Switching Dual Fuel

emlou119

Hi, I hope that I'm posting in the right place. I'm new to this, so trying to find my way around.

So, here goes. In August 2009, I switched to a dual fuel online plan with NPower, paying £71 per month for both. All was fine until August 2010 when the contract ended. They wrote to me stating that as I missed a number of price increases and overspent on my estimated useage my payments would be going up to £179 per month, which covers increases and my debt from the previous 12 months.

My query is that I now want to switch providers as I'm pretty sure I can get it cheaper elsewhere, but I'm not sure how I go about this due to owing them money. Will they just ask me to pay them upfront what I owe them? Or would it be better to stay with them until August 2012 and see where I am then?

Any help with my query would be greatly appreciated.

Emma

jalexa

emlou119 wrote: »

They wrote to me stating that as I missed a number of price increases and overspent on my estimated useage my payments would be going up to £179 per month, which covers increases and my debt from the previous 12 months.

A warm:) welcome to the forum.

You use the word "debt" but do you mean account "debit balance"?

An account "debit balance" resulting from inadequate monthly payments is not a transfer blocking debt just as long as the agreed monthly payments are maintained. BTW, what is the actual size of the account debit balance taking account of the most recent actual meter readings?

Also do you know your annual consupmptions in kWhrs. Should be on your annual statement. You must use that on a comparison website to get an accurate comparison. Do not compare with monthly payments. Post that info for more meaningful help.

emlou119

Hi Jalexa, thanks for your reply.

What I classed as 'debt' was the outstanding balance left from the previous year - due to me spending over (KW) what they estimated I'd spend, so that £71 per month which I was paying didn't cover it. I have looked on comparison sites and have found that I would be able to save money elsewhere, but I'm not sure the process due to me owing them money. The amount outstanding is £387.

My annual consumption for Electricity was 4286 and for gas 14780. Why do you say not to compare with monthly payments? What should I compare it with?

Thanks, Emma

HappyMJ

emlou119 wrote: »

Hi Jalexa, thanks for your reply.

What I classed as 'debt' was the outstanding balance left from the previous year - due to me spending over (KW) what they estimated I'd spend, so that £71 per month which I was paying didn't cover it. I have looked on comparison sites and have found that I would be able to save money elsewhere, but I'm not sure the process due to me owing them money. The amount outstanding is £387.

My annual consumption for Electricity was 4286 and for gas 14780. Why do you say not to compare with monthly payments? What should I compare it with?

Thanks, Emma

Always use annual kWh. It should have a guess at your current annual bill then you can divide that figure by 12 to get your monthly payments. As you have underpaid by £387 then your monthly direct debit should be 387/12+71 £103.25 per month. If you had used £71 to compare then the comparison will not be valid.

emlou119

Thanks HappyMJ. It looks like I can save quite a lot of money, so I'm off to switch. Thanks again!

jalexa

emlou119 wrote: »

It looks like I can save quite a lot of money, so I'm off to switch.

Well I'd certainly recommend that you go away and do a comparison based on your actual consumption.

Be aware however that when/if you switch any "debit balance" with the losing supplier will need to be settled in full. Depending on your circumsmstances it may be better to stay a while with current supplier, perhaps trying to get the monthly payment reduced, though by my calculations it is "about right" to pay for your current consumption and to recover the debit balance over 6 months (the "norm" for another reason beyond the scope of this post).

Also be aware that if you are on a "deferred discount":eek: tariff you will lose any unearned discount:(.

Another option is to ensure you are on NPower's most competitive tariff for you. The comparison (using you annual consumption:D) should provide the answer.

Whatever, start submitting customer readings whenever you receive an estimated bill so the situation cannot arise again.