Energy companies overcharging direct debit customers..

1carminestocky

...according to Which.

Monday, 23 Mar 2009 14:50
Energy suppliers are taking unnecessarily high direct debit payments, effectively using their customers’ money as interest-free loans, according to new research.

The average energy customer has overpaid £74 for electricity and £84 for gas. A total of 64 per cent of electricity and 69 per cent of gas accounts paid by direct debit are owed some credit.

A quarter of those who pay their energy bills by direct debit had a credit of more than £100 and eight per cent are owed more than £200, according to a survey by consumer group Which?.

cont..

KimYeovil

Where's the beef?

Martyn Hocking, editor of Which? Money, said: “While a small amount of credit built up over the summer months can be used up during the winter, it’s difficult to see how a £200 credit will be used up – particularly as the customer makes the same payment each month."

??? Complete rubbish. £200 is a minute credit. The spokesman is clearly an innumerate.

SwanJon

This sounds dangerously like the same story (and the same survey) that was about in Sept/Oct (IIRC).
It doesn't mention when the survey was conducted, as a £200 credit before the winter is a totally different story to a £200 credit in March. (or for that matter £74/£84 credit in March.)
Also no mention of DD discounts to compare to lost interest.

Katie-Kat-Kins

I think npower are trying to do this to us, we have built up a debt with them due to them previously reducing our direct debit but now seem to be setting our new figure much higher than necessary and vastly overestimating our usage.

adprob

I phoned up Hydro last week gave them upto date meter reads and asked to reduce my dd given the price decrease. I am due them money from my account 6 mths ago but the when i talked through what i had worked out and showed that the os balance would still be clear within the 12mths from the bill being issued they were happy. 136 pm down to 95pm.

not often you can say this but well done them

1carminestocky

SwanJon wrote: »

This sounds dangerously like the same story (and the same survey) that was about in Sept/Oct (IIRC).
It doesn't mention when the survey was conducted, as a £200 credit before the winter is a totally different story to a £200 credit in March. (or for that matter £74/£84 credit in March.)
Also no mention of DD discounts to compare to lost interest.

It's actually from April 2009's Which? I believe, SwanJon. It's a new survey by all accounts. HTH.

logie28

Really is pathetic isn't it?

My gas went up from £43 to £73 in November, i rang and asked BG to set my DD at £40 as this would be enough to cover my winter bill, i was already in credit by quite a bit, was given the usual rubbish off them, higher costs blah blah blah, when i told them my OH was now working , no body in house during day, i was told computer could not take this into consideration!!

Complained, got no where, just recieved my winter bill, guess what?? £40 a month for gas would of easily covered my charges ( as i was already in credit)

I haven't been refunded my credit, i thought it was automatically refunded at £200??

Now waiting for my payments to go down to a ridiculous amount. Normally about £7 a month , just so they can keep their greedy grubby mitts on my money for longer!!

As soon as this happens..........again, i will cancel my DD and set up a standing order. I feel this is the way forward if you have a reasonable idea how much you use.

olly300

I refuse to do DD as I have atypical periods of high useage.

I now have had problems with electricity billing from 2 companies whose systems can't understand that over estimating my bills by 3-4 times what I use for 4 quarters due to one quarter of high useage means I will give them a customer meter reading.

Making it harder to give a meter reading by refusing to take it online or via their automated phone service meaning I have to queue up for a customer service advisor or phone during certain hours, even though a meter reader has read my meter at least once a year so they know I'm not fiddling with my low readings will p*** me off and won't give me any inclination to pay by DD.

In fact I am currently in the process of changing electricity supplier again due to them refusing to bill me for 6 months. They actually claimed today they sent me a bill out over a month ago but I've not received it, or the red bill that would follow in a month. They also can't explain why I have received a gas bill from a meter reading given at the same time - billing comes through the same company but different brand name - but not an electricity bill.

1carminestocky

Just to confirm, it is definitely a new survey.

http://www.which.co.uk/news/2009/03/energy-direct-debits-are-free-loans-to-firms-172473.jsp

dzug1

logie28 wrote: »

As soon as this happens..........again, i will cancel my DD and set up a standing order. I feel this is the way forward if you have a reasonable idea how much you use.

There is a disadvantage though - you will lose whatever discount you got for paying by direct debit

SwanJon

1carminestocky wrote: »

Just to confirm, it is definitely a new survey

1carminestocky wrote: »

http://www.which.co.uk/news/2009/03/energy-direct-debits-are-free-loans-to-firms-172473.jsp

Thanks, couldn't find it when I looked (OK, not very hard).
Says it took place 'in winter' - any members know if you get an actual date on the survey itself? The later on it was conducted the more damning it would become, as a February bill would include the three coldest months.

I'd agree that if you give them enough readings then the estimates should become more accurate - or any (ahem) mistakes become more obvious.
I think most suppliers have a free way of getting a reading to them, either freephone numbers or the web.