Monthly direct debit too high

moontree

I get both gas and electricity from Powergen and pay by fixed monthly direct debit. I've just had a letter from them saying they're increasing it from £53 to £72! No reason was given for this massive increase... they just went on about how much cheaper they are than British Gas.

I was baffled as our recent bill showed us to be in credit. I then noticed it was based on estimated readings, so I submitted actual meter readings. These were higher, but even then we only owed them £40. We've been with them since Sept, paying £53 a month and have only underpaid by £40 in total... and that's been over winter... obviously we'll use less gas in summer.

I've just emailed them to query the huge increase, but am wondering what my rights are in this situation. Fixed monthly direct debit is supposed to be the cheapest option, but can the companies just set it at whatever level they choose? And if we did overpay, how long would it take to get a refund?

All advice gratefully received.

thriftykatie

Similar thing happened to me with EDF - used to pay £45 then went up to £80 without explanation! I paid for a few months (before I joined MSE and less financially proactive!) and before I got round to doing something about it they put it down to £33! Bizarre. Doesn't help in your case although with my telephone bill I was overpaying and asked for a refund when I received my bill. They obliged without any problem and sent me a cheque refund, so Powergen may do the same if you ask.

seven-day-weekend

Provide Powergen with readings every month and they will provide bills based on your own readings instead of estimated ones.

I've always found them to be helpful, discuss the amount of the direct debit with them and I'm sure you'll be able to sort it out.

I had a refund from them as I was over £300 in credit (I set the level of the D/D) and the cheque came within a week.

moontree

Thanks, guys. I've emailed them asking for an explanation so we'll see what they say. Am going to submit meter readings on the first of every month - hopefully I'll remember it that way - I find it weird that they never ask!

yellowmoon

I have had big rises in my direct debits too. Gas from 63 to 75 not too bad but elec. from 35 to 79.50. Mine are mainly estimated according to the bills so I will read them and phone them in for the next few months to try to get them lowered.

moontree

I just got a reply from Powergen and they've agreed to reduce our monthly direct debit to £60! They've also switched us to a different programme so we'll get a higher discount.

Just goes to show it's well worth speaking up on these things. They were very helpful.

Gal

Should always contact your supplier first if you have a problem them post on here if you get no luck - Makes no sense asking someone else to justify why your direct debit has gone up as only you know how your account stands.

moontree

Gal, I wasn't asking anyone here to justify why my direct debit had gone up. I was simply looking for some advice on what to do in that situation, e.g. what my rights were and if anyone else had had a similar experience.

Anyway, it's all been sorted now.

gem4

I had problems with Powergen after a couple of years caused by estimated bills and not asking me to increase payments. I switched to Scottish Power next. After 6 months they tried to increase my payments to almost double based on an 'estimated usage over the next 6mths'.
I phoned them and said no way could they estimate my usage when I'd only been with them for a few months and that if they tried to increase my payments I would switch. They agreed to leave them as they were until a year was up. I'd moved on to EDF by that time and am now paying less than I did to both Powergen and Scottish Power despite increases in price. I do make sure to send them a true reading every time I get a bill though so I dont get any nasty shocks.