Gas Elec

StueyR

I was talking to a m8 about British Gas etc. We both pay by a monthly payment plan paying the same each month ie so you wont be facing a big bill in the winter, So for example you pay all summer and end up 200 in credit for the winter not much really but how many people pay by budget account or monthly payment plan? 10.000, 100,000 ? Just say 100,000 (could be many more) so that is 100,000 xs 200 in credit = 20000000,a lot of money. And its not for Fuel used its for fuel to be used at a later date, OK the 200 wont earn me much interest, but the 20000000 will earn the companies a lot of interest, shouldnt the Gas Companies give all those on the payment plan / budget account some form of rebate or is that asking to much, I`d welcome your views on the subject. No wonder they making so much profit Stu

anniecave

It's called a direct debit discount. And it's worth quite a lot usually! (a lot more than any interest).

Gas and Elec companies are willing to give good discounts because it's a good guaranteed income stream for them, and it helps people budget

And if you think about it, they bill at the end of every 3 months, so some of it is just for power that they haven't yet billed you for!

KimYeovil

I don't think the op is talking about Direct Debits. Monthly payment plan customers often do not receive discounts. And often pay higher prices.

anniecave

ok my apologies then...

it's still sometimes the best way for customer's to budget. I guess if you don't like it, you can always ask to pay by another method ... or switch supplier!

KimYeovil

OP, apparently suppliers can not claim interest on such advance payments. I've no idea how that is implemented in practice, though.

SwanJon

Swings and roundabouts really.
Plenty of people on here are complaining that their payments have gone up and "shouldn't supplier X have spotted this before".
Should all these people pay interest on their debt?