SP increased my monthly price even though i am on Capped on electricity plan

JAN.1026

Recently I have received very expensive bills from Scottish power due to the the immersion boiler. I am currently owing them about 800 pounds.

I am actually on capped on electricity plan since last year and it is going to end in Aug this year. My monthly payment is 43 pounds.

I realised as many people told me that I need to pay it even though I have no idea why the immersion boiler is on and use as much as 70 unit per day on top of my normal usage. But i thought I wouldn't have to pay it until my capped on contact comes to an end.

However, Scottish power rang me that day told me to pay it now or by instalment added on my monthly bill. Not only, they even send me a letter telling me that they increased my monthly price plan to 100 pounds due to the average usage has increased.

Obviously , the usage increased is just an exceptional incidence and we have already sorted it out. and we have only used about 7 unit per day since last 3 weeks.Therefore I couldn't see why I need to pay for it!

I am okay to pay for the 800 debt by instalment, on the top of my 43 pound monthly price plan, but increase my monthly price plan to 100 pounds seems unreasonable. that means i need to pay 163 pounds every month in total!

can anyone tell me that if they can legally increase my monthly payment while I am on the capped on plan?

mattcanary

The price that is capped is the amount you pay per unit of electricity used, not the monthly amount you pay by Direct Debit.

£800 is a lot of money in arrears for an electric account. It is only right and proper that Scottish Power should look to increase the monthly Direct Debit payments to start paying this amount back (as well as covering your future usage).

However, you may wish to negotiate the amount the Direct Debit payment should be increased to, if the problem with the immersion boiler has now been fixed - as it appears to have been a temporary problem only. Scottish Power are likely to assume this high usage will be a regular pattern in future, unless you contact them about this.

JAN.1026

mattcanary wrote: »

The price that is capped is the amount you pay per unit of electricity used, not the monthly amount you pay by Direct Debit.

£800 is a lot of money in arrears for an electric account. It is only right and proper that Scottish Power should look to increase the monthly Direct Debit payments to start paying this amount back (as well as covering your future usage).

However, you may wish to negotiate the amount the Direct Debit payment should be increased to, if the problem with the immersion boiler has now been fixed - as it appears to have been a temporary problem only. Scottish Power are likely to assume this high usage will be a regular pattern in future, unless you contact them about this.

Thanks! yes, I understand about paying the 800 pounds¬ i realise that it is reasonable and i am willing to.

it is just when i check on the SP, it advertises that the capped on plan is a fixed payment per month which will not increase until it finishes. As i have been on it for a while and while i was in credit they didn't pay me back anyway, they just take 43 pounds every month.

i wonder if i misunderstood it then? because if i am in credit they won't pay me back but while i am on debit they increase me payment, then what's the point for joining it?

Premier_2

The tariff will not increase, but if you use more it will cost you more.

Paying monthly by DD is often said to be paying a fixed amount every month. This often is the case and your account may go into debit or credit over the year. However it is not strictly fixed as the supplier is bound to review your payments to ensure they are still on track to pay for what you use- if not, the amount they collect will be varied after notice is given to you.

cajef

JAN.1026 wrote: »

it is just when i check on the SP, it advertises that the capped on plan is a fixed payment per month which will not increase until it finishes.

what's the point for joining it?

Where does it say that, all I can find is this:-

First, you’ll enjoy the peace of mind of knowing that the prices you pay for your energy units are guaranteed not to rise above the capped rates before June 2013. Second, if our standard prices fall before then, so will yours!

The point of joining is the price you pay per unit will not rise above the capped rate, so if prices rise dramatically yours will stay the same, but if your usage goes up then the direct debit will be adjusted to pay for the extra units used.

JAN.1026

cajef wrote: »

Where does it say that, all I can find is this:-

The point of joining is the price you pay per unit will not rise above the capped rate, so if prices rise dramatically yours will stay the same, but if your usage goes up then the direct debit will be adjusted to pay for the extra units used.

Sorry , I am not sure if i understand it correctly. Do you mean I need to pay the extra that I have used (which is the 800 pounds) coz I am happy to pay for it anyway. Which they have told me that they will put 63 pounds on the top of my monthly payment. However, the letter that I received after spoken to SP, is that they do not only charge me for the extra units that i have used, they also increase my monthly payment from 43 pounds to 100 pounds from next bill and onwards plus the 63 pounds (instalment of that 800 pounds bill).

However, the usage increased 10 times higher was due to the exceptional issue and SP knows about it (as I thought it was the meter problem at the beginning so I contacted them as well as raised a dispute), and after I found out the reason for the suddenly increased usage i have inform them as well. The usage has now gone back down from 79 units per day to 7 units per day since 17-01-11.

Can they actually increase my monthly payment from 43 to 100 pounds because of this incident? (not to mention about that 63 pounds for the instalment of 800 pounds bill as i am okay to pay for it)

echoecho_2

The Direct Debit amount that Scottish Power are asking for will be calculated to cover your future electricity usage and to clear the outstanding balance.

They will estimate your future usage based on historic consumption. If, as you say the historic usage is not going to be a true reflection of your future consumption you can contact them to ask if they will reduce your Direct Debit.

It is unlikely that they will do this though until the balance has been cleared and your account is back to £0.00.

macman

A capped tariff is a capped price per unit, not a capped overall price per month! if your usage goes up, so will your DD.
If you want to get a reduction on the ongoing monthly amount, make a lump sum payment now to reduce the considerable debt you have built up.

JAN.1026

Thanks guy! the problem has sorted out now! I have given them a ring and they agree to reduce the monthly payment to 106 pounds! =]