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British Gas "forecasted energy charges" and DD increases

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Kess
Kess Posts: 111 Forumite
I keep have problems with British Gas trying to increase my monthly DD, which I keep refusing to permit because I can do my sums and I'm confident my payments are just right to cover the energy I use (and I'm on a fixed price plan so I know the costs won't change).

The latest bill from British Gas has another such "reassessment" and explains that, although my total electricity usage for the last year (April 2009 to April 2010) was 11200kWh, British Gas "forecasts" that I will be using 15060kWh next year so they will be increasing my monthly DD by 34%.

What? How can they predict I'm going to be using 34% more electricity next year? Is there a rational explanation for this clairvoyance from BG?

Comments

  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    The cynical answer would be that they wish to improve cash flow!

    However any company will be in big trouble with the Regulator if it is seen to have a policy to build up a large surplus of DD accounts.

    There has also been a lot of criticism that companies have allowed many customers to build up large debit balances(some say to trap them so they can't leave) and perhaps this is to redress that problem.

    One thing is certain, your increase is as a result of a computer algorithm and your letters are computer generated - all untouched by human hand!!!

    As an example of a stupid computer algorithm BT's take some beating. I have built of a credit balance on my account, yet it 'decided'(automatically) to increase my DD by £1. Next month it calculated(all by itself again) that I was to have a 3 month 'holiday' with no DD payment but in the same letter told me that when DD payments resumed my DD must increase by a further £1!
  • Kess
    Kess Posts: 111 Forumite
    "The cynical answer would be that they wish to improve cash flow!"

    That was my guess. The irritating thing is that BG can happily announce they are going to increase the amount they take via DD - I have to then waste my time phoning them up to prevent it. :mad:

    Anyway, once this fixed price plan is over I'll be looking for a more reputable supplier... :D
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