Gas Board Suggest I Amend my Direct Debit

Kavanne

I have been paying my gas my dd since Nov, I started with a £0 balance. I am now £224 behind (I have paid £47 per month). Now, they have sent a bill through (based on actual reading) suggesting to call to change my dd amount but am I right in thinking I will now start to catch that up as I use my gas less? I doubt we will use any gas in the summer, literally only for showers and that is 1.5 showers per day... so surely I will catch up and hopefully be back to 0 by Nov. Anyone else had this?

Magentasue

The idea is that you stay in credit. You start at zero in April, build up credit through the summer and use it up over winter. You get a discount for paying this way to compensate for building up a credit balance.

jem16

It never used to be like that. This April thing seems to be a recent addition to the energy companies way of thinking as it suits them better to have you build up a credit in summer to use in winter than for you to have a debit in winter to reduce through the summer.

KimYeovil

But you also never used to be given up to one hundred pounds or more for doing so. If you would like to forgo that 'discount' you are free to change to quarterly billing.

Magentasue

jem16 wrote: »

It never used to be like that. This April thing seems to be a recent addition to the energy companies way of thinking as it suits them better to have you build up a credit in summer to use in winter than for you to have a debit in winter to reduce through the summer.

It's not a popular view, but I think it's in the customer's interest too. Building up a debit balance is OK in theory but the number of people forced on to prepay because they couldn't repay their debt suggests that it causes problems. This is likely to happen more frequently with higher prices and more people struggling financially.

It doesn't seem to be a popular view - there are frequent posts claiming that the thieving energy companies do this to amass interest on our money, and while it's true it works in their favour, I think it's better for us to. If it wasn't for the DD discount, I could see why people would feel wronged, but as things are, I think it's fair to both sides.

jem16

KimYeovil wrote: »

But you also never used to be given up to one hundred pounds or more for doing so. If you would like to forgo that 'discount' you are free to change to quarterly billing.

I have had a discount for DD for as long as I can remember paying by DD and that's around 28 years - discount may have changed over the years but it was always there.

Depending on when I switched companies I have had both credit in summer and debit in winter. As long as it balanced out over the whole year it was fine.

jem16

Magentasue wrote: »

It's not a popular view, but I think it's in the customer's interest too. Building up a debit balance is OK in theory but the number of people forced on to prepay because they couldn't repay their debt suggests that it causes problems. This is likely to happen more frequently with higher prices and more people struggling financially.

I can see where you are coming from but of course not everyone is like that.

It doesn't seem to be a popular view - there are frequent posts claiming that the thieving energy companies do this to amass interest on our money, and while it's true it works in their favour, I think it's better for us to. If it wasn't for the DD discount, I could see why people would feel wronged, but as things are, I think it's fair to both sides.

The problem with that thinking is if you switch companies coming into winter. To work out your total yearly consumption and then divide by twelve would obviously see you starting off in debit. This didn't used to be a problem. Now the energy companies want you to pay more for that first 4/6 months until April so that you are at £0. This can work out pretty expensive.

Joyful

British Gas where I work still use the old system that you break even at the end of 12 months so would expect you to be in debit at the end of Winter. The problem is if at the 6 month check there is more debit than there should be the system will raise the amount so that the Customer does break even. To have that amount of debt with still more Cold months to go I think your DD should increase.

Fire_Fox

jem16 wrote: »

It never used to be like that. This April thing seems to be a recent addition to the energy companies way of thinking as it suits them better to have you build up a credit in summer to use in winter than for you to have a debit in winter to reduce through the summer.

But even the OP doesn't think she will be breaking even until November - no doubt just at the point they will be switching the heating back on. Without an increased DD the OP will be permanently in debt.

Kavanne

I want to be back at £0 1 yr after I started the DD. So back to where I started... surely as long as it gets back to £0 at or before the 12 months is up, that is OK?

shadeylady

Yes, it is. I used to work for a gas and electric company and the DD should be based on 12 months usage. They may be trying to prevent a debt situation but they will also be getting interest on credit balances. At the end of the day we are all adults and you can monitor your usage through the coming months and change the amount as yu see fit. If you do not want to increase the DD then call them and tell them, they must do what you ask.DD's are controlled by US not them!