I've lowered my consumption yet my direct debit has gone up

MrCarrot

Over the last 6 months I've used as little gas and electric as possible. During this time I haven't had the heating on, nor the hot water (I only have showers and just boil the kettle once a day to wash up).

As a result I got npower to reduce my direct debit from £80 a month to £40 a month.

The amount I've been spending on gas and electric each month on average is as follows:

Electricity: £33
Gas: £6.50

My account with npower is also in credit by just under £200.

However I have received a letter today saying they're putting my direct debit up to £70. I have called them to challenge this, and they have now reduced it to £54 (that's still an increase of £14 a month over what I was paying).

I'm still not particularly happy about this given how thrifty I've been with my consumption and the fact my account with them is in credit. However, I realise energy prices and on the rise and I might have to concede at some point and put the heating on, so I'm tempted to leave the payment at £54 month. What do you folks think?

Thanks

MrCarrot

penrhyn

You will be using more gas over the coming months and I guess you won't want to be in debt at the end of the heating season.
I'd leave it as it is but ensure that you provide your supplier with regular meter readings.

uptomyeyeballs

Being in credit essentially means paying in advance for what you'll use in future. Being in debt means paying in arrears for what you have used already. It depends which one you're comfortable with. There are pay-as-you-use options available to you if you want them.

aliadds

I was in a similar situation to you, with the same sort of usage as well. I contacted Scottish Power last week and they reduced my direct debit from £44 to £35! :j I am £179 in credit. I 'm obviously very happy to have this reduction. However, I do read my meters weekly and update my account online with SP. Therefore I always know exactly what my balance is!
Only wish I could reduce my water bill....SWW = £39 a month :rolleyes:

MrCarrot

aliadds wrote: »

I was in a similar situation to you, with the same sort of usage as well. I contacted Scottish Power last week and they reduced my direct debit from £44 to £35! :j I am £179 in credit. I 'm obviously very happy to have this reduction. However, I do read my meters weekly and update my account online with SP. Therefore I always know exactly what my balance is!
Only wish I could reduce my water bill....SWW = £39 a month :rolleyes:

That's a good idea actually, I may ask them about managing my account online. I simply want to pay for what I use on a month-by-month or quarterly basis, but at the moment to get their "discount" I have to pay by fixed monthly direct debit, and without a crystal ball you don't know exactly what your usage will be.

aliadds

Well I do pay by fixed direct debit, but obviously I know how much I'm using every week, so I know the amount being paid is right for my usage. Thats why I rang in the first place as i knew that at £44 and £179 in credit that I should get a lower monthly dd! However initially they offered me a refund of the £179, but they would have then increased my dd! It was more important for me to have a lower monthly payment.
The other point is if you use an online tarriff you should get an additional discount for paperless billing. I think it would be worth you ringing Npower, and if you don't get any joy from your first call maybe ring again. I sometimes think some advisors are more accomodating than others!

dogshome

Hi Mr Carrot - Monthly Direct Debit payments are an arrangement between you and your utility supplier that each month you will pay them 1/12th of your estimated annual bill, but, the time of year when you are in credit depends on when you started the ageement. If the arrangement was made at the beginning of winter - Say early November - the account will be in a debit situatiion right through to the following November. Although in these cases the utilities will apply pressure to raise D/D payments to get the account in credit or a lower level of debt, the fact is that their 'debt loss' is balanced out by D/D customers who signed up the Spring and will be handing the utility cash they don't owe, all summer long.
Your near £200 credit at this time of year looks about right - So stand your ground and if n'power want to argue, insist on detailed figures of their csalculations
Good Luck

tiamaria

I read my electric and gas meter with SP today and they've promptly replied by putting up my dd from £50.50 to £81!! Why? I am £182 in credit after paying this bill! This is enough to cover January's bill and with the £50 a month also going in probably enough for a bill or 2 after that!!

My last 2 bills were £157 and £166 and the winter should be less - unless SP are planning to really hike up the rates:eek: I can't think why they'd put my bill up another £30 a month otherwise? Makes no sense

MrCarrot

Thanks for all the replies everyone. Tiamaria, npower have done exactly the same to me. However when I called them up, they did agree to reduce the direct debit somewhat.

Although I am now paying over £10 more than I was over the last few months, I am anticipating using more energy as the winter aproaches so I'm going to leave it as it is for the time being.

I think I also read that npower automatically gives you the money back when you exceed £100 in credit. I am not sure if this is true or not, however it could be the reason I have not had any money back is because my account is divided into electricity and gas, and each account is just under £100 in credit.

tiamaria

Mr Carrot, S power won't reduce my bill, they estimate my bill next year will be £1145 (this year i paid £878).

aliadds, you can have my water bill if you like £57.45 per month:eek: (SWW of course):mad:

Lot of money on bills each month isn't it?