Massive Increase in Direct Debit for duel fuels

debtqueen

I have just had a massive increase in my direct debit for my duel fuel. I was paying £30 a month (for both) and now they want to change it to £250 a month. Whilst I appreciate that I need to pay off the debt accrued over the winter months, I don't know how I can pay this.

Given that I have not used any more gas/electricity than in past years (have taken into account price increases) - in fact I have reduced my energy consumption to hopefully weather the price increases. I have never been in this situation before. I live on my own, in a 2bed terrace and I capped my fuel prices just before the main price increases last year.

How have other people managed - I think at this rate I will not be able to have any heating next winter - I work from home, so life is going to be quite miserable.

I have read on another thread that you can have a prepay meter, but I have also read that you pay more for fuel this way, so I really don't think this is the answer.

The most annoying part is that for the quarter to February, my statement total was £424.68. My latest statement to 31st March shows my account balance at £647.96 - why didn't they increase the DD Feb, which would have made things a little easier. Amazingly in my latest bill the total cost of my gas useage has reduced and the cost of my electricity useage doubled (estimated), and thats with a price drop too. The cynical part of me feels that they do this so that it is more difficult to switch suppliers

What can I do, as I can't pay this each month.

Magentasue

First of all, check your meters. Make sure that you balance is based on accurate, not estimated readings. Check that your gas is calculated correctly. If you have a metric meter (cubic metres), the number of kwh charged should be approximately eleven times the number of units.

Now work out how accurate the balances are. Work out how much you can afford each month and make an offer. If you cannot afford what is asked (and I think it'll be nearer to £250 than £30), prepayment meters and a massive reduction is what you use will be your only options.

Depends on your house and lifestyle, but I'd have thought £50 - £100 a month for a two bedroomed house with someone home all day was realistic unless you are being very careful and have a super-insulated house. So, even when you've cleared the debt, an increase is likeky.

KimYeovil

debtqueen wrote: »

How have other people managed - I think at this rate I will not be able to have any heating next winter - I work from home, so life is going to be quite miserable.

We have these objects called 'meters' in our homes. We look at the readings on the bills, we look at the readings on the meters, we look at the outstanding balance on the bills. If we are rich and are paying £30 per month with a £400 balance we shrug our shoulders and pocket the interest whilst waiting for the supplier to catch up. But most of us are poor and we stick a hundred pounds aside per month to pay off the bill. And we would reduce our useage.

debtqueen

KimYeovil wrote: »

We have these objects called 'meters' in our homes. We look at the readings on the bills, we look at the readings on the meters, we look at the outstanding balance on the bills. If we are rich and are paying £30 per month with a £400 balance we shrug our shoulders and pocket the interest whilst waiting for the supplier to catch up. But most of us are poor and we stick a hundred pounds aside per month to pay off the bill. And we would reduce our useage.

That was helpful.:T

I switched suppliers to save money and when I did this I was asked how much I was currently paying, which at the time was about £60 for both Elec & Gas. Was told that I would only have to pay £30 with new company. I would assume that the energy supplier would have more experience than me in estimating how much I should pay per month based on previous useage (I pay monthly so that I can budget for my energy supply). It would seem that energy suppliers purely come up with a cheap price in order to beat the competition and not to reflect what it might actually cost you. Again, I would expect an energy company with 1000s of customers to be able to estimate more reliably. I always expect to be in debit after the winter and the summer payments make up for this, which was what I was told when I queried the low payment initially.

KimYeovil

debtqueen wrote: »

That was helpful.:T

Glad to be of service.

Moglex

debtqueen wrote: »

I have just had a massive increase in my direct debit for my duel fuel. I was paying £30 a month (for both) and now they want to change it to £250 a month. Whilst I appreciate that I need to pay off the debt accrued over the winter months, I don't know how I can pay this.

Given that I have not used any more gas/electricity than in past years (have taken into account price increases) - in fact I have reduced my energy consumption to hopefully weather the price increases. I have never been in this situation before. I live on my own, in a 2bed terrace and I capped my fuel prices just before the main price increases last year.

How have other people managed - I think at this rate I will not be able to have any heating next winter - I work from home, so life is going to be quite miserable.

I have read on another thread that you can have a prepay meter, but I have also read that you pay more for fuel this way, so I really don't think this is the answer.

The most annoying part is that for the quarter to February, my statement total was £424.68. My latest statement to 31st March shows my account balance at £647.96 - why didn't they increase the DD Feb, which would have made things a little easier. Amazingly in my latest bill the total cost of my gas useage has reduced and the cost of my electricity useage doubled (estimated), and thats with a price drop too. The cynical part of me feels that they do this so that it is more difficult to switch suppliers

What can I do, as I can't pay this each month.

Quite honestly, those figures do not make any sense.

At ~£250 a month you would be paying £3000 a year.

You say you have a £648 balance which would require £54 a month to pay back over the course of a year.

Over three months your costs have been ~£220 and you have paid £90 meaning that you usage per month is ~£103

Thus, if the figures are correct your DD should be around £160.

However, the usage figure seems a little high. Are these actual meter readings?

If so, are they correct? If they are correct, were the previous ones estimates?

It could be that you have been using energy at a slightly hitgher rate than the company has estimated over past quarters but it is all being apportioned to one quarter (yes, they really are that stupid sometimes).

Magentasue

I think, moglex, you'd need accurate annual figures to make these calculations. Also, I would have thought that suppliers would want a winter debt repaid in less than twelve months, at least in the first instance.

Moglex

Magentasue wrote: »

I think, moglex, you'd need accurate annual figures to make these calculations.

Obviously. That's why I said:

However, the usage figure seems a little high. Are these actual meter readings?

If so, are they correct? If they are correct, were the previous ones estimates?

I'm just showing how unrealistic they are.

Also, I would have thought that suppliers would want a winter debt repaid in less than twelve months, at least in the first instance.

Really?

I was under the impression that setting the DD amount so that if things carried on as they had in the past the balance would be zero in 12 months time was standard.

When I changed supplier they sent me an explanation of their DD policy and that was how they worked things.

It's a reasonable compromise between not overburdening a customer and getting the money they are owed in a reasonable time frame.

Maybe it's not the same for all suppliers?