How do companies calculate direct debit when switching?

superstylin

The question is in the title I suppose!

I'm considering switching to save over a hundred pounds but what I don't want is to end up with a bigger direct debit than I already have. So do energy companies get your usage figures from your previous utility company in order to work out your D.D or do they use some other mysterious formula for estimating how much energy you might use (size of home and number of people in it)?

thanks in advance

McKneff

Lots of them try and say 'oh yes, our DDs will be cheaper than that' dont fall for it.

They can do an estimate but when i have switched I have always asked my present supplier what my last years figures were. They dont have a poblem in giving you the information. Other than that look at your bills and give them the figure from that.

Its the only accurate way to do it.

Check what tariff you are on and compare it against the new tariff

penrhyn

They should know what your consumption was last year, if not tell them or get the information from your current supplier).
Remember its usage in KWH thats needed not how much you pay/month.

They know their own pricing, so can work it out on that basis.

jenny2009

They work out how much they think you will use and divide it by 12. So if they think you will use £1200 of fuel in a year they will set your DD at £100 or slightly higher.

Unless you are persuaded by a door step or phone caller to swap then it will be set at £50. It will still cost you £1200 for your fuel but you will only pay £50 per month for a year, then your DD will jump to £150 as you will owe £600 which will be added on to your next bill.

KimYeovil

They accept what you tell them when you submit the application.

Cardew

The priority of call centre and doorstep salesmen is to get commission; so they will set the DD as low as it takes to get you to switch!!!!!!

superstylin

right so I'll make sure they know, whether through the switching application or through a phonecall from me, exactly what my usage was last year. Cheers all!

KimYeovil

(I do not condone the following behaviour: an initial run through of the comparison calculators with your actual predicted useage to know how much you will likely owe followed by a slightly modified estimated useage so that your initial payment is set to what you would like. This is bad and not to be encouraged.)