Why do utility companies love direct debits?

overworked_underpaid

I have switched Gas and Electricty companies about 3 times in the last 6 years to get a better deal. I find that utlity companies prefer direct debit payments in order to offer you a better deal.

However, I have always found them very ineffective as they keep changing the payment amounts and writing to you to say that your payments have gone up and so forth. I had one occasion where after changing my provider I was told that I had paid £600 too less for over a course of a year.

I currently have gas and electricity supplied by 2 different suppliers and get billed quaterly and pay the full balance when I receive my bill. I wish to hunt for a better deal but when using various comparison websites I get quoted different companies as the best supplier. This seems very confusing as there is no consistency. Does anyone know which Gas and Electicity suppliers do not penalise for people like myself paying the full quaterly bill on time? My current electricity supplier is EDF Energy and gas supplier is Scottish Power.

Woby_Tide

Ebico charge the same regardless of payment method

Sage

Hi.
We switched Gas and Electricity from EDf on 1st Nov. Soon had letter saying we are in credit by £ 7 and £120. and these amounts would be sent to our account. Just got December statement, the £7 has gone in but no sign of the £120. Just got off the phone to EDF and the reason they gave was “as the direct debit was cancelled they didn't know where to send the money”
Strange as they knew where to send the £7. I asked why they didn't write. Or send a cheque to my postal address. I'm not sure came the reply.
I wonder how many people never check the statements and how much money is owed to customers
I like direct debits but you cannot become complacent with them

overworked_underpaid

Woby_Tide wrote:

Ebico charge the same regardless of payment method

I had never heard of this company. I've just checked their prices and they already seem cheaper for both Gas and Electricity. Furthermore there is no standing charge.

Does anyone know what their customer service is like? Is it a smooth process to switch to them?

Woby_Tide

their Customer Services is run by Southern Electric and switching is painless, especially compared to BG