Protecting yourself from fuel arrears

schiff

So many people in these threads seem to suddenly find themselves faced with huge increases in their gas and electricity DDs. A modest level of self-help is all that's called for.

1) In a folder keep a note of your supplier (I know that sounds obvious but...) and their helpline number (keep a note of any freephone number that comes your way).
2) Keep a note of the name of the tariff you are on.
3) Keep a note of the rate of charge per unit for each fuel (that you have subscribed to) and any monthly standing charge, if that applies. Make it clear whether these figures include the 5% VAT. If you ever are told of increases in these rates, update your figures and file the letter(s) in your folder.
4) Read your meters on the last day of every month (or the nearest day if not possible) and record the figures.
5) Keep a record of the Direct Debits going through your bank account and the dates they are charged.
6) Take advantage of any system of reporting your own readings to your supplier - EDF/London Energy even pays you to do it!

That's the basics set up - shouldn't have taken too long!

Whenever you get a bill, find some time to study it thoroughly. Get your calculator and do your own checks. Compare the readings with the ones you have recorded yourself. If they are some way out (not worth it if it's not by a lot), tell your supplier and give them a current set of figures. Check the tariff used on the bill.
(NB: Checking the gas bill can be a bit of a nightmare. To convert meter readings to chargeable kwh you need to multiply the units used by 2.83 (if you have an old meter in cubic feet), then by a figure like 1.02264, then by a figure like 39.34 and then dividing by 3.6. Must be one of the most complicated charging systems there is!! If your meter is modern and measures in cubic meters, you don't need the 2.83 multiple. The figure like 1.02264 is what is sometimes termed as the 'Temperature & Pressure' figure and the figure like 39.34 is the 'Calorific Value'. These vary but should be found on the bill somewhere.)

Keep an eye on the final underpayment or overpayment shown by the bill. If you are underpaid in the depths of winter it is less important than if you are in the same situation in the summer (as it levels out over time). If you are really concerned about the arrears, you could maybe phone up to discuss an increase in your DD. If you are seriously overpaid and don't want to keep the money in hand for the future, you could phone to discuss a refund.

Finally, once you are totally happy that the bill is correct, file all the bills - covered in notes and calculations! - with everything else and remember where your file is kept.

It probably seems like a load of fuss and hard work which you might feel is off-putting. Don't be put off - once you have your folder up and running, it will work like clockwork and you will take it in your stride. With any luck the only real work involved will be 4 times a year when you get your bill.

Good luck!

oldwiring

Good advice! I'd add that there's nothing to stop you upping a DD if there is a price hike you can see an underpayment looming. OK, you'd like the money in your hands, but when that end of year reassessment comes, you mayn't be in a good postion to have an upped DD foisted upon you, and because it has never been available to spend you won't miss it!

Cardew

Good advice - perhaps some mention of estimated meter readings/bills could be included. How to recognise an estimated bill etc(I appreciate your post covers it indirectly - but doesn't spell it out.

Judging by many of the posts on this forum I believe that some people simply do not understand the principle of the Direct Debit scheme. They think that a DD when set up by a company pays their account in full and do not appreciate that a debit balance can build up - which needs to be paid off(usually before you can swop suppliers)

irnbru_2

Cardew wrote:

Judging by many of the posts on this forum I believe that some people simply do not understand the principle of the Direct Debit scheme. They think that a DD when set up by a company pays their account in full and do not appreciate that a debit balance can build up - which needs to be paid off(usually before you can swop suppliers)

Agreed.

This morning's phone-in on Radio Scotland had a caller who took a capped-rate tariff from Scotish Power. She was informed she'ld pay £46 per month for it. A couple of weeks later she was told it'ld be £53. She complained - she assumed the DD was capped not the per-unit cost. Admittedly, everyone I spoke to assumed the same.