MSE news: Crackdown on exorbitant energy direct debit demands

Former_MSE_Guy

This is the discussion thread for the following MSE news story:

"Energy firms will have to stop unfairly grabbing consumers' money by setting exorbitant direct debits (DD) demands, under propsoals annonced today by the industry regulator.

The move follows an MSE campaign to stop providers making millions by setting payment demands well in excess of your true consumption, as often happens ..."

Read the full story:
Crackdown on exorbitant energy direct debit demands

1carminestocky

Have Ofgem suddenly been forced to accept performance-related remuneration? This is twice in 2 days they've gotten oh so tough.

Toxteth_OGrady

Why can't they just set up variable whole bill direct debit as an option in the same way that BT does for phone bills?

TOG

1carminestocky

I'm sure they can but they can't bill monthly, that's the real problem, I suspect. Actually, they CAN bill monthly, of course, but they won't...

Perelandra

British Gas, at least can- I suspect others do as well. With us, you can pay by "Quarterly variable Direct Debit" (as opposed to "Monthly (Fixed) Direct Debit).

No "Monthly Variable Direct Debit" though, so it's closer to a quarterly cash/cheque account, except you don't actually make the payment yourself each quarter.

Toxteth_OGrady

Perelandra wrote: »

British Gas, at least can- I suspect others do as well. With us, you can pay by "Quarterly variable Direct Debit" (as opposed to "Monthly (Fixed) Direct Debit).

No "Monthly Variable Direct Debit" though, so it's closer to a quarterly cash/cheque account, except you don't actually make the payment yourself each quarter.

Does that attact the same discounts as monthly DD?

Vestra

Toxteth_OGrady wrote: »

Does that attact the same discounts as monthly DD?

No. It usually does not.

LeeSouthEast

Vestra wrote: »

No. It usually does not.

And for exactly the reason this all kicked off in the first place. They can't make a profit from holding your money

DevilsAvocado

The first part of this article is slightly misleading. Stating that the moves follow an MSE campaign implies that MSE is the cause of this action.

Toxteth_OGrady

It does not necessarily imply what you infer. LOL

:cool:

TOG

MarkyMarkD

This whole issue is a lot of nonsense.

In most cases where people reckon that their monthly payments are too high, they aren't. And in most cases where people cannot understand why their monthly payments are increasing despite them being in credit, there is a good reason.

The interest lost by being in excessive credit - if indeed you are - is buttons at the moment. And the interest earned by the energy companies across their whole customer base is less than nothing because more customers owe them money, than are owed money.

The whole issue has been blown out of all proportion.

The OFGEM changes will simply lead to better explanations by companies of the DD amounts they set, not to reductions in those amounts.