Direct Debit Payments

Rieslingnut

My account with my utility company is significantly in credit (presumably because I have been building up a credit balance for anticipated higher winter use) but I have decided to switch energy providers ahead of winter to enjoy cheaper rates. This is a process that should take 4-6 weeks so I have cancelled my existing direct debit as there is more than enough money on the account to meet my consumption until switchover.

Today I receive a letter from my existing supplier advising me that beacise I have cancelled my direct debit I am now on higher prices as a result. Odd that, don't you think, considering that I've already paid them more than enough to meet the remaining bill.

Any advice? This does seem a bit sharp to me.

GSXRCarlos

did you advise them that you were going to cancel?

sounds like a standard letter, and by paying by DD you would normally save over their "standard" tariff

angeleeyes

GSXRCarlos wrote: »

did you advise them that you were going to cancel?

sounds like a standard letter, and by paying by DD you would normally save over their "standard" tariff

Yep, you would be getting a discount by paying direct debit, by cancelling the DD, you'll have to pay the little bit extra (usually a couple of quid)

Rieslingnut

Yes - it was a standard letter (complete with estimated bill) and I rang my supplier and requested that they re-instated my direct debit at 1p per month which they said they would do. But, guess what, it was too good to be true and they have subsequently e-mailed me to say that it must be re-instated at the previous level or I'm stuck with the higher rates. "Computer says no......" I suppose.

Rieslingnut

It's Scottish Power by the way and I was on their fixed price deal that ended 31st Aug so, in the light of the article about them on this website, I thought it prudent to tell them I was moving!

GSXRCarlos

i have to admit, i don't know much about these matters, i've only just bought my house and i'm on a pay as you go meter (for now) while i'm doing it up.

speak with you (proposed) new supplier and ask their advice, failing that speak with your existing supplier and ask how/when you'll get the money back?

can you afford to be without it for a few months? (the money, not the service they provide - lol)

KimYeovil

Not sharp practice at all. That is why you get cheaper prices. If you don't like it, pay the higher price (that reflects the higher costs).

JohalaReewi

Rieslingnut wrote: »

It's Scottish Power by the way and I was on their fixed price deal that ended 31st Aug so, in the light of the article about them on this website, I thought it prudent to tell them I was moving!

I had the same problem with Scottish Power when I moved house. I knew there was more than enough credit to pay the final bill so cancelled the DD on the last day. I was instantly put on the standard rate (even though I had prepaid more than enough) and the final bill was higher as a result. After a few phone calls, Scottish Power agreed to give me a refund on the final bill.

The moral of the story is that if you are with Scottish Power, don't cancel the DD until you have completed the switch (or house move) and got your final bill.

DVardysShadow

KimYeovil wrote: »

Not sharp practice at all. That is why you get cheaper prices. If you don't like it, pay the higher price (that reflects the higher costs).

The OP is leaving SP and I believe, has no more to pay. So there is no reason to charge more for using another method of payment.