Moving to new house - how do they work out direct debit?

JonB1081

Hi there,

We're in the process of moving to a new home (we're first time buyers) We're currently on the British Gas standard tariff, where we pay off the bills as they come. Last year we paid about £1060 for gas and electric. I would like to switch to a direct debit tariff.

However the house we're moving to is much better insulated (for example we have wood windows here, with single glazing) and also smaller than where we are currently renting.

I already know we should be paying less but I was wondering how the energy companies decide on the initial direct debit amount? I don't want to end up paying to much based on the figures from our current place? It seems like the direct debit amounts for initial customers are a bit of a lottery and don't get reduced for 12 months.

Any input would be gratefully received :j

keith1950

Hi, just play around with a few useage figures on the comparison websites and eventually enter the necessary kwh when you apply online on the suppliers actual website. Remember to check for available cashbacks on quidco and topcashback.

For instance average useage figures are around 3600kwh for electricity and 16000kwh for gas.

I have always found that by entering annual useage figures I can get the initial dd level that I want. Massage the figures until you get your required dd level.

When you move you normally have to register with the supplier that the previous occupant used but you can then initiate an online switch the same day you move although the switch normally takes 5-8 weeks.

If you enter monthly costs you are more likely to end up with a higher dd.

Terrylw1

The supplier uses what data they hold, its not an industry process so they are free to use what they think is appropriate.

This can range from Ofgem's average per year, to industry previous year values that they get at various process triggers, to a value they decided to apply generically until they have data. Sometimes, they may even use the previous customers consumption.

Either way, its all estimation. When you move in, start giving readings and track your own consumption. You can easily work out a daily average across a couple of weeks in a season to understand how much you use. Just remember, averages differ based on day of the week if you are in more days than others, so produce an average per spraddled week value or a/master average if the differing per day averages.

So, you may over or underpay or a short time but you can change you DD as seasons change if you won't yo track and forecast your usage.

Its likely they will ask you what you paid in your old place since other than factors such as heating a lot of the usage can relate to the customer (when in, how long, amount if appliances running, etc).

Switching for the day of your move is not advisable since the cooling off period would be before you move in and you are not the legal owner at that point. So, get in and start from there.

Owain_Moneysaver

In my experience, they wave their hands in the air and base it on the consumption of the chip shop down the road.

brewerdave

Owain_Moneysaver wrote: »

In my experience, they wave their hands in the air and base it on the consumption of the chip shop down the road.

....and if its EDF they assume that after 3 months you will install a smelting plant or blast furnace in your spare bedroom :rotfl:

Terrylw1

brewerdave wrote: »

....and if its EDF they assume that after 3 months you will install a smelting plant or blast furnace in your spare bedroom :rotfl:

...and don't have to explain how they calculated it, including to Ofgem according to the...:rotfl: