for your next annual reassessment. At this point your account is £150 in credit.

Consumption is recalculated because MR that comes in at this point is slightly higher than previously expected, plus price increase from July affects consumption. Consumption is now recalculated at £1028.21 for the year

So £1028.21 for the year
-£51.62 credit you had on your account (at annual reassessment)
-£348 in payments already received (6 payments of £58) equals
£628.59 to be paid over the 5 remaining instalments
DD is set at £125.72 (rounded up to £126).

This obviously raises the question. I am £150 in credit why are my payments increasing to double what they were? It's clear to us why but not to the customer.

The DD can be reduced by 10% advising the customer that this may lead to a debit balance at the next annual reassessment which would be recouped in the next years plan. If the customer does not believe/does not want to pay this amount then of course the customer can pay the bill as it comes in each quarter.

They are difficult calls to deal with and I fully appreciate the customers point of view but it's not an option unfortunately to keep the DD at the amount what it was, it simply would not be enough.

espresso

smidgey wrote: »

Sadly this is not the case - It's an agreement between the two, if an agreement cannot be reached you have the option of paying by quarterly variable DD or on a quarterly basis.

It is the case or you simply inform them that you will be switching to another supplier!

I have not had a supplier that would not agree to my calculation for monthly DD payments. Why should they disagree, if your figures show that your DD will cover the cost based on your previous consumption history?

alleycat`

I have to say that to some degree i agree with espresso.

Some of us out there are not totally dumb when it comes to money.

I phone up my supplier (BG) and move my DD up and down (quarterly) based on real weekly calculations of what we are using.

My quarterly balance is almost always a few pounds in credit (be it summer or winter) and thats it.

I don't want or need for my supplier to build up a nice fat nest egg of my money based on theoretically what i might use / prices come January 2010.

I chose to put that money away and earn my own interest on it (what little is on offer atm) thanks all the same

peachyprice

espresso wrote: »

:doh:

Why did you let your supplier increase your DD? It is very easy to work out what your DD should be, based on your previous usage and current unit prices, so you can tell them what it actually need to be!

This is an old lady we're talking about here. The kind of customer BG preys on, they trust good old BG to treat them properly so don't query anything.
.

It's only when the OP's grandson looked at her bills he realised something wasnt right.

espresso

peachyprice wrote: »

This is an old lady we're talking about here. The kind of customer BG preys on, they trust good old BG to treat them properly so don't query anything.
.

It's only when the OP's grandson looked at her bills he realised something wasnt right.

Err no it's not!

Been here lately?

allan673 wrote: »

very true espresso, i cant argue with you. but she may feel more in control? especially if they refund all the credit she has.

i cancelled my dd as i was hundreds in credit yet they kept upping my dd.i never had a problem with my energy dd's untill the last 6 months.it just annoys me that they increase them by a ridiculous percentage when your already in plenty of credit.

:rolleyes:

peachyprice

Thanks for that smart @rse.

The thread is about an old lady, being taken eadvantage of.